BCS Investment Analysis Report & Stock Research, Barclays PLC ADR

Barclays PLC ADR (BCS)

BCS Stock Report

2-Year Price History

View Larger BCS Chart
NYSE:BCS
$17.23
(2/9 1:51PM)
+4.8%
Open$17.13 Mkt Cap$34.4 Billion
High$17.41 52Wk High$25.68
Low$16.44 52Wk Low$3.12
Volume2.2 Million Avg Vol 10D3.0 Million

A Word Of Caution

Barclays PLC ADR (BCS) has experienced a very significant loss in market value recently. Clearly this drop in price will have an impact on the valuation but the recent events that caused the drop may have not been fully factored into our analysis yet. When a stock loses value very quickly it could be a sign that there is a fear of bankruptcy.

Please take a look at the RazorWire feed on the right hand side of the page. If Barclays PLC has been mentioned on business television or influential blogs recently a portion of that story should be displayed. This should help bring you up to speed on any major issues they are facing right now.

Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect significant factors surrounding this company.

Therefore, (and as always), check additional sources and available information regarding BCS before making an investment decision.

Ockham's Rating/Recommendation Summary

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BCS Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BCS through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.51x and 0.76x respectively.

Utilizing this range we can see that BCS’s current Price to Sales per share ratio of 0.78x is significantly below its average levels historically. In fact, with a current price of $17.11, BCS is a full 32% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for BCS.

BCS Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. BCS is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BCS to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 12.91 and a 5.95 low over the same period.

Now that BCS’s current price is $17.11 and its Price to Cash Earnings ratio is 7.41, we are very positive on its outlook from the cash earnings perspective. In fact, BCS is now trading a full 22% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why BCS has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

BCS Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

The estimated annual dividend for BCS is $0.13 producing a current dividend yield of 0.76%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from BCS against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from BCS over previous years was 96.36% while the lowest dividend yield was 0.51%. It is never a good sign for a company to pay significantly lower dividends, in this case 98.43% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison

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Barclays PLC ADR Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including BCS) 35.48 5.90 » 52.84 1.44 0.58 » 2.32 14.64% 19.59%
*10 year range does not include current year values
The Bank of Nova Scotia BNS $43.3 Billion $42.25 18.59 7.91 » 22.50 2.03 0.91 » 2.56 11.08% 20.42%
Westpac Banking Corp. WBK $37.7 Billion $99.48 18.92 8.73 » 22.52 1.85 0.85 » 2.59 21.47% 19.02%
Barclays PLC ADR BCS $34.4 Billion $16.44 7.41 1.19 » 17.38 0.78 0.10 » 2.26 13.04% 18.98%
Woori Finance Holdings Co Ltd ADS WF $26.6 Billion $33.05 78.52 2.00 » 141.85 0.69 0.17 » 1.84 12.25% 19.08%
Bank of Montreal BMO $26.5 Billion $48.10 17.36 6.95 » 21.53 1.80 0.72 » 2.20 6.61% 13.74%
Banco Bradesco SA ADS BBD $24.6 Billion $16.03 44.03 3.90 » 55.78 0.85 0.27 » 2.41 21.80% 25.70%
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The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Tech Trader Daily-Barron's

Turning Sales into Profit: Tech Trader Daily-Barron's Discussion of BCS's Margins

Profit margins for Barclays PLC ADR were a topic of discussion on Tech Trader Daily-Barron's recently which should be of great interest to BCS investors.

The Ockham valuation currently has a Fairly Valued stance on BCS because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BCS and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Barclays PLC ADR has actually sunk a bit in comparison to the others.

“… BARCLAYS Capital analyst Vijay Jayant today repeated his Equal Weight rating on AT&T, while trimming his 2010 EPS forecast to $2. 19 from $2. …”

Deal Breaker

See Why Barclays PLC ADR News Was Discussed on Deal Breaker

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Barclays PLC ADR.

Barclays PLC ADR receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; BCS has received less coverage from the financial media in business television and blogs.

“… So he doesn't really see the point of responding to anyone now, especially since BARCLAYS is the best bank ever. BARCLAYS - Bank - Financial Services Authority - Business - ... …”

Seeking Alpha Wall St Breakfast

Seeking Alpha Wall St Breakfast: Speaks to M&A Activity and Barclays PLC ADR

RazorWire captured a discussion on Seeking Alpha Wall St Breakfast that contained talk of M&A activity and BCS was mentioned as well.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Barclays PLC ADR has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on BCS because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BCS and think that it will generally perform in-line with the S&P 500.

