UK stock report - Barclays

UK

Barclays in its biggest weekly gain in 2 months October 20, 2017 16:30 BST

NEWS BITES - EUROPE

Barclays PLC (L:BARC), the 4th largest Bank by market cap in the United Kingdom, has increased GBX3.70 (1.9%) from its last trading session of October 19 to close at GBX195.70. The rise has been propped up by firm volume of 1.1 times the average daily volume of 42.3 million shares. In the past week the shares have lifted 3.1%, the biggest weekly gain since September 14.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Low Performance Indicators

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Beta & Alpha, Aggregate Volumes, Prices and Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 REPORTED BUYING AND SELLING

SECTION 8 STOCK BUZZ

SECTION 1 BARCLAYS BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 19 multiplied by the P/NTA of 0.6 is 11.0. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ Over the last 3 years average annual compound growth rate of earnings per share was 16.3%. This is considered moderate.

1.2 Undervaluation [compared with sector average]:

+ Price/Earnings of 19 [21.2].

+ Price to Book of 0.6 [1.0].

+ Dividend yield of 1.5% [0.9%].

1.3 Technicals:

+ The price lifted 3.1% in the last week and climbed 5.3% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 191.81 minus the 26-day EMA of 191.53 is positive 0.28 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ The present value of GBP1,000 (PV1000) invested five years ago in Barclays is GBP1,151, including a capital gain of GBP17 and dividend reinvested of GBP135.

+ 5 years Multiplier in GBP = 1.151x

+ Compound Annual Growth Rate (CAGR) in GBP = 2.9%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Barclays is $US942, including a capital loss of $US168 and dividend reinvested of $US110.

+ 5 years ago GBP 1 equalled USD 1.61

+ 5 years Multiplier in USD = 0.942x

+ Compound Annual Growth Rate (CAGR) in USD = -1.2%

Oct 20, 2017: GBP 1 equals USD 1.32

1.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverGBP93.6 million (US$123.3 million)In Top 2%
Price Change %1.9In Top Quartile

SECTION 2 BARCLAYS BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 1.5%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 3.5% is 44.2%. This suggests the stock is overvalued in dividend yield terms.

+ Total Liabilities/EBITDA of 353.5 which compares unfavourably with the Joseph Piotroski benchmark of 5.

+ Net profit margin has averaged 6.7% in the last 3 years. This is lower than the sector average of 19.8% and suggests a low margin of safety.

+ As per the Du Pont analysis, Return on Equity is less than stellar at 4.0%. This is computed as net profit margin of 15.4% times asset turnover [sales/assets] of 0.01 times leverage factor [total assets/shareholders' equity] of 18.7.

2.2 Overvaluation [compared with sector average]:

+ Return on Equity 4.0% [4.6%].

+ Return on Assets 0.2% [0.4%].

2.3 Technicals:

Overbought/Bearish/Resistance Signals:

+ At GBX195.70 the price has risen above the upper Bollinger band resistance of GBX195.14, indicating a downside risk for it to fall back within the band.

+ The stock is overbought according to the Williams % R indicator of -0.2, suggesting the price is close to its 14-day high of GBX195.72.

2.4 Low Performance Indicators:

DescriptionValueRank In Market
Return on Assets [ROA] %0.2In Bottom 1%
Total Debt to Equity1.5In Bottom Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Barclays is at a discount of 25.8% to its 12-month high of GBX263.75 on December 02, 2016. It is also at a premium of 13.0% to the 12-month low of GBX173.12 on November 09, 2016.

+ The present value of GBP1,000 (PV1000) invested one year ago in Barclays is GBP1,098, comprising a capital gain of GBP83 and dividend reinvested of GBP15.

PV10001-week1-month1-year
BARC.L1,0311,0531,098
FTSE 100 Index9991,0201,071

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in BARC would have produced a return of 10.0%.

