Virgin Money UK PLC
Virgin Money UK PLC Fundamental Analysis
Virgin Money UK PLC (VUK.AX) shows weak financial fundamentals with a PE ratio of 15.79, profit margin of 12.65%, and ROE of 3.21%. The company generates $1.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VUK.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakVUK.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVUK.AX trades at attractive valuation levels.
Growth Score
ModerateVUK.AX shows steady but slowing expansion.
Financial Health Score
ModerateVUK.AX shows balanced financial health with some risks.
Profitability Score
WeakVUK.AX struggles to sustain strong margins.
Key Financial Metrics
Is VUK.AX Expensive or Cheap?
P/E Ratio
VUK.AX trades at 15.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VUK.AX's PEG of 0.30 indicates potential undervaluation.
Price to Book
The market values Virgin Money UK PLC at 0.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does VUK.AX Make Money?
Net Profit Margin
For every $100 in sales, Virgin Money UK PLC keeps $12.65 as profit after all expenses.
Operating Margin
Core operations generate 32.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.21 in profit for every $100 of shareholder equity.
ROA
Virgin Money UK PLC generates $0.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Virgin Money UK PLC generates limited operating cash flow of $-278.15M, signaling weaker underlying cash strength.
Free Cash Flow
Virgin Money UK PLC generates weak or negative free cash flow of $-286.64M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.22 in free cash annually.
FCF Yield
VUK.AX converts -10.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How VUK.AX Stacks Against Its Sector Peers
| Metric | VUK.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.79 | 18.66 | Better (Cheaper) |
| ROE | 3.21% | 806.00% | Weak |
| Net Margin | 12.65% | -451.00% (disorted) | Strong |
| Debt/Equity | 2.86 | 1.00 | Weak (High Leverage) |
| Current Ratio | 5.22 | 662.02 | Strong Liquidity |
| ROA | 0.21% | -24409.00% (disorted) | Weak |
VUK.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Virgin Money UK PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical