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Virgin Money UK PLC Shs Chess Depository Interests Repr 1 Shs VUK

Morningstar Rating
A$4.09 −0.01 (0.24%)
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Company Report

Virgin Money Likely to Be Acquired by Nationwide Building Society

Virgin Money UK (LSE: VMUK; ASX: VUK) consists of the CYBG business (demerged from National Australia Bank), and the Virgin Money brand in the UK The CYBG merger with Virgin Money UK virtually doubled the size of the bank's loan book and provided a foothold in the larger and faster growing London region. The bank's loan book is split 80% mortgages, 12% business loans, and 8% personal (including cards). We estimate Virgin has under 5% of the mortgage market, with its market share in Scotland and Yorkshire, closer to 10%. In cards, market share is higher at around 8%.

Price vs Fair Value

VUK is trading at a 4% discount.
Price
A$4.09
Fair Value
A$5.99
Uncertainty
High
1-Star Price
A$6.53
5-Star Price
A$7.41
Economic Moat
Fgmbx
Capital Allocation
Bwwxwnx

Bulls Say, Bears Say

Bulls

The combination of two midtier banks should deliver material operating cost savings.

Bears

Customers placing less emphasis on local branches could make it more difficult for Virgin to raise deposits in regional markets, putting pressure on funding costs.

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News

Trading Information

Previous Close Price
A$4.10
Day Range
A$4.094.11
52-Week Range
A$2.674.19
Bid/Ask
A$4.07 / A$4.10
Market Cap
A$5.30 Bil
Volume/Avg
4.3 Mil / 3.4 Mil

Key Statistics

Price/Earnings (Normalized)
7.54
Price/Sales
1.68
Dividend Yield (Trailing)
2.46%
Dividend Yield (Forward)
2.46%
Total Yield
6.32%

Company Profile

Virgin Money UK was formed through the merger between CYBG PLC and Virgin Money. After being divested by National Australia Bank in 2016, CYBG went through a restructuring and recapitalization process, with mortgages accounting for around 75% of its loan book. Following CYBG's merger with Virgin Money, the loan book has been reshaped again, with mortgages now accounting for 79% of total loans, personal loans around 9%, and SME and business loans around 12%.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Mid Value
Total Number of Employees
8,110

Competitors

Valuation

Metric
VUK
BCS
LYG
Price/Earnings (Normalized)
7.545.226.76
Price/Book Value
0.580.490.67
Price/Sales
1.681.211.75
Price/Cash Flow
6.501.463.04
Price/Earnings
VUK
BCS
LYG

Financial Strength

Metric
VUK
BCS
LYG
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
VUK
BCS
LYG
Return on Assets (Normalized)
0.41%0.43%
Return on Equity (Normalized)
7.17%11.80%
Return on Invested Capital (Normalized)
Return on Assets
VUK
BCS
LYG
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