BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
NYSE:BUR - New York Stock Exchange, Inc. - GG00BMGYLN96 - Common Stock - Currency: USD
Taking everything into account, BUR scores 5 out of 10 in our fundamental rating. BUR was compared to 100 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BUR was profitable.
BUR had a positive operating cash flow in the past year.
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 3.35%, BUR is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
BUR has a Return On Equity (8.52%) which is in line with its industry peers.
BUR's Return On Invested Capital of 5.88% is fine compared to the rest of the industry. BUR outperforms 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BUR is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.52% | ||
| ROIC | 5.88% |
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 (33.41%) than 85.00% of its industry peers.
BUR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 73.56%, BUR belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
BUR's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 73.56% | ||
| PM (TTM) | 33.41% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BUR is destroying value.
BUR has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.35, we must say that BUR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, BUR is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
BUR has a debt to FCF ratio of 5.54. This is a neutral value as BUR would need 5.54 years to pay back of all of its debts.
BUR has a better Debt to FCF ratio (5.54) than 66.00% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that BUR is somewhat dependend on debt financing.
BUR's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. BUR outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.74
WACC7.9%
2.3 Liquidity
BUR has a Current Ratio of 11.33. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BUR (11.33) is better than 99.00% of its industry peers.
BUR has a Quick Ratio of 11.33. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
BUR has a better Quick ratio (11.33) than 99.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.33 | ||
| Quick Ratio | 11.33 |
3. Growth
3.1 Past
The earnings per share for BUR have decreased strongly by -35.17% in the last year.
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.
BUR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.28%.
BUR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.09% yearly.
EPS 1Y (TTM)-35.17%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%200%
Revenue 1Y (TTM)-17.28%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%168.31%
3.2 Future
The Earnings Per Share is expected to grow by 18.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.35% on average over the next years. This is quite good.
EPS Next Y41.55%
EPS Next 2Y24.77%
EPS Next 3Y18.88%
EPS Next 5YN/A
Revenue Next Year21.11%
Revenue Next 2Y13.47%
Revenue Next 3Y11.35%
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
A Price/Earnings ratio of 15.25 indicates a correct valuation of BUR.
Compared to the rest of the industry, the Price/Earnings ratio of BUR is on the same level as its industry peers.
BUR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 7.40, the valuation of BUR can be described as very cheap.
Based on the Price/Forward Earnings ratio, BUR is valued a bit cheaper than 72.00% of the companies in the same industry.
BUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BUR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 18.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y24.77%
EPS Next 3Y18.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, BUR is not a good candidate for dividend investing.
BUR's Dividend Yield is comparable with the industry average which is at 5.00.
With a Dividend Yield of 0.93, BUR pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
BUR pays out 13.18% of its income as dividend. This is a sustainable payout ratio.
DP13.18%
EPS Next 2Y24.77%
EPS Next 3Y18.88%
14.18
-0.41 (-2.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners59.45%
Inst Owner Change-0.03%
Ins Owners9.23%
Ins Owner Change0.14%
Market Cap3.10B
Analysts87.27
Price Target23.8 (67.84%)
Short Float %2.35%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.12
Dividend Growth(5Y)-0.83%
DP13.18%
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)0.02%
PT rev (3m)-6.21%
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)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 7.4 | ||
| P/S | 5 | ||
| P/FCF | 9.74 | ||
| P/OCF | 9.72 | ||
| P/B | 1.27 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY6.56%
EPS(NY)1.92
Fwd EY13.52%
FCF(TTM)1.46
FCFY10.27%
OCF(TTM)1.46
OCFY10.29%
SpS2.84
BVpS11.13
TBVpS10.52
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.52% | ||
| ROCE | 7.44% | ||
| ROIC | 5.88% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 6.62% | ||
| OM | 73.56% | ||
| PM (TTM) | 33.41% | ||
| GM | N/A | ||
| FCFM | 51.28% |
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%
ROICexcg growth 3Y47.97%
ROICexcg 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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 153.5% | ||
| Current Ratio | 11.33 | ||
| Quick Ratio | 11.33 | ||
| Altman-Z | 1.35 |
F-Score5
WACC7.9%
ROIC/WACC0.74
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)-35.17%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%200%
EPS Next Y41.55%
EPS Next 2Y24.77%
EPS Next 3Y18.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.28%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%168.31%
Revenue Next Year21.11%
Revenue Next 2Y13.47%
Revenue Next 3Y11.35%
Revenue Next 5YN/A
EBIT growth 1Y-11.19%
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