“… The examiner was asked to investigate Lehman's collapse, its sale of key assets to BARCLAYS (BCS) and whether there were any signs of fraud, dishonesty or misconduct. …”

5:48P, Feb. 08,2010 BCS $16.35 Barclays PLC ADR
Fast Money

Stay Current on BCS's News on Fast Money

As always, the latest news on BCS is available to Ockham clients through RazorWire, and it was mentioned recently on Fast Money.

Barclays PLC ADR receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; BCS has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.

“… Underlying, BARCLAYS or whatever, held as core holder. > > we want to head back to the prop decks. B. K. Has been waiting patiently. …”

5:12P, Feb. 08,2010 BCS $16.40 Barclays PLC ADR
Fast Money

The Latest News for BCS Was Just on Fast Money

As always, the latest news on BCS is available to Ockham clients through RazorWire, and it was mentioned recently on Fast Money.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BCS has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Barclays PLC ADR will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BCS.

“… Stock pick nights, stay way from BARCLAYS. Std is actually something to guy here. > > hate to keep beat thing horse, if you missed it over the weekend I urge you to read it. …”

12:31P, Feb. 08,2010 BCS $16.70 Barclays PLC ADR
Power Lunch

News Breaking on Barclays PLC ADR on Power Lunch

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on BCS from Power Lunch.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about BARCLAYS PLC ADR

Learn About RazorWire?
12:03P, Feb. 08,2010 BCS $16.88 Barclays PLC ADR
Power Lunch

BCS News Mentioned on Power Lunch Recently

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on BCS from Power Lunch.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about BARCLAYS PLC ADR

Learn About RazorWire?
6:44P, Feb. 07,2010 BCS $17.11 Barclays PLC ADR
Naked Capitalism

Does Barclays PLC ADR Have a Debt Issue? See the Report from Naked Capitalism

In the aftermath of the credit crisis, debt is a key area investors should understand. A recent news story on Naked Capitalism talks about BCS's debt load.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BCS has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BCS. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Barclays PLC ADR will perform just about the same as the index.

“… BARCLAYS Capital says the net external liabilities of Greece are 87pc of GDP, or €208bn (£182bn). Spain is worse at 91pc (€950bn), and Portugal worse yet at 108pc (€177bn); ... …”

2:22A, Feb. 07,2010 BCS $17.11 Barclays PLC ADR
Zero Hedge

See Who is Talking About News from BCS on Zero Hedge

The latest news on Zero Hedge in regards to BCS came through on RazorWire recently.

Barclays PLC ADR receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; BCS has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.

“… From Foreign Exchange Research, BARCLAYS CapitalThe key lesson from the ERM crisis of 1992 and the Asian crisis of 1997 is that contagion can emerge quickly and often in ... …”

4:01P, Feb. 05,2010 BCS $17.11 Barclays PLC ADR
Closing Bell

Be Aware There is a Lot of News Today On BCS and This Instance Comes from Closing Bell

BCS has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.

Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Barclays PLC ADR will perform just about the same as the index. Please be aware that BCS is trading off $0.90 today, and is clearly being affected by the latest news. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BCS. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BCS has been less covered in the news compared to the rest of our universe of stocks.

“… Equities, and we have chief economist and strategy, also larry head of research at b BARCLAYS capital. So a very packed crowd. You can see. Bob, I will again with you. . …”

View All Barclays PLC ADR Stock News

Key Fundamentals

BCS - Barclays PLC ADR Fundamentals
Price (2/9 1:51PM) $17.23
Volume (2/9 1:51PM) 2.2 Million
Last Close Price $16.44
10 Day Average Volume 3.0 Million
13 Week Price Range $16.39 - $21.98
52 Week Price Range $3.12 - $25.68
LTM Revenue $60.1 Billion
 
Shares Outstanding (12/2008) 2.8 Billion
Market Capitalization $34.4 Billion
Shares Held By Institutions 43.3 Million
Institutional Holders 193
% Shares Held By Institutions 1.60%
Earnings Per Share (EPS) $3.35
P/E Ratio 4.90
Book Value Per Share $19.33
 
Gross Margin n/a%
Annual Dividend 0.13
Dividend Yield 0.80%
Beta 2.64
Fiscal Year Ends December

About Barclays PLC ADR

Barclays PLC ADR is considered to operate in the Financial sector. They specifically operate in the Foreign Money Center Banks business segment contained within the Banking industry.

The Company offers retail and commercial banking, credit cards, investment banking, wealth management and investment management services.