BARCClose (GBX)Dividends (GBX)Capital Gain / (Loss) %% YieldAnnual Return %
Oct 20195.738.31.710.0
1 Yr ago180.665.5(25.8)2.3(23.5)
2 Yrs ago243.476.522.53.325.8
3 Yrs ago198.685.61(21.6)2.2(19.3)
4 Yrs ago253.296.6731.63.535.0

Close 5 years ago GBX192.52

3.3 Beta & Alpha:

+ Beta: the Beta of Barclays stock is 1.1. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

+ Alpha: the Alpha of the stock is 6.7. The actual return of 15.57% exceeded the expected return of 8.9%, reflecting outperformance.

3.4 Aggregate Volumes, Prices and Turnover Period:

[Volume Index or VI in brackets; 1 is average]

+ London: BARC.L 47,803,754 [VI of 1.1] volume 96.17% of aggregate. Price: GBX195.70.

+ New York: BCS.NYSE 1,897,600 [VI of 0.5] volume 3.82% of aggregate. Price: $US10.14. Using the current exchange rate of USD1 equals 75.93GBX, The shares are at a 293.4% premium to the close price on London.

+ Aggregate volume: there were 49.7 million shares of Barclays worth GBP108.2 million traded today. The aggregate volume was 1.1 times average trading of 46.4 million shares.

The turnover rate in the 12 months to date was 67.8% (or a turnover period of 1 year 5 months). This average length of ownership of the stock at 74.0 times the average holding period of 7 days for stocks in the FTSE 100 Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 4 RANKING

4.1 Global Rank [out of 47,824 stocks] and Rank in the Europe Region [out of 8,439 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)43.9B30789
Total Assets (US$)1,598.7B317
Revenue (US$)19.2B726190
Net Profit (US$)2.7B34380
Return on Equity %4.022,5283,872
Net Profit Margin %15.47,5631,317
Price to Book0.64,617913
Price/Earnings18.611,5112,154
Yield %1.613,7112,594
PV$1000 (1Year) US$*1,17616,3083,520
US$* Change (1Year) %17.516,2533,551

* 1 year ago GBP 1 = USD 1.23

Oct 20, 2017: GBP 1 equals USD 1.32

4.2 Independent Ratings

Barclays PLC was ranked 13 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; unchanged over a year from the same rank 13 in 2014. Brand Finance valued the brand at US$14,179 million and ranked it Number 13 in Europe. Most of the brand valuation was for services such as credit cards.

It was ranked 15 in SNL's list of Top 100 Banks by Total Assets in 2016; a deterioration over a year from rank 10 in 2015.

It is the 166th largest by revenue in the Forbes Global 2000.

It was ranked 367 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2014. It had outstanding scores of 11.4% in Energy productivity, 9.2% in Water productivity and 7.6% in Carbon productivity.

It is the 488th largest by profit in the FT Global 500.

It is placed 763/1287 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 41.

SECTION 5 BARCLAYS FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)19.318.643.6
Pretax (USD B)4.31.53
Net (USD)2.8B(65.2M)(231.5M)
EPS (GBP)0.103(0.019)(0.01)

There was a turnaround in Net profit from a loss of US$65.2 million in 2015 to net profit of US$2.8 billion in 2016. Earnings Per Share (EPS) improved from a loss of 1.90 GBX to 10.30 GBX.

5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Unfavourable Changes:

+ Retained earnings to total assets down 9% to 2.5%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (GBX)
20 Oct 20173
20 Oct 20165.5
20 Oct 20156.5
20 Oct 20145.61
20 Oct 20136.67

SECTION 6 BARCLAYS PROFILE

6.1 Activities

Barclays PLC provides various financial products and services in Europe, the United States, Africa, and Asia. It offers retail and commercial banking, credit cards, investment banking, wealth management, and investment management services. The companys products include current account and savings products, Woolwich branded mortgages, unsecured loans, protection products, general insurance, credit cards, Sharia-compliant products, installment finance and commercial property finance, commercial loans, and personal loans. It also offers money transmission, international and private banking, investment management, fiduciary, and brokerage services, as well as payment solutions and mobile banking services. In addition, the company provides fixed income, currency and commodities, foreign exchange, emerging markets, money markets, and credit services; equities, which include cash and equity derivatives and prime services; investment banking products and services that comprise financial advisory, and equity and debt underwriting; and advisory services. It serves individual, commercial, corporate, institutional, retail, and mass affluent customers. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1896 and is headquartered in London, the United Kingdom.

