Virgin Money Hldgs (Uk) Net Income surged on 26.0% in 2016 and Revenue jumped on 11.1%
28 Feb 2017 • About Virgin Money Hldgs (Uk) (
$VM.) • By InTwits
Virgin Money Hldgs (Uk) reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Virgin Money Hldgs (Uk) has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 4.0%.
- CAPEX is quite volatile: 8.6 in 2016, 10.2 in 2015, 10.8 in 2014, 1.5 in 2013, 23.6 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Virgin Money Hldgs (Uk) ($VM.) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 779 | 862 | 844 | 908 | 1,008 | 11.1% |
| Net Income | 218 | 179 | 9 | 111 | 140 | 26.0% |
Balance Sheet
|
|---|
| Cash | 1,605 | 1,424 | 851 | 889 | 786 | -11.5% |
| Short Term Debt | 3 | 389 | 847 | 1,299 | 2,133 | 64.2% |
| Long Term Debt | 2,267 | 1,470 | 1,594 | 2,039 | 2,600 | 27.5% |
Cash flow
|
|---|
| Capex | 24 | 2 | 11 | 10 | 9 | -15.7% |
Ratios
|
|---|
| Revenue growth | 455.9% | 10.7% | -2.1% | 7.6% | 11.1% | |
| Net Income Margin | 28.0% | 20.8% | 1.0% | 12.3% | 13.9% | 1.6% |
| CAPEX, % of revenue | 3.0% | 0.2% | 1.3% | 1.1% | 0.9% | -0.3% |
| ROIC | -0.1% | -0.3% | 2.2% | 3.3% | 3.5% | 0.2% |
| ROE | 33.9% | 19.3% | -0.1% | 7.8% | 8.6% | 0.8% |
Revenue and profitability
Virgin Money Hldgs (Uk)'s Revenue jumped on 11.1% in 2016.
Net Income marign increased slightly on 1.6 pp from 12.3% to 13.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Virgin Money Hldgs (Uk) had CAPEX/Revenue of 0.85%. Virgin Money Hldgs (Uk)'s CAPEX/Revenue increased slightly on 0.68 pp from 0.17% in 2013 to 0.85% in 2016. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low ROIC (3.50%) and ROE (8.64%). ROIC showed almost no change in 2016. ROE increased slightly on 0.80 pp from 7.8% to 8.6% in 2016.
Leverage (Debt)
Debt jumped on 41.8% in 2016 while cash dropped on 11.5% in 2016.
Appendix 1: Peers in Banks
Below you can find Virgin Money Hldgs (Uk) benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
| |
|---|
| Median (43 companies) | 17.8% | 4.2% | 12.1% | 4.2% | 4.0% |
|---|
| Virgin Money Hldgs (Uk) ($VM.) | | 10.7% | -2.1% | 7.6% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.2% | 2.8% | 2.2% | 2.5% | 1.9% |
|---|
| Virgin Money Hldgs (Uk) ($VM.) | 3.0% | 0.2% | 1.3% | 1.1% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | 11.1% |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 4.5% |
|---|
| Virgin Money Hldgs (Uk) ($VM.) | -0.1% | -0.3% | 2.2% | 3.3% | 3.5% |
