Barclays (BCS) AI Stock Analysis

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Barclays

(NYSE:BCS)

Rating:78Outperform

Price Target:

$23.00

▲(16.87% Upside)

Barclays' overall stock score reflects its strong financial performance, solid technical indicators, and positive earnings call highlights. The company's robust revenue growth and operational improvements drive a favorable outlook, though caution is advised due to potential RSI overbought levels and challenges such as FX impacts and anticipated loan loss provisions.

Barclays (BCS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$68.92B

Dividend Yield2.2%

Average Volume (3M)13.55M

Price to Earnings (P/E)9.0

Beta (1Y)1.19

Revenue Growth16.06%

EPS Growth64.31%

CountryUS

Employees93,000

SectorFinancial

Sector Strength76

IndustryBanks - Diversified

Share Statistics

EPS (TTM)0.62

Shares Outstanding3,513,666,000

10 Day Avg. Volume8,557,427

30 Day Avg. Volume13,548,201

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap-2.86

Enterprise Value/Revenue-3.76

Enterprise Value/Gross Profit-7.31

Enterprise Value/Ebitda-15.42

Forecast

1Y Price Target

$23.00

Price Target Upside16.87% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Barclays Business Overview & Revenue Model

Company DescriptionBarclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK; Barclays UK Corporate Bank; Barclays Private Bank and Wealth Management; Barclays Investment Bank; and Barclays US Consumer Bank segments. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services, as well as lending products. In addition, the company engages in securities dealing activities and issuing of credit cards. The company was formerly known as Barclays Bank public limited company and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.

How the Company Makes MoneyBarclays generates revenue through multiple streams. Primarily, it earns money from interest income on loans and mortgages provided to individuals and businesses. Additionally, the bank charges fees for various banking services, such as account maintenance, transaction fees, and advisory services in its investment banking division. Another significant revenue stream comes from trading and investment activities, where Barclays engages in buying and selling securities, derivatives, and foreign exchange. The bank also benefits from wealth management services, where it charges fees for asset management and financial planning. Strategic partnerships, such as alliances with technology firms for digital banking solutions, further enhance its revenue potential by attracting a broader customer base and improving operational efficiency.

Barclays Earnings Call Summary

Earnings Call Date:Jul 29, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance with significant income and profit growth, improved return metrics, and substantial shareholder distributions. However, there are challenges related to impairment charges in the U.S. Consumer Bank and the impact of FX rates. Overall, the highlights outweigh the lowlights, indicating positive momentum in the company's strategic plan execution.

Q2-2025 Updates

Positive Updates

Strong Income and Profit Growth

Income grew by 14% year-on-year to GBP 7.2 billion. Profit before taxes increased by 28% to GBP 2.5 billion, and earnings per share rose by 41% to 11.7p.

Record Shareholder Distributions

Announced a GBP 1 billion buyback and a dividend per share of 3p, totaling GBP 1.4 billion in shareholder distributions for the first half of 2025, up 21% year-on-year.

Return on Tangible Equity (RoTE) Improvement

RoTE was 13.2% in the first half of the year, compared to 11.1% in the first half of 2024 and 9.9% in the second quarter of the previous year.

Investment Bank Performance

Investment Bank's RoTE improved by 2.6 percentage points year-on-year to 12.2%, with stable RWAs and increased market share.

Cost Efficiency

Achieved GBP 200 million of gross efficiency savings in the second quarter, contributing to a 4 percentage point improvement in the cost-to-income ratio to 59%.

U.S. Consumer Bank Growth

RoTE increased to 10.2%, with a 7% year-on-year increase in total income and a net interest margin expansion to 10.8%.

Negative Updates

U.S. Consumer Bank Impairment

U.S. Consumer Bank impairment charge of GBP 312 million, with expectations of a circa GBP 100 million day 1 charge in Q3 and a GBP 50 million post-acquisition stage migration charge for the next few quarters.

Impact of FX Rates

Year-on-year performance in Q2 was impacted by a weaker U.S. dollar, decreasing reported income, costs, and impairments.

Deposit Balance Decline

U.K. deposit balances fell by GBP 1.8 billion in the quarter due to competitive term deposit pricing and the ISA season.