6.2 Industry & Sector

Classification LevelName of Sector
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials

6.3 Top Management

The chairman is John Mcfarlane and the chief executive officer is Jes Staley.

6.4 Issued Capital

Based on 17,035,227,684 issued shares the market capitalisation is GBP33.3 billion (US$43.9 billion).

SECTION 7 REPORTED BUYING AND SELLING

Insider Buying and Selling

Reported Buying:

September 13: Barclays director buys

Barclays (L:BARC) director Laura Lester bought 10,000 shares worth GBP19,227 ($US25,416) on September 13. The purchase price was GBP1.92. The shares hit a 12-day high on the day.

May 03: Barclays director buys

Barclays (L:BARC) director Ian Cheshire bought 50,000 shares worth GBP105,000 ($US135,671) on May 02. The purchase price was GBP2.10. The shares hit an 11-day low on the day.

Reported Selling:

May 03: Barclays director sells

Barclays (L:BARC) director Ashok Vaswani sold 650,230 shares worth GBP1,378,488 ($US1,781,144) on April 28. The selling price was GBP2.12. The shares hit a seven-day low on the day.

SECTION 8 STOCK BUZZ

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October 06: Barclays: Publication of Final Terms

The following final terms (the "Final Terms") are available for viewing:

Final Terms in relation to Barclays PLC's issue of Pound1,000,000,000 2.375 per cent. Reset Notes due 2023 under the Barclays PLC and Barclays Bank PLC Pound60,000,000,000 Debt Issuance Programme.

Please read the disclaimer below "Disclaimer - Intended Addressees" before attempting to access this service, as your right to do so is conditional upon complying with the requirements set out below.

September 26: Barclays: Form 8.5 (EPT/NON-RI) - VANTIV INC

1. KEY INFORMATION (a) Name of exempt principal trader: BARCLAYS CAPITAL SECURITIES LTD

(b) Name of offeror/offeree in relation to whose VANTIV INC

relevant securities this form relates:

(c) Name of the party to the offer with which exempt WORLDPAY GROUP PLC principal trader is connected

(d) Date position held/dealing undertaken: 25 September 2017

September 26: Barclays: Form 8 (DD) - VANTIV INC

1. KEY INFORMATION (a) Full name of discloser: Barclays PLC. (b) Owner or controller of interest and short positions disclosed, if different from 1

(a): (c) Name of offeror/offeree in relation to whose

VANTIV INC relevant securities this form relates:

(d) Status of person making the disclosure: CONNECTED TO OFFEREE

September 25: BARCLAYS: FORM 8 (DD) - VANTIV INC

(a) Full name of discloser: Barclays PLC. (b) Owner or controller of interest and short positions disclosed, if different from 1(a): (c) Name of offeror/offeree in relation to whose VANTIV INC relevant securities this form relates:

September 22: BARCLAYS: Form 8.5 (EPT/NON-RI) - VANTIV, INC

(a) Name of exempt principal trader: BARCLAYS CAPITAL SECURITIES LTD (b) Name of offeror/offeree in relation to whose VANTIV INC relevant securities this form relates: (c) Name of the party to the offer with which exempt WORLDPAY GROUP PLC principal trader is connected

Contact: 44-20-71161000

Physical Address: 1 Churchill Place, Canary Wharf, London, E14 5HP, United Kingdom

State/Province/Country: United Kingdom

Country of Incorporation: United Kingdom

Exchange: London Stock Exchange

ISIN: GB0031348658

L:BARC; LON:BARC; LN:BARC; BARC.L

PermID: 4297546630

Barclays Plc

Source: www.BuySellSignals.com