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 6 out of 10 in our fundamental rating. BUR was compared to 101 industry peers in the Financial Services industry. BUR has only an average score on both its financial health and profitability. BUR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, BUR could be worth investigating further for growth investing!.
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 the past 5 years BUR reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.32%, BUR is in the better half of the industry, outperforming 71.29% of the companies in the same industry.
BUR's Return On Equity of 11.48% is in line compared to the rest of the industry. BUR outperforms 47.52% of its industry peers.
The Return On Invested Capital of BUR (6.79%) is better than 75.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BUR is in line with the industry average of 7.60%.
The 3 year average ROIC (5.63%) for BUR is below the current ROIC(6.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 11.48% | ||
| ROIC | 6.79% |
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 34.81%, BUR belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
BUR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 68.83%, BUR belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
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 | 68.83% | ||
| PM (TTM) | 34.81% | ||
| 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.
The number of shares outstanding for BUR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BUR has about the same amount of shares outstanding.
The debt/assets ratio for BUR has been reduced compared to a year ago.
2.2 Solvency
BUR has an Altman-Z score of 1.34. This is a bad value and indicates that BUR is not financially healthy and even has some risk of bankruptcy.
BUR has a better Altman-Z score (1.34) than 63.37% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that BUR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, BUR perfoms like the industry average, outperforming 47.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.56
WACC12.06%
2.3 Liquidity
A Current Ratio of 11.68 indicates that BUR has no problem at all paying its short term obligations.
BUR's Current ratio of 11.68 is amongst the best of the industry. BUR outperforms 98.02% of its industry peers.
A Quick Ratio of 11.68 indicates that BUR has no problem at all paying its short term obligations.
The Quick ratio of BUR (11.68) is better than 98.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.68 | ||
| Quick Ratio | 11.68 |
3. Growth
3.1 Past
BUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 700.00%, which is quite impressive.
Measured over the past years, BUR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.69% on average per year.
Looking at the last year, BUR shows a very strong growth in Revenue. 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%-113.33%
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y20.66%
Sales Q2Q%-68.2%
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 decrease in Revenue. In the coming years, the Revenue will decrease by -0.16% 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-3.06%
Revenue Next 3Y-0.16%
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 12.03, BUR is valued correctly.
BUR's Price/Earnings ratio is a bit cheaper when compared to the industry. BUR is cheaper than 61.39% of the companies in the same industry.
BUR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 7.59, the valuation of BUR can be described as very cheap.
BUR's Price/Forward Earnings ratio is rather cheap when compared to the industry. BUR is cheaper than 81.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, BUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
BUR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BUR is cheaper than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BUR's earnings are expected to grow with 20.78% in the coming years.
PEG (NY)1.21
PEG (5Y)0.95
EPS Next 2Y25.86%
EPS Next 3Y20.78%
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 3.94, BUR has a dividend in line with its industry peers.
With a Dividend Yield of 0.91, BUR pays less dividend than the S&P500 average, which is at 2.33.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BUR decreased in the last 3 years.
Dividend Growth(5Y)1.76%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
5.31% of the earnings are spent on dividend by BUR. This is a low number and sustainable payout ratio.
The dividend of BUR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.31%
EPS Next 2Y25.86%
EPS Next 3Y20.78%
13.47
-0.24 (-1.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners61.62%
Inst Owner Change-2.09%
Ins Owners9.43%
Ins Owner Change-0.2%
Market Cap2.96B
Analysts88.33
Price Target22.03 (63.55%)
Short Float %1.35%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.13
Dividend Growth(5Y)1.76%
DP5.31%
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)-0.3%
PT rev (3m)-1.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)5.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 7.59 | ||
| P/S | 3.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.31 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)1.12
EY8.31%
EPS(NY)1.77
Fwd EY13.17%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.4
BVpS10.31
TBVpS9.7
PEG (NY)1.21
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 11.48% | ||
| ROCE | 8.6% | ||
| ROIC | 6.79% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 7.66% | ||
| OM | 68.83% | ||
| PM (TTM) | 34.81% | ||
| 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-ScoreN/A
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.68 | ||
| Quick Ratio | 11.68 | ||
| Altman-Z | 1.34 |
F-ScoreN/A
WACC12.06%
ROIC/WACC0.56
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%-113.33%
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%-68.2%
Revenue Next Year-22.94%
Revenue Next 2Y-3.06%
Revenue Next 3Y-0.16%
Revenue Next 5YN/A
EBIT growth 1Y-36.27%
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