Company Guidance

In Barclays' Second Quarter 2025 Results Call, Group Chief Executive C.S. Venkatakrishnan highlighted the company's robust financial performance. The company's income grew by 14% year-on-year, reaching GBP 7.2 billion, with profit before taxes increasing by 28% to GBP 2.5 billion. Earnings per share surged by 41% to 11.7p, while the return on tangible equity (RoTE) was recorded at 12.3% for the quarter, up from 9.9% the previous year. The cost-to-income ratio improved by 4 percentage points to 59%. Barclays announced a GBP 1 billion share buyback and a dividend per share of 3p, resulting in total shareholder distributions of GBP 1.4 billion, a 21% increase from the prior year. The CET1 ratio stood at 14%, and the tangible book value per share rose to 384p. Additionally, Barclays achieved GBP 200 million in gross efficiency savings in the quarter, contributing to a total of GBP 350 million for the first half of 2025, against a target of GBP 500 million for the year. The company reaffirmed its commitment to its strategic plan, aiming for a RoTE of around 11% in 2025 and over 12% in 2026, with significant growth in its U.K.-focused businesses and stable risk-weighted assets in the Investment Bank.

Barclays Financial Statement Overview

Summary

Barclays demonstrates solid financial health with strong revenue growth and profitability, highlighted by a stable balance sheet with no debt and improving cash flows. However, the absence of EBIT margins in the latest period and past cash flow volatility underline areas for potential concern in operational and cash flow management.

Income Statement

Positive

Barclays has shown a consistent revenue growth with the latest annual revenue increasing from 23.5B to 26.2B, a 11.3% growth. The net profit margin for the latest year is approximately 24.0%, indicating strong profitability. However, EBIT margin figures are absent for the latest period, limiting a full assessment of operational efficiency.

Balance Sheet

Positive

The balance sheet shows strong equity with a debt-to-equity ratio of 0, indicating no debt and excellent financial stability. The return on equity stands at 8.8%, reflecting decent profitability on shareholder investments. The equity ratio of 4.7% suggests a moderate level of equity financing compared to total assets.

Cash Flow

Positive

Barclays' free cash flow significantly improved from -2.6B to 5.5B, showcasing robust cash generation capabilities. The operating cash flow to net income ratio is approximately 1.1, indicating that the company efficiently converts its income into cash. However, the negative free cash flow in the previous period highlights potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.38B	51.62B	47.75B	33.55B	21.94B	25.39B
Gross Profit	26.99B	26.23B	25.38B	24.96B	21.94B	21.77B
EBITDA	12.79B	9.81B	8.34B	8.73B	9.87B	4.80B
Net Income	6.59B	6.31B	5.26B	5.93B	7.01B	2.38B
Balance Sheet
Total Assets	1.59T	1.52T	1.48T	1.51T	1.38T	1.35T
Cash, Cash Equivalents and Short-Term Investments	434.27B	509.67B	538.31B	542.42B	521.33B	457.38B
Total Debt	110.53B	185.75B	176.55B	183.37B	166.59B	144.02B
Total Liabilities	1.52T	1.45T	1.41T	1.44T	1.31T	1.28T
Stockholders Equity	74.88B	71.82B	71.20B	68.29B	69.05B	65.80B
Cash Flow
Free Cash Flow	0.00	5.54B	-2.65B	28.48B	47.20B	56.18B
Operating Cash Flow	0.00	7.11B	-927.00M	30.23B	48.92B	57.51B
Investing Cash Flow	0.00	-17.89B	-23.41B	-21.67B	4.27B	-18.38B
Financing Cash Flow	0.00	784.00M	-8.35B	696.00M	107.00M	2.73B

Barclays Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price19.68

Price Trends

50DMA

19.26

Positive

100DMA

17.92

Positive

200DMA

15.99

Positive

Market Momentum

MACD

0.16

Positive

RSI

47.87

Neutral

STOCH

24.41

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCS, the sentiment is Neutral. The current price of 19.68 is below the 20-day moving average (MA) of 20.09, above the 50-day MA of 19.26, and above the 200-day MA of 15.99, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BCS.

Barclays Risk Analysis

Barclays disclosed 18 risk factors in its most recent earnings report. Barclays reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Barclays Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWG	82 Outperform	$54.85B	8.86	13.80%	4.65%	10.03%	29.51%
HSBC	81 Outperform	$220.38B	12.70	10.69%	5.07%	-2.96%	-13.66%
BCS	78 Outperform	$68.92B	8.98	9.83%	2.20%	16.06%	64.31%
ING	75 Outperform	$70.97B	11.05	12.08%	4.85%	1.13%	-1.14%
SAN	74 Outperform	$141.66B	9.80	12.85%	2.46%	-14.74%	17.03%
C	73 Outperform	$177.78B	14.01	6.64%	2.40%	0.52%	89.25%
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%

* Financial Sector Average

Performance Comparison

BCS

Barclays

19.68

7.87

66.64%

Citigroup

95.03

36.21

61.56%

HSBC

HSBC Holdings

64.73

23.24

56.01%

ING

ING Groep

24.07

7.16

42.34%

NWG

NatWest Group

13.88

5.29

61.58%

SAN

Banco Santander SA

9.44

4.70

99.16%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025