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Barclays Plc (BCS)
NYSE:BCS
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Barclays
(NYSE:BCS)
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Rating:73Outperform
Price Target:
$22.50
â–²(16.22% Upside)
Barclays' strong earnings call performance and solid financial health are the most significant factors driving the score. The company's undervaluation and dividend yield add to its attractiveness, although technical indicators suggest a neutral market sentiment. Challenges such as past cash flow volatility and U.S. Consumer Bank impairments are noted but do not outweigh the positive aspects.
Barclays (BCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.04B
Dividend Yield2.25%
Average Volume (3M)7.32M
Price to Earnings (P/E)9.2
Beta (1Y)1.22
Revenue Growth16.06%
EPS Growth64.31%
CountryUS
Employees93,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.62
Shares Outstanding3,489,418,500
10 Day Avg. Volume6,354,749
30 Day Avg. Volume7,324,625
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.55
Price to Sales (P/S)0.76
P/FCF Ratio7.07
Enterprise Value/Market Cap-2.78
Enterprise Value/Revenue-5.14
Enterprise Value/Gross Profit-7.42
Enterprise Value/Ebitda-14.78
Forecast
1Y Price Target
$22.50Price Target Upside16.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Barclays Business Overview & Revenue Model
Company DescriptionBarclays PLC is a British multinational investment bank and financial services company headquartered in London. It operates in various sectors including personal banking, investment banking, wealth management, and corporate banking. Core products and services offered by Barclays include retail banking services such as savings and checking accounts, credit cards, and loans, as well as investment banking services such as advisory, capital markets, and risk management solutions for corporations and institutions.
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
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.75
Positive
Balance Sheet
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.80
Positive
Cash Flow
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.38B | 51.62B | 23.50B | 23.74B | 22.59B | 16.95B |
| Gross Profit | 26.58B | 26.23B | 25.38B | 24.96B | 21.94B | 21.61B |
| EBITDA | 13.34B | 9.81B | 8.34B | 8.73B | 9.87B | 4.80B |
| Net Income | 7.02B | 6.31B | 5.26B | 5.93B | 7.01B | 2.38B |
Balance Sheet | ||||||
| Total Assets | 1.60T | 1.52T | 1.48T | 1.51T | 1.38T | 1.35T |
| Cash, Cash Equivalents and Short-Term Investments | 225.72B | 509.67B | 538.31B | 542.42B | 521.33B | 457.38B |
| Total Debt | 117.44B | 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 | 75.91B | 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
Neutral
19.36
Price Trends
20.35
Negative
19.35
Positive
17.19
Positive
Market Momentum
-0.13
Positive
36.60
Neutral
24.76
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 19.36 is below the 20-day moving average (MA) of 20.42, below the 50-day MA of 20.35, and above the 200-day MA of 17.19, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.60 is Neutral, neither overbought nor oversold. The STOCH value of 24.76 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $228.71B | 13.10 | 10.69% | 4.98% | -2.96% | -13.66% | |
74 Outperform | $59.05B | 9.36 | 13.80% | 4.48% | 10.03% | 29.51% | |
74 Outperform | $148.62B | 10.28 | 12.85% | 2.38% | -14.74% | 17.03% | |
73 Outperform | $71.04B | 9.16 | 9.83% | 2.25% | 16.06% | 64.31% | |
73 Outperform | $73.18B | 11.25 | 12.08% | 4.85% | 1.13% | -1.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $177.20B | 13.53 | 6.88% | 2.35% | -0.63% | 105.57% |
* Financial Sector Average
BCS
Barclays
19.36
7.07
57.53%
C
Citigroup
97.07
37.08
61.81%
HSBC
HSBC Holdings
65.86
24.15
57.90%
ING
ING Groep
24.04
7.82
48.21%
NWG
NatWest Group
14.40
5.49
61.62%
SAN
Banco Santander SA
9.77
4.88
99.80%
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.