Is it a good company at a reasonable price? For a Canadian, following international stocks is complex as you need to keep track of the stock using 3 currencies, this includes buying ADRs on the US stock market. This UK bank puts out its annual statement using UK Pounds. The ADRs are priced in US$ and living in Canada, we have CSN$. I used to have a number of international stocks, but no longer. This bank has not done well for shareholders. If you look at the total return paragraph below, this bank has not been a good long term investment for the past 25 years. People who bought 5 years ago have done well again.
I do not own this stock of Barclays PLC ADR (LSE-BARC, NYSE-BCS). I bought this stock when Barrett took over in 2000. Barrett used to run Bank of Montreal in Canada. At that time, it was a good dividend paying stock and I thought it would give me some geographical diversifications. I sold it in 2017 as I had lost faith in this bank making me any money. At that time, I had a total return of 1.25% with a capital loss of 4.92% and dividends of 6.17%. I had had the stock for almost 18 years.
When I was updating my spreadsheet, I noticed I bought this stock as an ADR in 2000. If I had kept it, I would have, to date, a capital loss of 2% per year over the 25 years. I would probably have had a positive return because of dividends. This is the only international stock that I am currently following.
If you had invested in this company in December 2014, for $1,005.67 you would have bought 67 shares at $15.01 per share. In December 2024, after 10 years you would have received $173.11 in dividends. The stock would be worth $890.43. Your total return would have been $1,063.54. This would be a total return of 0.60% per year with 1.21% from capital loss and 1.81% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $15.01 | $1,005.67 | 67 | 10 | $173.11 | $890.43 | $1,063.54 |
The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.03% based on dividends of £0.084 and stock price of £2.773. The 5, 10 year and historical median dividend yields are also moderate at 3.54%, 2.69% and 3.41%. The dividend growth is low (below 8% per year) at 3.2% per year over the past 5 years. Dividends are paid twice yearly with a larger dividend paid at the beginning of the year based on how the company did in the past year and a second smaller dividend paid near the end of the year. Dividends are generally paid in April and September each year. Over the past 31 years, this bank has increased the annual dividends 23 times and decreased them 4 times.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 24% with 5 year coverage at 18%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 13% with 5 year coverage at 2%. The DPR for 2024 for Free Cash Flow (FCF) is good at 19% with 5 year coverage at 18%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 23.56% | 18.44% |
| CFPS | 13.43% | 1.66% |
| FCF | 19.05% | 18.30% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is fine at 14.50 and currently at 14.02. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is good at 0.75 and currently at 0.75 because this is a more important ratio for a bank. The Liquidity Ratio for 2024 is fine for a bank at 1.05 and 1.05 currently. The bank gives a Leverage Ratio of 4.1% and this is good.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R+A | 0.75 | 0.75 |
| Lg Term R | 14.50 | 14.02 |
| Intang/GW | 0.21 | 0.21 |
| Debt Ratio | 1.05 | 1.05 |
| Leverage Bank | 4.1% | 4.1% |
The Total Return per year is shown below for years of 5 to 31 to the end of 2024 in UK£. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 3.22% | 10.47% | 8.27% | 2.20% |
| 2014 | 10 | 2.35% | 2.94% | 0.97% | 1.97% |
| 2009 | 15 | 15.06% | 1.77% | -0.19% | 1.96% |
| 2004 | 20 | -5.23% | -1.51% | -3.84% | 2.33% |
| 1999 | 25 | -1.67% | 1.62% | -1.91% | 3.54% |
| 1994 | 30 | 1.50% | 9.85% | 2.16% | 7.69% |
| 1993 | 31 | 2.51% | 8.98% | 1.96% | 7.02% |
The Total Return per year is shown below for years of 5 to 31 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 2.11% | 8.98% | 6.90% | 2.08% |
| 2014 | 10 | 0.15% | 0.60% | -1.21% | 1.81% |
| 2009 | 15 | 13.10% | 0.07% | -1.86% | 1.92% |
| 2004 | 20 | -6.45% | -3.81% | -5.99% | 2.17% |
| 1999 | 25 | -2.27% | 0.72% | -3.04% | 3.77% |
| 1994 | 30 | 0.76% | 9.92% | 1.38% | 8.54% |
| 1993 | 31 | 1.94% | 9.49% | 1.37% | 8.12% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 4.21, 5.94 and 7.80. The corresponding 10 year ratios are 4.38, 6.13 and 8.11. The corresponding historical ratios are 7.91, 9.79 and 12.14. The current P/E Ratio is 7.42 based on a stock price of $15.96 and EPS estimate for 2025 of $2.15 The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is done in US$.
