LSE:BARC

Stock Analysis Report

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Market Cap

UK£30.6b

Last Updated

2021/06/13 18:33 UTC

Data Sources

Company Financials +

Executive Summary

Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, rest of Europe, the Americas, Africa, the Middle East, and Asia. More Details


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Barclays's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BARC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BARC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

BARC

-0.7%

GB Banks

0.4%

GB Market


1 Year Return

54.1%

BARC

37.3%

GB Banks

21.3%

GB Market

Return vs Industry: BARC exceeded the UK Banks industry which returned 37.3% over the past year.

Return vs Market: BARC exceeded the UK Market which returned 21.3% over the past year.


Shareholder returns

BARCIndustryMarket
7 Day-1.9%-0.7%0.4%
30 Day-0.2%0.8%1.7%
90 Day0.07%7.3%6.9%
1 Year55.1%54.1%40.3%37.3%27.3%21.3%
3 Year-1.1%-7.3%-19.5%-26.9%13.8%0.7%
5 Year19.4%8.8%14.9%-2.6%55.1%25.8%

Long-Term Price Volatility Vs. Market

How volatile is Barclays's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Barclays undervalued compared to its fair value and its price relative to the market?

44.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BARC (£1.8) is trading below our estimate of fair value (£3.23)

Significantly Below Fair Value: BARC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BARC is good value based on its PE Ratio (11.9x) compared to the UK Banks industry average (12.8x).

PE vs Market: BARC is good value based on its PE Ratio (11.9x) compared to the UK market (25.9x).


Price to Earnings Growth Ratio

PEG Ratio: BARC is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: BARC is good value based on its PB Ratio (0.5x) compared to the GB Banks industry average (0.7x).


Future Growth

How is Barclays forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BARC's forecast earnings growth (4.1% per year) is above the savings rate (0.9%).

Earnings vs Market: BARC's earnings (4.1% per year) are forecast to grow slower than the UK market (17.4% per year).

High Growth Earnings: BARC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BARC's revenue (3% per year) is forecast to grow slower than the UK market (5.4% per year).

High Growth Revenue: BARC's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BARC's Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

How has Barclays performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BARC has high quality earnings.

Growing Profit Margin: BARC's current net profit margins (14%) are higher than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: BARC has become profitable over the past 5 years, growing earnings by 31.6% per year.

Accelerating Growth: BARC's earnings growth over the past year (29.4%) is below its 5-year average (31.6% per year).

Earnings vs Industry: BARC earnings growth over the past year (29.4%) exceeded the Banks industry 8%.


Return on Equity

High ROE: BARC's Return on Equity (5.3%) is considered low.


Financial Health

How is Barclays's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BARC's Assets to Equity ratio (20.9x) is very high.

Allowance for Bad Loans: BARC has a low allowance for bad loans (94%).

Low Risk Liabilities: 62% of BARC's liabilities are made up of primarily higher risk sources of funding.

Loan Level: BARC has an appropriate level of Loans to Assets ratio (25%).

Low Risk Deposits: BARC's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: BARC has a high level of bad loans (2.4%).


Dividend

What is Barclays's current dividend yield, its reliability and sustainability?

0.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BARC's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.29%).

High Dividend: BARC's dividend (0.55%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


Stability and Growth of Payments

Stable Dividend: BARC is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: BARC is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BARC is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BARC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Jes Staley (64 yo)

5.5yrs

Tenure

UK£4,013,000

Compensation

Mr. James Edward Staley, also known as Jes, has been Group Chief Executive Officer of Barclays Plc since December 1, 2015. He serves as the Chief Executive Officer and served as Interim Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Jes's total compensation ($USD5.66M) is above average for companies of similar size in the UK market ($USD3.41M).

Compensation vs Earnings: Jes's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BARC's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: BARC's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Barclays PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Barclays PLC
  • Ticker: BARC
  • Exchange: LSE
  • Founded: 1690
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£30.632b
  • Shares outstanding: 16.98b
  • Website: https://www.home.barclays

Number of Employees


Location

  • Barclays PLC
  • 1 Churchill Place
  • London
  • Greater London
  • E14 5HP
  • United Kingdom

Listings


Biography

Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, rest of Europe, the Americas, Africa, the Middle East, and Asia. The company operates through...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 18:33
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.