BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - NYSE:BUR - GG00BMGYLN96 - Common Stock
10.72 USD
-0.18 (-1.65%)
10.72 USD
0 (0%)
Taking everything into account, BUR scores 4 out of 10 in our fundamental rating. BUR was compared to 98 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BUR had positive earnings in the past year.
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
The Return On Assets of BUR (3.82%) is better than 71.72% of its industry peers.
With a Return On Equity value of 9.66%, BUR perfoms like the industry average, outperforming 56.57% of the companies in the same industry.
BUR's Return On Invested Capital of 6.06% is fine compared to the rest of the industry. BUR outperforms 69.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BUR is in line with the industry average of 7.79%.
| 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
With an excellent Profit Margin value of 37.09%, BUR belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
In the last couple of years the Profit Margin of BUR has declined.
BUR has a Operating Margin of 73.83%. This is amongst the best in the industry. BUR outperforms 93.94% 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 | 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
BUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BUR has more shares outstanding than it did 1 year ago.
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 1.20, we must say that BUR is in the distress zone and has some risk of bankruptcy.
BUR's Altman-Z score of 1.20 is fine compared to the rest of the industry. BUR outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that BUR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, BUR is in line with its industry, outperforming 53.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.2 |
ROIC/WACC0.9
WACC6.71%
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.
The Current ratio of BUR (8.23) is better than 95.96% of its industry peers.
BUR has a Quick Ratio of 8.23. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
BUR's Quick ratio of 8.23 is amongst the best of the industry. BUR outperforms 95.96% 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.
BUR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.63%.
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
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
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 9.93 indicates a reasonable valuation of BUR.
66.67% of the companies in the same industry are more expensive than BUR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.40. BUR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.65 indicates a rather cheap valuation of BUR.
68.69% of the companies in the same industry are more expensive than BUR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, BUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 7.65 |
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
BUR has a Yearly Dividend Yield of 1.10%.
In the last 3 months the price of BUR has falen by -23.59%. 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 4.82, BUR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BUR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
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%
10.72
-0.18 (-1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-0.02%
Ins Owners9.16%
Ins Owner Change-0.15%
Market Cap2.35B
Analysts87.27
Price Target24.3 (126.68%)
Short Float %2.79%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)2.74%
PT rev (3m)2.08%
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)-11.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 7.65 | ||
| P/S | 3.6 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.94 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY10.07%
EPS(NY)1.4
Fwd EY13.07%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.98
BVpS11.44
TBVpS10.83
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 1.2 |
F-ScoreN/A
WACC6.71%
ROIC/WACC0.9
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