BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - NYSE:BUR - GG00BMGYLN96 - Common Stock
8.59 USD
-0.13 (-1.49%)
8.6 USD
+0.01 (+0.12%)
We assign a fundamental rating of 4 out of 10 to BUR. BUR was compared to 97 industry peers in the Financial Services industry. BUR has an average financial health and profitability rating. BUR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BUR was profitable.
Of the past 5 years BUR 4 years were profitable.
In multiple years BUR reported negative operating cash flow during the last 5 years.
1.2 Ratios
BUR has a Return On Assets of 3.82%. This is in the better half of the industry: BUR outperforms 72.16% of its industry peers.
The Return On Equity of BUR (9.66%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 6.06%, BUR is doing good in the industry, outperforming 68.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BUR is in line with the industry average of 8.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 9.66% | ||
| ROIC | 6.06% |
ROA(3y)4.51%
ROA(5y)3.43%
ROE(3y)11.49%
ROE(5y)8.18%
ROIC(3y)6.79%
ROIC(5y)5.49%
1.3 Margins
Looking at the Profit Margin, with a value of 37.09%, BUR belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
In the last couple of years the Profit Margin of BUR has declined.
Looking at the Operating Margin, with a value of 73.83%, BUR belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
In the last couple of years the Operating Margin of BUR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 73.83% | ||
| PM (TTM) | 37.09% | ||
| GM | N/A |
OM growth 3Y28.04%
OM growth 5Y-1.3%
PM growth 3YN/A
PM growth 5Y-14.09%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BUR is still creating some value.
Compared to 1 year ago, BUR has more shares outstanding
The number of shares outstanding for BUR has been increased compared to 5 years ago.
The debt/assets ratio for BUR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that BUR is in the distress zone and has some risk of bankruptcy.
BUR has a better Altman-Z score (1.13) than 60.82% of its industry peers.
BUR has a Debt/Equity ratio of 0.71. This is a neutral value indicating BUR is somewhat dependend on debt financing.
BUR has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.93
WACC6.5%
2.3 Liquidity
BUR has a Current Ratio of 8.23. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
BUR has a Current ratio of 8.23. This is amongst the best in the industry. BUR outperforms 96.91% of its industry peers.
A Quick Ratio of 8.23 indicates that BUR has no problem at all paying its short term obligations.
BUR has a better Quick ratio (8.23) than 96.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.23 | ||
| Quick Ratio | 8.23 |
3. Growth
3.1 Past
BUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.85%.
Measured over the past years, BUR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.52% on average per year.
Looking at the last year, BUR shows a very negative growth in Revenue. The Revenue has decreased by -24.63% in the last year.
The Revenue has been growing by 8.09% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.85%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%62.5%
Revenue 1Y (TTM)-24.63%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%19.82%
3.2 Future
BUR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.43% yearly.
Based on estimates for the next years, BUR will show a quite strong growth in Revenue. The Revenue will grow by 12.34% on average per year.
EPS Next Y-1.19%
EPS Next 2Y6.65%
EPS Next 3Y17.43%
EPS Next 5YN/A
Revenue Next Year7.24%
Revenue Next 2Y8.33%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.95 indicates a rather cheap valuation of BUR.
Based on the Price/Earnings ratio, BUR is valued a bit cheaper than the industry average as 76.29% of the companies are valued more expensively.
BUR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
BUR is valuated cheaply with a Price/Forward Earnings ratio of 6.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUR indicates a rather cheap valuation: BUR is cheaper than 80.41% of the companies listed in the same industry.
BUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BUR's earnings are expected to grow with 17.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
BUR has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of BUR has falen by -35.90%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.50, BUR has a dividend in line with its industry peers.
With a Dividend Yield of 1.38, BUR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of BUR decreases each year by -0.83%.
BUR has paid a dividend for at least 10 years, which is a reliable track record.
BUR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.83%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
16.95% of the earnings are spent on dividend by BUR. This is a low number and sustainable payout ratio.
DP16.95%
EPS Next 2Y6.65%
EPS Next 3Y17.43%
8.59
-0.13 (-1.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-2.38%
Ins Owners9.16%
Ins Owner Change-0.15%
Market Cap1.88B
Revenue(TTM)652.28M
Net Income(TTM)241.90M
Analysts87.27
Price Target24.17 (181.37%)
Short Float %2.45%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.12
Dividend Growth(5Y)-0.83%
DP16.95%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.5%
PT rev (3m)13.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-30.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 6.13 | ||
| P/S | 2.88 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.75 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY12.57%
EPS(NY)1.4
Fwd EY16.31%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.98
BVpS11.44
TBVpS10.82
PEG (NY)N/A
PEG (5Y)N/A
Graham Number16.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 9.66% | ||
| ROCE | 7.67% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 6.67% | ||
| OM | 73.83% | ||
| PM (TTM) | 37.09% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)4.51%
ROA(5y)3.43%
ROE(3y)11.49%
ROE(5y)8.18%
ROIC(3y)6.79%
ROIC(5y)5.49%
ROICexc(3y)7.12%
ROICexc(5y)5.82%
ROICexgc(3y)7.34%
ROICexgc(5y)6.03%
ROCE(3y)8.6%
ROCE(5y)6.94%
ROICexgc growth 3Y47.97%
ROICexgc growth 5Y-10.78%
ROICexc growth 3Y48.71%
ROICexc growth 5Y-10.12%
OM growth 3Y28.04%
OM growth 5Y-1.3%
PM growth 3YN/A
PM growth 5Y-14.09%
GM growth 3YN/A
GM growth 5YN/A
F-ScoreN/A
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 8.23 | ||
| Quick Ratio | 8.23 | ||
| Altman-Z | 1.13 |
F-ScoreN/A
WACC6.5%
ROIC/WACC0.93
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.85%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%62.5%
EPS Next Y-1.19%
EPS Next 2Y6.65%
EPS Next 3Y17.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.63%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%19.82%
Revenue Next Year7.24%
Revenue Next 2Y8.33%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
EBIT growth 1Y-23.61%
EBIT growth 3Y73.93%
EBIT growth 5Y6.68%
EBIT Next Year9.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y177.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y178.9%
OCF growth 3YN/A
OCF growth 5YN/A
BURFORD CAPITAL LTD / BUR FAQ
Can you provide the ChartMill fundamental rating for BURFORD CAPITAL LTD?
ChartMill assigns a fundamental rating of 4 / 10 to BUR.
Can you provide the valuation status for BURFORD CAPITAL LTD?
ChartMill assigns a valuation rating of 5 / 10 to BURFORD CAPITAL LTD (BUR). This can be considered as Fairly Valued.
Can you provide the profitability details for BURFORD CAPITAL LTD?
BURFORD CAPITAL LTD (BUR) has a profitability rating of 4 / 10.
Can you provide the financial health for BUR stock?
The financial health rating of BURFORD CAPITAL LTD (BUR) is 4 / 10.
Can you provide the dividend sustainability for BUR stock?
The dividend rating of BURFORD CAPITAL LTD (BUR) is 3 / 10 and the dividend payout ratio is 16.95%.