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Barclays PLC BARC

Morningstar Rating
GBX 202.00 −2.00 (0.98%)
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Company Report

Barclays Is a Good Retail Franchise Stuck With an Investment Bank

In the U.K., Barclays operates what we believe to be a strong retail franchise underpinned by a market-leading share in credit cards. The international segment is dominated by a bulge-bracket investment bank, one of the last full-service global investment banks headquartered in Europe. It also includes a credit card and current account business in the U.S. and a global wholesale banking operation. Both segments contribute about equally to income.

Price vs Fair Value

BARC is trading at a 8% discount.
Price
GBX 192.24
Fair Value
GBX 792.00
Uncertainty
High
1-Star Price
GBX 763.60
5-Star Price
GBX 548.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Thanks to a reduction in risk-weighted assets, Barclays’ capital ratio has improved over the years.

Bears

Performance in its investment bank does not compensate for the high capital intensity in this business.

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News

Trading Information

Previous Close Price
GBX 204.00
Day Range
GBX 199.08205.00
52-Week Range
GBX 128.12206.70
Bid/Ask
GBX 0.00 / GBX 0.00
Market Cap
GBX 3.03 Tril
Volume/Avg
104.7 Mil / 73.7 Mil

Key Statistics

Price/Earnings (Normalized)
5.51
Price/Sales
1.28
Dividend Yield (Trailing)
4.19%
Dividend Yield (Forward)
4.19%
Total Yield
11.26%

Company Profile

Barclays is a universal bank headquartered in the United Kingdom. It operates via two principal segments; U.K. (38% of profit before tax) and International (71% of PBT). In its U.K. segment, the bank provides current accounts, mortgages, savings and investment management services, credit cards, and business banking services to retail clients and small and medium-size enterprises. The international segment includes a corporate bank offering banking solutions to large corporates, a bulge-bracket global investment bank, and a credit card and payments business. In 2022, Barclays generated roughly 60% of its income from the U.K. and 25% from the United States.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
92,400

Competitors

Valuation

Metric
BARC
VUK
LYG
Price/Earnings (Normalized)
5.517.546.76
Price/Book Value
0.530.580.67
Price/Sales
1.281.681.75
Price/Cash Flow
1.556.503.04
Price/Earnings
BARC
VUK
LYG

Financial Strength

Metric
BARC
VUK
LYG
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
BARC
VUK
LYG
Return on Assets (Normalized)
0.42%0.41%
Return on Equity (Normalized)
11.47%7.17%
Return on Invested Capital (Normalized)
Return on Assets
BARC
VUK
LYG
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