UK stock report - Barclays
Barclays rises for a second consecutive day, a two-day rise of 1.5% August 17, 2018 16:30 BST
NEWS BITES - EUROPE
Barclays PLC (L:BARC), the 3rd largest Bank by market cap in the United Kingdom, has risen 0.30 GBX (0.2%) for a second consecutive day on Friday. This brought its two-day rise to GBX2.68 (1.5%), compared with the FTSE 100 Index which rose 60.7 points (0.8%) in the two days for a relative price increase of 0.7%. Cumulative volume in the 2 days was 0.5 times the average 2-day volume of 51 million shares. Barclays' stock last traded at GBX182.48. Its MCap is GBP31.2 billion (US$39.7 billion).
Highlights in today's Report:
SECTION 1 BULLISH SIGNALS
SECTION 2 BEARISH SIGNALS
SECTION 3 PRICE VOLUME DYNAMICS
SECTION 4 RELATED NEWS
SECTION 5 REPORTED BUYING AND SELLING
SECTION 6 GLOBAL RANKING
SECTION 7 SUMMARY FINANCIALS
SECTION 8 PROFILE
SECTION 1 BARCLAYS BULLISH SIGNALS
+ The Money Flow Index [MFI] is 16.7 suggesting an oversold 14-day trend, being under 20. The Money Ratio of 0.2 suggests positive money flow was 0.2 times negative money flow.
+ The Stochastic indicator of 11.4 has pierced the oversold line of 20; this indicates the price is close to its 14-day low and is likely to revert to an uptrend.
High Performance Indicator and rank of Barclays in the United Kingdom market:
|Description||BARC Value||Rank In Market|
|Today's Trading Turnover||GBP16.3 million (US$20.7 million)||In Top 2%|
Undervaluation [compared with sector average]:
+ Price to Book of 0.6 [0.8].
+ Return on Equity 2.0% [1.0%].
+ Return on Assets 0.1% [0.1%].
SECTION 2 BARCLAYS BEARISH SIGNALS
+ The price decreased 1.9% in the last month. The fall has been exacerbated by firm volume of 1.2 times average for the month.
+ The 5.3% premium to 12-month low of GBX173.37 against the 16.0% discount to high of GBX217.25 suggests the stock continues to push for new lows.
+ The present value of GBP1,000 (PV1000) invested five years ago in Barclays is GBP872, including a capital loss of GBP228 and dividend reinvested of GBP100.
+ 5 years Multiplier in GBP = 0.872x
+ Compound Annual Growth Rate (CAGR) in GBP = -2.7%
Present Value of USD1,000 invested 5 years ago:
+ The present value of USD1,000 (PV1000) invested five years ago in Barclays is $US711, including a capital loss of $US371 and dividend reinvested of $US82.
+ 5 years ago GBP 1 equalled USD 1.56
+ 5 years Multiplier in USD = 0.711x
+ Compound Annual Growth Rate (CAGR) in USD = -6.6%
Aug 17, 2018: GBP 1 equals USD 1.27
Low Performance Indicator and rank of Barclays in the United Kingdom market:
|Description||BARC Value||Rank In Market|
|Return on Assets [ROA] %||0.1||In Bottom 1%|
+ The relative yield of BARC, defined by its yield of 2.5%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 2.8% is 89.5%. This suggests Barclays stock is overvalued in dividend yield terms.
+ Total Liabilities/EBITDA of 301.4 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ Net profit margin has averaged 8.3% in the last 3 years. This is lower than the sector average of 21% and suggests a low margin of safety.
2.3 Overvaluation [compared with sector average]:
+ Dividend yield of 2.5% [2.8%].
SECTION 3 BARCLAYS PRICE VOLUME DYNAMICS
3.1 Present Value of GBX1000 invested in the past:
+ The present value of GBP1,000 (PV1000) invested one year ago in Barclays is GBP968, comprising a capital loss of GBP54 and dividend reinvested of GBP22.
|FTSE 100 Index||986||986||1,023|
3.2 Aggregate Volumes and Prices:
[Volume Index or VI in brackets; 1 is average]
+ London: BARC.L 8,905,086 [VI of 0.2] volume 99.22% of aggregate. Price: GBX182.48.
