Virgin Money UK PLC (VMUK.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Virgin Money UK PLC provides banking products and services for consumers, and small and medium sized businesses under the Clydesdale Bank, Yorkshire Bank, and Virgin Money brands in the United Kingdom.The company offers savings and current accounts, mortgages, credit cards, and home loans; business loans, overdraft facilities, treasury solutions, and corporate and structured finance; asset finance and wealth referral services; risk management; international trade services; currency services, pensions, and investments and protection products; and home, car, travel, and life and critical illness insurance products.It also offers online and mobile banking, and telephone banking services.

The company was formerly known as CYBG PLC and changed its name to Virgin Money UK PLC in October 2019.Virgin Money UK PLC was founded in 1838 and is headquartered in Glasgow, the United Kingdom.

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1.b. Last Insights on VMUK

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1.c. Company Highlights

Last Price	217.6
Change Percentage	0.09%
Open	218
Previous Close	217.4
Market Cap ( Millions)	2821
Volume	97948127
Year High	219
Year Low	2.18
M A 50	211.64
M A 200	197.91

FCF Yield	12.02%
Dividend Yield	0.00%
ROE	3.59%
Debt / Equity	381.15%
Net Debt / EBIDTA	0.00%
Price To Book	0.6
Price Earnings Ratio	15.58
Price To FCF	8.32
Price To sales	0.7
EV / EBITDA	0

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Banking and Related Activities

Expected Growth: 7%

Virgin Money UK PLC's 7% growth in Banking and Related Activities is driven by increasing demand for digital banking services, strategic partnerships, and expansion into new markets. Additionally, the company's focus on customer experience, innovative product offerings, and cost savings initiatives have contributed to its growth.

7. Detailed Products

Current Accounts

Virgin Money UK PLC offers a range of current accounts that provide customers with a convenient and flexible way to manage their daily finances.

Savings Accounts

Virgin Money UK PLC provides a variety of savings accounts that help customers save money and earn interest.

Credit Cards

Virgin Money UK PLC offers a range of credit cards that provide customers with rewards, cashback, and other benefits.

Mortgages

Virgin Money UK PLC provides a range of mortgage products that help customers buy or remortgage their homes.

Personal Loans

Virgin Money UK PLC offers personal loans that provide customers with a lump sum of money to finance their personal expenses.

Insurance

Virgin Money UK PLC provides a range of insurance products, including life insurance, home insurance, and travel insurance.

Investments

Virgin Money UK PLC offers a range of investment products, including stocks and shares ISAs, and self-invested personal pensions.

8. Virgin Money UK PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Virgin Money UK PLC operates in a highly competitive market with many established players, which increases the threat of substitutes. However, the company's strong brand recognition and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

Virgin Money UK PLC's customers have a high bargaining power due to the availability of alternative financial services providers. This forces the company to maintain competitive pricing and high-quality services to retain customers.

Bargaining Power Of Suppliers

Virgin Money UK PLC has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The UK financial services market is highly regulated, which creates barriers to entry for new entrants. Additionally, Virgin Money UK PLC's established brand and customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The UK financial services market is highly competitive, with many established players competing for market share. Virgin Money UK PLC faces intense competition from traditional banks, fintech companies, and other financial services providers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	79.08%
Debt Cost	4.24%
Equity Weight	20.92%
Equity Cost	13.60%
WACC	6.20%
Leverage	378.00%

11. Quality Control: Virgin Money UK PLC passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

FinecoBank

A-Score: 7.0/10

Value: 3.6

Growth: 7.8

Quality: 8.8

Yield: 6.9

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

AIB

A-Score: 6.6/10

Value: 6.0

Growth: 6.2

Quality: 7.7

Yield: 6.9

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

Ringkjøbing Landbobank

A-Score: 6.3/10

Value: 4.7

Growth: 6.0

Quality: 7.6

Yield: 1.2

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

Avanza Bank

A-Score: 6.2/10

Value: 2.8

Growth: 6.9

Quality: 8.8

Yield: 6.2

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

BCP

A-Score: 6.1/10

Value: 6.4

Growth: 5.2

Quality: 6.6

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

Virgin Money UK

A-Score: 4.7/10

Value: 6.2

Growth: 7.7

Quality: 5.0

Yield: 3.1

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-10.44%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.20%

Virgin Money UK PLC - GB00BD6GN030

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VMUK

Have nothing to say about that one ...

1.c. Company Highlights

More Volatile

Cheaper

Higher Growth

Earnings Miss

Lower Quality

Revenues Beats

Revenues Miss

Lower Yield

Average Yield

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Banking and Related Activities

Expected Growth: 7%

7. Detailed Products

Current Accounts

Savings Accounts

Credit Cards

Mortgages

Personal Loans

Insurance

Investments

8. Virgin Money UK PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Virgin Money UK PLC passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.18$

Current Price

2.18$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA