BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUR - GG00BMGYLN96 - Common Stock
9.42 USD
+0.29 (+3.18%)
9.42 USD
0 (0%)
BUR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, BUR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BUR was profitable.
BUR had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: BUR reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.30%, BUR is in line with its industry, outperforming 52.04% of the companies in the same industry.
BUR's Return On Equity of 3.49% is on the low side compared to the rest of the industry. BUR is outperformed by 66.33% of its industry peers.
BUR has a Return On Invested Capital (3.67%) which is comparable to the rest of the industry.
BUR had an Average Return On Invested Capital over the past 3 years of 6.79%. This is in line with the industry average of 8.20%.
| 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
BUR has a better Profit Margin (18.42%) than 72.45% of its industry peers.
In the last couple of years the Profit Margin of BUR has declined.
BUR has a better Operating Margin (65.11%) than 88.78% of its industry peers.
BUR's Operating Margin has been stable in the last couple of years.
| 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
BUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BUR has more shares outstanding
BUR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BUR has a worse debt to assets ratio.
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 comparable to the rest of the industry: BUR outperforms 59.18% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BUR is somewhat dependend on debt financing.
BUR's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. BUR outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.56
WACC6.57%
2.3 Liquidity
A Current Ratio of 13.43 indicates that BUR has no problem at all paying its short term obligations.
The Current ratio of BUR (13.43) is better than 98.98% of its industry peers.
BUR has a Quick Ratio of 13.43. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of BUR (13.43) is better than 98.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.43 | ||
| Quick Ratio | 13.43 |
3. Growth
3.1 Past
The earnings per share for BUR have decreased strongly by -66.69% in the last year.
BUR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.52% yearly.
The Revenue for BUR has decreased by -36.57% in the past year. This is quite bad
The Revenue has been growing by 8.09% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 17.43% on average over the next years. This is quite good.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BUR is valuated rather expensively with a Price/Earnings ratio of 24.15.
Based on the Price/Earnings ratio, BUR is valued a bit more expensive than 61.22% of the companies in the same industry.
BUR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
Based on the Price/Forward Earnings ratio of 6.72, the valuation of BUR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUR indicates a somewhat cheap valuation: BUR is cheaper than 78.57% of the companies listed in the same industry.
BUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 6.72 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as BUR's earnings are expected to grow with 17.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, BUR has a reasonable but not impressive dividend return.
The stock price of BUR dropped by -32.71% 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 comparable with the industry average which is at 5.20.
Compared to the average S&P500 Dividend Yield of 2.41, BUR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of BUR decreases each year by -0.83%.
BUR has been paying a dividend for at least 10 years, so it has 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
47.06% of the earnings are spent on dividend by BUR. This is a bit on the high side, but may be sustainable.
DP47.06%
EPS Next 2Y6.65%
EPS Next 3Y17.43%
9.42
+0.29 (+3.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-0.58%
Ins Owners9.16%
Ins Owner Change-0.15%
Market Cap2.06B
Revenue(TTM)472.97M
Net Income(TTM)87.10M
Analysts87.27
Price Target21.25 (125.58%)
Short Float %3.57%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)-12.56%
PT rev (3m)-10.16%
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)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 6.72 | ||
| P/S | 4.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.83 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.39
EY4.14%
EPS(NY)1.4
Fwd EY14.87%
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
WACC6.57%
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 2Y6.65%
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 Year7.24%
Revenue Next 2Y8.33%
Revenue Next 3Y12.34%
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%.