BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
NYSE:BUR - New York Stock Exchange, Inc. - GG00BMGYLN96 - Common Stock - Currency: USD
BUR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. Both the profitability and the financial health of BUR get a neutral evaluation. Nothing too spectacular is happening here. BUR is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make BUR suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
BUR had positive earnings in the past year.
BUR had a negative operating cash flow in the past year.
BUR had positive earnings in 4 of the past 5 years.
BUR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
BUR has a better Return On Assets (5.34%) than 80.39% of its industry peers.
BUR has a better Return On Equity (14.20%) than 67.65% of its industry peers.
BUR has a Return On Invested Capital of 6.80%. This is in the better half of the industry: BUR outperforms 76.47% of its industry peers.
BUR had an Average Return On Invested Capital over the past 3 years of 5.63%. This is below the industry average of 7.94%.
The 3 year average ROIC (5.63%) for BUR is below the current ROIC(6.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 14.2% | ||
| ROIC | 6.8% |
ROA(3y)3.47%
ROA(5y)4.56%
ROE(3y)8.9%
ROE(5y)9.73%
ROIC(3y)5.63%
ROIC(5y)6.21%
1.3 Margins
BUR has a better Profit Margin (42.80%) than 90.20% of its industry peers.
In the last couple of years the Profit Margin of BUR has declined.
BUR has a Operating Margin of 68.52%. This is amongst the best in the industry. BUR outperforms 92.16% of its industry peers.
BUR's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 68.52% | ||
| PM (TTM) | 42.8% | ||
| GM | N/A |
OM growth 3Y4.25%
OM growth 5Y-1.35%
PM growth 3Y8.73%
PM growth 5Y-5.55%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BUR is destroying value.
Compared to 1 year ago, BUR has about the same amount of shares outstanding.
BUR has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, BUR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that BUR is in the distress zone and has some risk of bankruptcy.
BUR has a Altman-Z score of 1.37. This is in the better half of the industry: BUR outperforms 65.69% of its industry peers.
BUR has a Debt/Equity ratio of 0.80. This is a neutral value indicating BUR is somewhat dependend on debt financing.
BUR's Debt to Equity ratio of 0.80 is in line compared to the rest of the industry. BUR outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC0.88
WACC7.74%
2.3 Liquidity
BUR has a Current Ratio of 11.68. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
BUR's Current ratio of 11.68 is amongst the best of the industry. BUR outperforms 96.08% of its industry peers.
A Quick Ratio of 11.68 indicates that BUR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 11.68, BUR belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.68 | ||
| Quick Ratio | 11.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 700.00% over the past year.
The Earnings Per Share has been growing by 12.69% on average over the past years. This is quite good.
BUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 240.48%.
Measured over the past years, BUR shows a very strong growth in Revenue. The Revenue has been growing by 20.66% on average per year.
EPS 1Y (TTM)700%
EPS 3Y61.3%
EPS 5Y12.69%
EPS Q2Q%340%
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y20.66%
Sales Q2Q%258.36%
3.2 Future
The Earnings Per Share is expected to grow by 20.78% on average over the next years. This is a very strong growth
BUR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.81% yearly.
EPS Next Y9.96%
EPS Next 2Y25.86%
EPS Next 3Y20.78%
EPS Next 5YN/A
Revenue Next Year-22.94%
Revenue Next 2Y-2.36%
Revenue Next 3Y0.81%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.98, the valuation of BUR can be described as very cheap.
BUR's Price/Earnings ratio is rather cheap when compared to the industry. BUR is cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of BUR to the average of the S&P500 Index (28.47), we can say BUR is valued rather cheaply.
The Price/Forward Earnings ratio is 7.96, which indicates a rather cheap valuation of BUR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUR indicates a somewhat cheap valuation: BUR is cheaper than 75.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, BUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUR is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
BUR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BUR's earnings are expected to grow with 20.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)0.63
EPS Next 2Y25.86%
EPS Next 3Y20.78%
5. Dividend
5.1 Amount
BUR has a yearly dividend return of 0.84%, which is pretty low.
BUR's Dividend Yield is comparable with the industry average which is at 3.76.
With a Dividend Yield of 0.84, BUR pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of BUR has a limited annual growth rate of 1.76%.
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)1.76%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
8.56% of the earnings are spent on dividend by BUR. This is a low number and sustainable payout ratio.
BUR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.56%
EPS Next 2Y25.86%
EPS Next 3Y20.78%
BURFORD CAPITAL LTD
NYSE:BUR (2/5/2025, 10:44:01 AM)
14.13
+0.07 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.23%
Inst Owner Change0.03%
Ins Owners9.64%
Ins Owner Change-0.2%
Market Cap3.10B
Analysts87.27
Price Target22.1 (56.4%)
Short Float %1.7%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.13
Dividend Growth(5Y)1.76%
DP8.56%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
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)1.21%
PT rev (3m)1.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.53%
EPS NY rev (3m)5.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.41%
Revenue NY rev (3m)5.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.96 | ||
| P/S | 4.13 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.37 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)1.77
EY12.53%
EPS(NY)1.77
Fwd EY12.56%
FCF(TTM)-0.95
FCFYN/A
OCF(TTM)-0.94
OCFYN/A
SpS3.42
BVpS10.31
TBVpS9.7
PEG (NY)0.8
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 14.2% | ||
| ROCE | 8.61% | ||
| ROIC | 6.8% | ||
| ROICexc | 7.4% | ||
| ROICexgc | 7.67% | ||
| OM | 68.52% | ||
| PM (TTM) | 42.8% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.47%
ROA(5y)4.56%
ROE(3y)8.9%
ROE(5y)9.73%
ROIC(3y)5.63%
ROIC(5y)6.21%
ROICexc(3y)5.84%
ROICexc(5y)6.6%
ROICexgc(3y)6.03%
ROICexgc(5y)6.9%
ROCE(3y)7.13%
ROCE(5y)7.86%
ROICexcg growth 3Y24.46%
ROICexcg growth 5Y-5.89%
ROICexc growth 3Y25.44%
ROICexc growth 5Y-4.7%
OM growth 3Y4.25%
OM growth 5Y-1.35%
PM growth 3Y8.73%
PM growth 5Y-5.55%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 45.94% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.68 | ||
| Quick Ratio | 11.68 | ||
| Altman-Z | 1.37 |
F-Score5
WACC7.74%
ROIC/WACC0.88
Cap/Depr(3y)25.46%
Cap/Depr(5y)21.61%
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)700%
EPS 3Y61.3%
EPS 5Y12.69%
EPS Q2Q%340%
EPS Next Y9.96%
EPS Next 2Y25.86%
EPS Next 3Y20.78%
EPS Next 5YN/A
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y20.66%
Sales Q2Q%258.36%
Revenue Next Year-22.94%
Revenue Next 2Y-2.36%
Revenue Next 3Y0.81%
Revenue Next 5YN/A
EBIT growth 1Y309.53%
EBIT growth 3Y55.45%
EBIT growth 5Y19.03%
EBIT Next Year-23.64%
EBIT Next 3Y1.72%
EBIT Next 5YN/A
FCF growth 1Y40.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.07%
OCF growth 3YN/A
OCF growth 5YN/A