BURFORD CAPITAL LTD (BUR)
GG00BMGYLN96 - Common Stock
BUR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. BUR has only an average score on both its financial health and profitability. BUR is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make BUR suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year BUR was profitable.
In the past year BUR has reported a negative cash flow from operations.
BUR had positive earnings in 4 of the past 5 years.
In the past 5 years BUR reported 4 times negative operating cash flow.
1.2 Ratios
BUR's Return On Assets of 5.34% is amongst the best of the industry. BUR outperforms 81.00% of its industry peers.
BUR has a better Return On Equity (14.20%) than 64.00% of its industry peers.
BUR has a better Return On Invested Capital (6.80%) than 76.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BUR is below the industry average of 7.93%.
The last Return On Invested Capital (6.80%) for BUR is above the 3 year average (5.63%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 42.80%, BUR belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
BUR's Profit Margin has declined in the last couple of years.
BUR has a better Operating Margin (68.52%) than 92.00% 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 | 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
BUR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BUR has about the same amout of shares outstanding than it did 1 year ago.
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 1.36, we must say that BUR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BUR (1.36) is better than 66.00% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that BUR is somewhat dependend on debt financing.
BUR has a Debt to Equity ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.87
WACC7.81%
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.
The Current ratio of BUR (11.68) is better than 97.00% of its industry peers.
BUR has a Quick Ratio of 11.68. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
BUR has a better Quick ratio (11.68) than 97.00% of its industry peers.
| 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.
BUR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.69% yearly.
BUR shows a strong growth in Revenue. In the last year, the Revenue has grown by 240.48%.
The Revenue has been growing by 20.66% on average over the past years. This is a very strong growth!
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
BUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.24% yearly.
Based on estimates for the next years, BUR will show a small growth in Revenue. The Revenue will grow by 2.50% on average per year.
EPS Next Y4.2%
EPS Next 2Y26.35%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue Next Year-26.9%
Revenue Next 2Y-2.31%
Revenue Next 3Y2.5%
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.
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 7.80, the valuation of BUR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BUR indicates a rather cheap valuation: BUR is cheaper than 86.00% of the companies listed in the same industry.
BUR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.29.
BUR is valuated cheaply with a Price/Forward Earnings ratio of 7.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUR indicates a somewhat cheap valuation: BUR is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BUR to the average of the S&P500 Index (24.01), we can say BUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
82.00% of the companies in the same industry are more expensive than BUR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BUR's earnings are expected to grow with 21.24% in the coming years.
PEG (NY)1.86
PEG (5Y)0.61
EPS Next 2Y26.35%
EPS Next 3Y21.24%
5. Dividend
5.1 Amount
BUR has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 3.61, BUR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.19, BUR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 recently.
Dividend Growth(5Y)1.76%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
BUR pays out 8.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of BUR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.56%
EPS Next 2Y26.35%
EPS Next 3Y21.24%
BURFORD CAPITAL LTD
NYSE:BUR (11/22/2024, 8:27:28 PM)
After market: 13.8 0 (0%)13.8
+0.07 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 7.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.86
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 14.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 68.52% | ||
| PM (TTM) | 42.8% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 11.68 | ||
| Quick Ratio | 11.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)700%
EPS 3Y61.3%
EPS 5Y
EPS Q2Q%
EPS Next Y4.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y