Barclays (BCS) AI Stock Analysis

• Market Cap: $79.14B
• Dividend Yield: 1.95%
• Average Volume (3M): 6.34M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.16
• Revenue Growth: 17.50%
• EPS Growth: 49.25%
• Country: US
• Employees: 93,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.56
• Shares Outstanding: 3,477,437,000
• 10 Day Avg. Volume: 6,218,187
• 30 Day Avg. Volume: 6,344,488
• PEG Ratio: 0.22
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 7.07
• Enterprise Value/Market Cap: -2.57
• Enterprise Value/Revenue: -7.46
• Enterprise Value/Gross Profit: -7.05
• Enterprise Value/Ebitda: -28.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $26.00 ▲(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 Business Overview & Revenue Model

Company Description

Barclays PLC is a British multinational bank and financial services company headquartered in London, England. Founded in 1690, Barclays operates primarily in two segments: Personal Banking and Corporate Banking. The bank provides a wide range of services including retail banking, investment banking, wealth management, and credit cards. Its core products encompass savings and checking accounts, loans, mortgages, investment management, and advisory services, catering to both individual and institutional clients worldwide.

How the Company Makes Money

Barclays 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 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

• Technical Analysis Sentiment: Positive
• Last Price: 22.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 21.61, above the 50-day MA of 20.95, and above the 200-day MA of 18.27, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCS.

Barclays Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	78 Outperform	$243.19B	15.02	8.66%	4.61%	-9.54%	-22.46%
NWG	78 Outperform	$67.08B	9.49	14.58%	3.94%	7.43%	30.31%
BCS	77 Outperform	$79.14B	10.26	9.44%	1.95%	17.50%	49.25%
ING	72 Outperform	$76.55B	11.63	11.71%	4.50%	2.20%	-0.17%
SAN	72 Outperform	$159.34B	10.64	12.54%	2.04%	-15.34%	16.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
C	67 Neutral	$183.40B	14.41	6.88%	2.26%	-0.62%	105.57%

Barclays Corporate Events

Barclays Earnings Call: Strong Growth Amid Challenges

Barclays’ recent earnings call painted a picture of robust financial health, characterized by significant income growth and an upgraded Return on Tangible Equity (RoTE) guidance. The bank’s early achievement of efficiency savings was a highlight, although challenges such as the motor finance provision and increased loan loss rate were notable concerns.

Barclays PLC Reports Strong Q3 2025 Earnings

Barclays PLC is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management, and investment management services. It operates primarily in the UK and US, offering a diverse range of financial products and services.