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Barclays PLC BARC

Morningstar Rating
GBX 163.74 +0.06 (0.04%)
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Company Report

Barclays Earnings: Performs Within Expectations; New Strategy Not Dramatically Different

Barclays reported fourth-quarter operating profits before tax of GBP 110 million versus GBP 1.310 billion a year ago after booking GBP 927 million in structural costs. Excluding these charges, performance was within expectations with income down 3% and a cost/income ratio of 71%. Barclays also published a new strategic update, which entails reshuffling divisions as well as some plans for smaller disposals. After Reuters reported that management had been engaging in various scenarios to address its lagging performance, in particular its investment bank, we see little has changed dramatically after going over the new strategic direction. Positively, Barclays intends to return at least GBP 10 billion in shareholder distributions between 2024 and 2026 with a preference for share buybacks following its new 12% return on tangible equity target by 2026. We maintain our GBX 210 per-share fair value estimate and no moat rating.

Price vs Fair Value

BARC is trading at a 22% discount.
Price
GBX 163.68
Fair Value
GBX 411.00
Uncertainty
High
1-Star Price
GBX 947.50
5-Star Price
GBX 285.00
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 163.68
Day Range
GBX 162.38164.88
52-Week Range
GBX 128.12198.86
Bid/Ask
GBX 160.50 / GBX 166.22
Market Cap
GBX 2.48 Tril
Volume/Avg
55.4 Mil / 62.1 Mil

Key Statistics

Price/Earnings (Normalized)
3.98
Price/Sales
0.90
Dividend Yield (Trailing)
4.70%
Dividend Yield (Forward)
4.70%
Total Yield
12.75%

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)
3.985.635.27
Price/Book Value
0.380.430.60
Price/Sales
0.901.251.49
Price/Cash Flow
1.464.85
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)
0.43%0.41%0.92%
Return on Equity (Normalized)
11.80%7.17%17.84%
Return on Invested Capital (Normalized)
Return on Assets
BARC
VUK
LYG
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