I get a Graham Price of $28.26. The 10-year low, median, and high median Price/Graham Price Ratios are 0.34, 0.50 and 0.66. The current P/GP Ratio is 0.49 based on a stock price of $15.96. This ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is done in US$.
I get a 10-year median Price/Book Value per Share Ratio of 0.53. The current ratio is 0.78 based on a Book Value of $73,347M, Book Value per Share of $20.35 and a stock price of $15.96. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. A problem is that the ratios are very low. A good ratio is considered to be around 1.50 and these are a lot lower.
I get a 10-year median Price/Cash Flow per Share Ratio of 1.86. The current P/CF Ratio is 6.07 based on Cash Flow for the last 12 months of $8913M, Cash Flow per Share of $2.63 and a stock price of $15.96. The current ratio is 227% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$.
I get an historical median dividend yield of 2.86%. The current dividend yield is 2.80% based on dividends of $0.4476 and a stock price of $15.96. The current dividend yield is 2% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is done in US$.
I get a 10 year median dividend yield of 2.42%. The current dividend yield is 2.80% based on dividends of $0.4476 and a stock price of $15.96. The current dividend yield is 16% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is done in US$.
The 10-year median Price/Sales (Revenue) Ratio is 1.29. The current ratio is 1.53 based on Revenue estimate for 2025 of $37,644M, Revenue per Share of $10.45 and a stock price of 15.96. The current dividend yield is 18% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is done in US$.
Results of stock price testing is that the stock price is probably still reasonable. The 10 year median dividend yield test says that the stock price is reasonable and below the median. The P/S Ratio testing is saying that the stock price is reasonable but above the median. The other tests range from reasonable and below the median to expensive. I did the testing in US$ because it was easier and I would have gotten similar results in UK Pounds.
When I look at analysts’ recommendations, I find Strong Buy (8) and Buy (6) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $18.31 with a high of $21.84 and low of $12.25. The 12 months consensus stock price of $18.31 implies a total return of 17.53% with 14.72% from capital gains and 2.80% from dividends.
This bank is not well followed on Stock Chase. An entry for 2025 says Do Not Buy. He says that the bank is OK, but he does not like to exposure to UK economy. The prior entry is for 2021 and it is also a Do Not Buy. Stephen Wright on UK Motley Fool says now is a good time to buy UK stocks as they are out of favour and he suggests this bank. Keith Noonan on US Motley Fool reviews this stock and gives reasons investors should be excited. This bank’s fourth quarter for 2024 is reviewed on CNBC.
Talha Qureshi on Insider Monkey via Yahoo Finance says that BCS ranks number 10 on a list of cheap stocks to buy now. This stock is also reviewed by Zacks via Yahoo Finance. Simply Wall Street has one warning of unstable dividend track record. They are right in this case, the most recent decreases were in 2016 and 2017. In 2016, they also went from 4 dividends a year back to just 2.
Barclays PLC is a major global banking and financial services company. With 325 years of expertise in banking, and operating through an international network in many countries and regions in Europe, the U.S., Africa & Asia, the company provides a wide range of financial services to individuals, corporations, and institutions. The company has two divisions - Barclays UK and Barclays International. Its web site is here Barclays PLC ADR.
The last stock I wrote about was about was Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) ... learn more. The next stock I will write about will be AtkinsRealis (TSX-ATRL, OTC-SNCAF) ... learn more on Wednesday, April 30, 2025 around 5 pm. Tomorrow on my other blog I will write about TFSA Calculator.... learn more on Thursday, April 29, 2025 around 5 pm.
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