+ Xetra: BCY.ETR 65,975 [VI of 0.9] volume 0.74% of aggregate. Price: EUR2.07. Using the current exchange rate of EUR1 equals 89.4659GBX, The shares are at a 1.4% premium to the close price on London.
+ Aggregate volume: there were 9 million shares of Barclays worth GBP16.4 million traded today. The aggregate volume was 0.2 times average trading of 51.1 million shares.
The turnover rate in the 12 months to date was 80.6% (or a turnover period of 1 year 2 months). This average length of ownership of the stock at 62.0 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.
3.3 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 2 out of 5 years.
|BARC||Close (GBX)||Dividends (GBX)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||192.87||3||23.6||1.9||25.5|
|2 Yrs ago||156.05||5.5||(39.2)||2.1||(37.0)|
|3 Yrs ago||256.48||6.5||29.3||3.3||32.6|
|4 Yrs ago||198.37||5.61||(16.1)||2.4||(13.7)|
Close 5 years ago GBX236.47
3.4 Beta & Alpha:
+ Beta: the Beta of Barclays stock is 0.6. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
+ Alpha: the Alpha of the stock is -8.2. The actual return of -6.3% fell short of the expected return of 1.9%, reflecting underperformance.
3.5 The Past Three Years
+ Barclays PLC (L:BARC), has fell GBX74.0 (or 28.9%) in the past three years to close at GBX182.48 today. Compared with the FTSE 100 Index which has risen 15.4% over the same period, this is a relative price change of -44.2%.
SECTION 4 BARCLAYS RELATED NEWS
+ BSS/News Bites:
Barclays PLC is placed 869/1346 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 36.
+ Vanguard Total World Stock ETF 2588:
The stock was one of 2588 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 5,373,482 shares in the period May 31, 2018 to Jun 30, 2018 worth $US-1,055,392,688 at an estimated Volume Weighted Average Price (VWAP) of $US196.4076. As at Jun 30, 2018, the Vanguard Total World Stock ETF held 0 shares worth $US0 or 5,473,340% by value of the ETF's portfolio [Ranked 1882 out of 2588 by value and 69 out of 154 for United Kingdom].
SECTION 5 BARCLAYS REPORTED BUYING AND SELLING
August 14: Barclays director buys
Barclays (L:BARC) director Crawford Gillies bought 3,694 shares worth GBP7,004 ($US8,943) on August 10. The purchase price was GBP1.90.
To view the previous 3 months' Releases in full, click here
SECTION 6 BARCLAYS GLOBAL RANKING
Global Rank [out of 47,645 stocks] and Rank of Barclays in the Europe Region [out of 8,516 stocks]
|Description||Value||Global Rank||In Eur Region|
|Total Assets (US$)||1,441.3B||32||8|
|Net Profit (US$)||(2.4B)||42,708||7,066|
|Return on Equity %||2.0||26,366||4,460|
|Net Profit Margin %||9.5||12,166||1,939|
|Price to Book||0.6||5,538||904|
|PV1000 (1Year) USD*||958||21,895||3,773|
|US$* Change (1Year) %||-8.2||21,725||3,751|
* 1 year ago GBP 1 = USD 1.29
Aug 17, 2018: GBP 1 equals USD 1.27
SECTION 7 BARCLAYS SUMMARY FINANCIALS
7.1 Dividend History
+ Trailing 12 months dividend has deteriorated from GBX5.6 in 2014 to GBX4.5 in 2018.
7.2 Financials Summary (Past 3 years)
|Year ended||Dec 2017||Dec 2016||Dec 2015|
|Sales (USD B)||34.1||34.7||17.7|
|Pretax (USD B)||4.5||4.1||1.5|
+ Net profit slumped from US$2.1 billion in 2016 to a loss of US$2.4 billion in 2017.
+ Earnings Per Share (EPS) fell from GBP10.40 to -GBP10.30.
SECTION 8 BARCLAYS PROFILE
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.
8.2 Top Management
The chairman is John Mcfarlane and the chief executive officer is Jes Staley.
8.3 Issued Capital
Based on 17,110,000,000 issued shares the market capitalisation is GBP31.2 billion (US$39.7 billion).
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
Economic Sector: Financials
Business Sector: Banking & Investment Services
Industry Group: Banking Services
L:BARC; LON:BARC; LN:BARC; BARC.L