BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUR - GG00BMGYLN96 - Common Stock
9.01 USD
-0.24 (-2.59%)
9.01 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BUR. BUR was compared to 98 industry peers in the Financial Services industry. BUR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BUR is quite expensive at the moment. It does show a decent growth rate.
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 1.30%. This is comparable to the rest of the industry: BUR outperforms 54.08% of its industry peers.
Looking at the Return On Equity, with a value of 3.49%, BUR is doing worse than 64.29% of the companies in the same industry.
BUR has a Return On Invested Capital of 3.67%. This is comparable to the rest of the industry: BUR outperforms 56.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BUR is in line with the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.49% | ||
| ROIC | 3.67% |
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
With a decent Profit Margin value of 18.42%, BUR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of BUR has declined.
The Operating Margin of BUR (65.11%) is better than 88.78% of its industry peers.
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 | 65.11% | ||
| PM (TTM) | 18.42% | ||
| 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.
The number of shares outstanding for BUR has been increased compared to 1 year ago.
Compared to 5 years ago, BUR has more shares outstanding
BUR has a worse debt/assets ratio than last year.
2.2 Solvency
BUR has an Altman-Z score of 1.01. This is a bad value and indicates that BUR is not financially healthy and even has some risk of bankruptcy.
BUR has a Altman-Z score of 1.01. This is in the better half of the industry: BUR outperforms 61.22% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BUR is somewhat dependend on debt financing.
BUR has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.56
WACC6.56%
2.3 Liquidity
BUR has a Current Ratio of 13.43. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BUR (13.43) is better than 100.00% of its industry peers.
A Quick Ratio of 13.43 indicates that BUR has no problem at all paying its short term obligations.
BUR has a Quick ratio of 13.43. This is amongst the best in the industry. BUR outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.43 | ||
| Quick Ratio | 13.43 |
3. Growth
3.1 Past
BUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.69%.
BUR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.52% yearly.
BUR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.57%.
Measured over the past years, BUR shows a quite strong growth in Revenue. The Revenue has been growing by 8.09% on average per year.
EPS 1Y (TTM)-66.69%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%-114.33%
Revenue 1Y (TTM)-36.57%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%-71.98%
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.
BUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.22% yearly.
EPS Next Y-1.19%
EPS Next 2Y4.67%
EPS Next 3Y17.43%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y7.24%
Revenue Next 3Y11.22%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
BUR is valuated rather expensively with a Price/Earnings ratio of 23.10.
BUR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BUR to the average of the S&P500 Index (26.77), we can say BUR is valued inline with the index average.
BUR is valuated cheaply with a Price/Forward Earnings ratio of 6.68.
78.57% of the companies in the same industry are more expensive than BUR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. BUR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 6.68 |
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 2Y4.67%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, BUR has a reasonable but not impressive dividend return.
The stock price of BUR dropped by -24.54% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BUR's Dividend Yield is a higher than the industry average which is at 2.36.
Compared to the average S&P500 Dividend Yield of 2.00, BUR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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.
The dividend of BUR decreased in the last 3 years.
Dividend Growth(5Y)-0.83%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
BUR pays out 47.06% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.06%
EPS Next 2Y4.67%
EPS Next 3Y17.43%
9.01
-0.24 (-2.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-0.5%
Ins Owners9.16%
Ins Owner Change-0.36%
Market Cap1.97B
Revenue(TTM)472.97M
Net Income(TTM)87.10M
Analysts87.27
Price Target21.7 (140.84%)
Short Float %4.18%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.12
Dividend Growth(5Y)-0.83%
DP47.06%
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)2.13%
PT rev (3m)-13.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 6.68 | ||
| P/S | 4.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.79 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.39
EY4.33%
EPS(NY)1.35
Fwd EY14.98%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.16
BVpS11.41
TBVpS10.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.49% | ||
| ROCE | 4.64% | ||
| ROIC | 3.67% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 4.24% | ||
| OM | 65.11% | ||
| PM (TTM) | 18.42% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| 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 | 13.43 | ||
| Quick Ratio | 13.43 | ||
| Altman-Z | 1.01 |
F-ScoreN/A
WACC6.56%
ROIC/WACC0.56
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)-66.69%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%-114.33%
EPS Next Y-1.19%
EPS Next 2Y4.67%
EPS Next 3Y17.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-36.57%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%-71.98%
Revenue Next Year4.05%
Revenue Next 2Y7.24%
Revenue Next 3Y11.22%
Revenue Next 5YN/A
EBIT growth 1Y-40%
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 3 / 10 to BURFORD CAPITAL LTD (BUR). This can be considered as Overvalued.
Can you provide the profitability details for BURFORD CAPITAL LTD?
BURFORD CAPITAL LTD (BUR) has a profitability rating of 3 / 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 47.06%.