UK stock report - Barclays
Barclays rises 1.6% from 14-day low June 23, 2017 16:30 BST
NEWS BITES - EUROPE
Barclays PLC (L:BARC), the 3rd largest Bank by market cap in the United Kingdom, was up 1.6% from its 14-day low of GBX194.40 on June 23. Its Williams % R is -83.9 which suggests it is oversold, a bullish signal. Its Relative Strength Index [RSI] is 25.6. An RSI reading of between 0 and 30 suggests the stock is close to its 14-day low, which is also a bullish signal. The stock price has increased GBX1.55 (0.8%) from its last trading session of June 22 to close at GBX197.55. Compared with the FTSE 100 Index which fell 15.2 points (0.2%) in the day, the relative price increase was 1.0%. The volume was 0.7 times the average daily trading volume of 51.4 million shares.
BARCLAYS BULLISH SIGNALS
Undervaluation [compared with sector average]:
+ Price to Book of 0.6 [2.1].
+ The Relative Strength Index (RSI) of 25.6 has breached the oversold line of 30, suggesting the price decrease of 5.7% in the last 14 days is unusually high.
+ The stock is oversold according to the Williams % R indicator of -83.9, suggesting the price is close to its 14-day low of GBX194.40.
1.3 High Performance Indicators:
|Description||Value||Rank In Market|
|Today's Turnover||GBP75.6 million (US$95.7 million)||In Top 2%|
|Price Change %||0.8||In Top Quartile|
BARCLAYS BEARISH SIGNALS
+ 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 3.7% is 41.4%. 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 20% 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 0.02 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%].
+ Dividend yield of 1.5% [3.0%].
2.3 Low Performance Indicators:
|Description||Value||Rank In Market|
|Total Debt to Equity||1.8||In Bottom 8%|
|Return on Assets [ROA] %||0.2||In Bottom 1%|
PRICE VOLUME DYNAMICS
+ Volume: there were 38,261,179 shares worth GBP75.6 million (US$95.7 million) traded today. In the past week, volume was 0.6 times average and the shares were down 2.8%.
+ Barclays is at a discount of 25.5% to its 12-month high of GBX265.02 on December 02, 2016. It is also at a premium of 65.5% to the 12-month low of GBX119.33 on June 27, 2016.
+ The present value of GBP1,000 (PV1000) invested one year ago in Barclays is GBP1,088, comprising a capital gain of GBP72 and dividend reinvested of GBP16.
|FTSE 100 Index||995||984||1,171|
+ The present value of GBP1,000 (PV1000) invested twenty years ago in Barclays is GBP1,052, including a capital loss of GBP92 and dividend reinvested of GBP145.
+ 20 years Multiplier in GBP = 1.052x
+ Compound Annual Growth Rate (CAGR) in GBP = 0.2%
Jun 23, 2017: GBP 1 equals USD 1.27
3.2 Moving Annual Return
|BARC||Close (GBX)||Dividends (GBX)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||184.21||5.5||(29.4)||2.1||(27.3)|
|2 Yrs ago||260.81||6.5||19.2||3||22.2|
|3 Yrs ago||218.78||5.64||(7.5)||2.4||(5.2)|
|4 Yrs ago||236.63||6.67||44.1||4.1||48.2|
+ Beta: the Beta of Barclays stock is 0.5. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
3.4 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 71.8% (or a turnover period of 1 year 4 months). This average length of ownership of the stock at 69.5 times the average holding period of 7 days for stocks in the FTSE 100 Index suggests a larger number of core investors, making a long-term investment safer.
4.1 Global Rank [out of 47,450 stocks] and Rank in the Europe Region [out of 8,291 stocks]
|Description||Value||Global Rank||In Eur Region|
|Total Assets (US$)||1,535.7B||30||6|
|Net Profit (US$)||2.1B||451||93|
|Return on Equity %||4.0||21,909||3,728|
|Net Profit Margin %||15.4||7,353||1,275|
|Price to Book||0.6||5,784||1,054|
|PV$1000 (1Year) US$*||938||26,241||4,517|
|US$* Change (1Year) %||-5.6||27,091||4,616|
* 1 year ago GBP 1 = USD 1.47
Jun 23, 2017: GBP 1 equals USD 1.27
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 438/615 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 29.
