BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - NYSE:BUR - GG00BMGYLN96 - Common Stock
8.96 USD
-0.1 (-1.1%)
9.08 USD
+0.12 (+1.34%)
We assign a fundamental rating of 4 out of 10 to BUR. BUR was compared to 98 industry peers in the Financial Services industry. BUR has only an average score on both its financial health and profitability. BUR has a decent growth rate and is not valued too expensively.
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
BUR has a better Return On Assets (3.82%) than 72.45% of its industry peers.
BUR has a Return On Equity of 9.66%. This is comparable to the rest of the industry: BUR outperforms 56.12% of its industry peers.
BUR has a better Return On Invested Capital (6.06%) than 69.39% 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 7.85%.
| 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 86.73% 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 93.88% of its industry peers.
BUR's Operating Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BUR is still 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.
BUR has a worse debt/assets ratio than last year.
2.2 Solvency
BUR has an Altman-Z score of 1.14. This is a bad value and indicates that BUR is not financially healthy and even has some risk of bankruptcy.
BUR's Altman-Z score of 1.14 is fine compared to the rest of the industry. BUR outperforms 60.20% of its industry peers.
BUR has a Debt/Equity ratio of 0.71. This is a neutral value indicating BUR is somewhat dependend on debt financing.
BUR has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.14 |
ROIC/WACC0.92
WACC6.55%
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.
BUR has a better Current ratio (8.23) than 95.92% 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 has a better Quick ratio (8.23) than 95.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.23 | ||
| Quick Ratio | 8.23 |
3. Growth
3.1 Past
The earnings per share for BUR have decreased strongly by -38.85% 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.
Looking at the last year, BUR shows a very negative growth in Revenue. The Revenue has decreased by -24.63% in the last year.
Measured over the past years, BUR shows a quite strong growth in Revenue. The Revenue has been growing by 8.09% on average per year.
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
Based on estimates for the next years, BUR will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.43% on average per year.
BUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.34% yearly.
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.
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 8.30 indicates a reasonable valuation of BUR.
BUR's Price/Earnings ratio is a bit cheaper when compared to the industry. BUR is cheaper than 72.45% 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 25.83.
Based on the Price/Forward Earnings ratio of 6.40, the valuation of BUR can be described as very cheap.
BUR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BUR is cheaper than 78.57% of the companies in the same industry.
BUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 6.4 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BUR's earnings are expected to grow with 17.43% in the coming years. This may justify a more expensive valuation.
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 1.31%.
The stock price of BUR dropped by -33.23% 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 4.94.
With a Dividend Yield of 1.31, BUR pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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.
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
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%
8.96
-0.1 (-1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-2.52%
Ins Owners9.16%
Ins Owner Change-0.15%
Market Cap1.96B
Revenue(TTM)652.28M
Net Income(TTM)241.90M
Analysts87.27
Price Target24.17 (169.75%)
Short Float %2.45%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-3.5%
PT rev (3m)12.01%
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)-9.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 6.4 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY12.05%
EPS(NY)1.4
Fwd EY15.63%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.98
BVpS11.44
TBVpS10.82
PEG (NY)N/A
PEG (5Y)N/A
Graham Number16.67
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%
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 Turnover0.1
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 | 1.14 |
F-ScoreN/A
WACC6.55%
ROIC/WACC0.92
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
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 4 / 10 to BURFORD CAPITAL LTD (BUR). This can be considered as Fairly Valued.
Can you provide the profitability details for BURFORD CAPITAL LTD?
BURFORD CAPITAL LTD (BUR) has a profitability rating of 4 / 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 16.95%.