VMUK LN

Virgin Money UK Plc.

Finance/Real Estate


Presented:11/28/2022
Price:£1.70
Cap:$3.64B
Current Price:£2.18
Cap:$4.33B

Presented

Date11/28/2022
Price£1.70
Market Cap$3.64B
Ent Value$13.94B
P/E Ratio5.25x
Book Value£4.03
Div Yield2.06%
Shares O/S1,394.03M
Ave Daily Vol2,543,667
Short IntN/A

Current

Price£2.18
Market Cap$4.33B
Virgin Money UK Plc engages in the provision of banking services. It operates through the following segments: Business, Personal and Mortgages. The company was founded in March 2016 and is headquartered in Glasgow, the United Kingdom.

Publicly traded companies mentioned herein: National Australia Bank Ltd (NAB AU), Virgin Money UK PLC (VMUK LN)

Highlights

The presenter is long shares of Virgin Money UK PLC (VMUK LN), a uniquely sizable challenger bank in the UK. Formerly Clydesdale Bank in Northern England and Scotland, the legacy brick and mortar bank was spun out of National Australia Bank (NAB AU) in 2016, acquired Virgin Money in 2018, rebranded to Virgin Money UK, and developed a national presence while pivoting to more of an online bank. The stock performed well right after its IPO, but several major headwinds to the UK banking industry over the past 5 years (persistently low interest rates, Brexit, COVID, recent sovereign debt crisis) have effectively cut the stock price in half, and its current GBp170 is right around the price at the time of the spin-off. He is bullish based on its attractive 0.5x P/TB valuation, the tailwind from rising interest rates that the Street is underappreciating, and an ongoing cost cutting program.

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Idea Discussion

Commentor 1 - 2 weeks ago

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