5.1 Financials Summary
|Year ended||Dec 2016||Dec 2015||Dec 2014|
|Sales (USD B)||30.3||30.3||41.8|
|Pretax (USD B)||4.1||1.5||2.9|
5.2 Trailing 12 Months Dividends
|Trailing 12 Months To||Value (GBX)|
|23 Jun 2017||3|
|23 Jun 2016||5.5|
|23 Jun 2015||6.5|
|23 Jun 2014||5.64|
|23 Jun 2013||6.67|
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 Level||Name of Sector|
|Business Sector||Banking & Investment Services|
|Industry Group||Banking Services|
6.3 Top Management
The chairman is John Mcfarlane and the chief executive officer is Jes Staley.
6.4 Issued Capital
Based on 17,030,000,000 issued shares the market capitalisation is GBP33.6 billion (US$42.6 billion).
REPORTED BUYING AND SELLING
Insider Buying and Selling
May 03: Barclays director buys
Barclays (L:BARC) director Ian Cheshire bought 50,000 shares worth GBP105,000 ($US135,671) on May 02. The purchase price was GBP2.10. The shares hit an 11-day low on the day.
May 03: Barclays director sells
Barclays (L:BARC) director Ashok Vaswani sold 650,230 shares worth GBP1,378,488 ($US1,781,144) on April 28. The selling price was GBP2.12. The shares hit a seven-day low on the day.
March 20: Barclays director sells
Barclays (L:BARC) director C. S. Venkatakrishnan sold 417,676 shares worth GBP958,984 ($US1,184,058) on March 17. The selling price was GBP2.30. The shares hit a one-month high on the day.
8.1 Latest Buzz
|Jun 22, 2017||Weatherford International PLC (WFT) Upgraded to “ Overweight” at Barclays PLC||BNB Daily (blog)||Jun 22, 2017||Market Fallers: Barclays PLC, Carnival plc, Experian plc||DirectorsTalk Interviews||Jun 22, 2017||George Guvamatanga thwarted workers\u0026#39; bid for Barclays takeover: Documents||Nehanda Radio||Jun 22, 2017||Tougher regulation spells headache for Lloyds Banking and Barclays says..||Proactive Investors UK||Jun 22, 2017||Black Stone Minerals, LP (BSM) Given “ Overweight” Rating at Barclays PLC||The Cerbat Gem||Jun 22, 2017||Barclays PLC (BARC.L) Needle Moving -1.55%||The Times||Jun 22, 2017||Let\u0026#39; s Get Technical With Barclays PLC (BCS)||USA Commerce Daily|
|Jun 21, 2017||Barclays PLC (BARC.L) Moves -1.26%||Ozark Times|
|Jun 20, 2017||Barclays PLC (BCS) vs. Banco Latinoamericano de Comercio Exterior, (BLX) Head..||BBNS|
|Jun 19, 2017||Barclays PLC (GAZ) Seeing Increased Action in Session||Concord Register||Jun 19, 2017||Tullow Oil plc (TLW) Stock Rating Reaffirmed by Barclays PLC||Sports Perspectives||Jun 19, 2017||Investor\u0026#39; s Alert on Worth Watching Stocks : Barclays PLC (ADR) (NYSE:BCS..||Stocks In Focus (press release)||Jun 19, 2017||Barclays PLC (BCS) Downgraded by BidaskClub||Transcript Daily|
8.2 Corporate Wire
To view Recent Company Headlines, click here
June 20: SFO charges Barclays
June 01: Barclays: Total Voting Rights
June 01: Barclays: Proposed placing of ord shares in BAGL
June 01: Terms of separation with Barclays Africa signed
June 01: Barclays: Placing of 286m ord shares in BAGL
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
L:BARC; LON:BARC; LN:BARC; BARC.L