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Barclays Plc (BCS)
NYSE:BCS
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Barclays
(NYSE:BCS)
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Rating:77Outperform
Price Target:
$26.00
â–²(16.18% Upside)
Barclays' overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust income growth and strategic efficiency improvements. Technical indicators support a bullish outlook, while valuation metrics suggest reasonable pricing. Challenges in motor finance provisions and loan loss rates are notable risks but are outweighed by the company's strengths.
Positive Factors
Revenue Growth
Barclays' consistent revenue growth reflects strong market demand and effective business strategies, enhancing long-term financial stability.
Cash Generation
Improved cash generation indicates efficient operations and financial health, providing flexibility for investments and debt management.
Strategic Expansion
Re-entering Saudi Arabia expands Barclays' market presence, potentially increasing revenue streams and diversifying geographic risk.
Negative Factors
Loan Loss Rate Increase
Rising loan loss rates could indicate credit quality issues, potentially impacting profitability and requiring increased provisions.
Motor Finance Provision
Significant provisions in motor finance suggest potential sector challenges, impacting short-term profitability and requiring strategic adjustments.
Cash Flow Volatility
Past cash flow volatility highlights operational risks, potentially affecting financial planning and stability if not managed effectively.
Barclays (BCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$89.95B
Dividend Yield1.71%
Average Volume (3M)4.75M
Price to Earnings (P/E)11.9
Beta (1Y)1.15
Revenue Growth17.50%
EPS Growth49.25%
CountryUS
Employees93,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.56
Shares Outstanding3,463,633,300
10 Day Avg. Volume4,715,129
30 Day Avg. Volume4,754,795
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-2.26
Enterprise Value/Revenue-7.46
Enterprise Value/Gross Profit-7.05
Enterprise Value/Ebitda-28.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 various channels, predominantly from interest income, fees, and commissions. The Personal Banking division earns money from interest on loans and mortgages, as well as service fees for accounts and credit cards. The Corporate Banking segment contributes significantly through lending services, investment banking fees, and advisory services for mergers and acquisitions. Additionally, Barclays' investment management services provide asset management fees. The bank also benefits from trading and investment activities in its Investment Bank division, which includes market-making and underwriting services. Strategic partnerships, such as collaborations with fintech companies, enhance their service offerings and customer base, further driving revenue growth.
Barclays Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Barclays with significant income growth, an upgrade in RoTE guidance, and early achievement of efficiency savings. However, challenges such as the motor finance provision and increased loan loss rate were notable lowlights.Q3-2025 Updates
Positive Updates
Strong Income Growth
Top line income increased by 11% to GBP 7.2 billion from GBP 6.5 billion in the same quarter last year. Group net interest income increased 16% year-on-year to GBP 3.3 billion.
Share Buyback Announcement
Barclays announced a GBP 500 million share buyback due to strong capital generation and a CET1 ratio of 14.1%.
Improved Return on Tangible Equity (RoTE)
Third quarter RoTE was 10.6%, with year-to-date RoTE at 12.3%. All divisions generated a double-digit RoTE.
Efficiency Savings Achieved Early
Barclays achieved its circa GBP 500 million gross efficiency savings target for 2025 one quarter earlier than planned.
U.K. Lending Momentum
U.K. lending showed strong momentum with a 17% year-on-year growth in corporate lending and mortgage growth for the past five quarters.
Negative Updates
Motor Finance Provision Impact
A GBP 235 million motor finance provision reduced profit before tax and earnings per share.
Loan Loss Rate Increase
The loan loss rate increased to 57 basis points, including a GBP 110 million single name charge in the investment bank.
Currency Impact
Year-on-year performance was impacted by a weaker U.S. dollar, which reduced reported income, costs, and impairments.
Company Guidance
During the Barclays Q3 2025 Results Analyst and Investor Conference Call, the company provided updated guidance and key metrics highlighting its financial achievements and future outlook. Barclays reported a notable 11% increase in top-line income, reaching GBP 7.2 billion, and a tangible net asset value (TNAV) per share increase to 392p. The return on tangible equity (RoTE) for Q3 was 10.6%, contributing to a year-to-date RoTE of 12.3% for 2025, prompting an upgrade of the 2025 RoTE guidance to greater than 11%. Barclays also expects group net interest income (NII) for 2025 to exceed GBP 12.6 billion. The announcement of a GBP 500 million share buyback reflects strong capital generation, supported by a CET1 ratio of 14.1%. The group remains committed to a 2026 RoTE target of more than 12% and plans to announce buybacks quarterly. Barclays aims to achieve a circa 61% cost-to-income ratio for 2025, despite additional motor finance provisions, and has already achieved GBP 500 million in gross efficiency savings, with plans to reach GBP 2 billion by 2026. All divisions reported double-digit RoTEs, with the investment bank and U.S. consumer bank showing notable improvements. Barclays is also focused on disciplined capital management, rebalancing its portfolio, and maintaining strong liquidity and funding positions.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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.29B | 51.62B | 23.50B | 23.74B | 22.59B | 25.39B |
| Gross Profit | 28.90B | 26.23B | 25.38B | 24.96B | 21.94B | 21.61B |
| EBITDA | 7.05B | 9.81B | 8.34B | 8.73B | 9.87B | 4.80B |
| Net Income | 6.91B | 6.31B | 5.26B | 5.93B | 7.01B | 2.38B |
Balance Sheet | ||||||
| Total Assets | 1.63T | 1.52T | 1.48T | 1.51T | 1.38T | 1.35T |
| Cash, Cash Equivalents and Short-Term Investments | 867.54B | 509.67B | 538.31B | 542.42B | 521.33B | 457.38B |
| Total Debt | 143.98B | 185.75B | 176.55B | 183.37B | 166.59B | 144.02B |
| Total Liabilities | 1.55T | 1.45T | 1.41T | 1.44T | 1.31T | 1.28T |
| Stockholders Equity | 76.39B | 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 | -1.39B | 696.00M | 107.00M | 2.73B |
Barclays Technical Analysis
Positive
22.38
Price Trends
23.25
Positive
21.81
Positive
19.53
Positive
Market Momentum
0.86
Positive
69.70
Neutral
52.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCS, the sentiment is Positive. The current price of 22.38 is below the 20-day moving average (MA) of 25.20, below the 50-day MA of 23.25, and above the 200-day MA of 19.53, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 69.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $68.83B | 10.00 | 14.58% | 3.67% | 7.43% | 30.31% | |
78 Outperform | $274.99B | 16.93 | 8.66% | 4.14% | -9.54% | -22.46% | |
77 Outperform | $89.95B | 11.90 | 9.44% | 1.71% | 17.50% | 49.25% | |
72 Outperform | $80.46B | 12.70 | 11.71% | 4.14% | 2.20% | -0.17% | |
72 Outperform | $175.03B | 11.84 | 12.54% | 1.85% | -15.34% | 16.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $217.07B | 17.06 | 6.88% | 1.94% | -0.62% | 105.57% |
* Financial Sector Average
BCS
Barclays
26.07
13.57
108.51%
C
Citigroup
120.60
49.80
70.34%
HSBC
HSBC Holdings
80.49
34.06
73.35%
ING
ING Groep
28.14
13.10
87.09%
NWG
NatWest Group
17.47
8.51
94.98%
SAN
Banco Santander SA
11.93
7.38
162.20%
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.