BURFORD CAPITAL LTD (BUR)
GG00BMGYLN96 - Common Stock
We assign a fundamental rating of 6 out of 10 to BUR. BUR was compared to 99 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.
In the past year BUR has reported a negative cash flow from operations.
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
With a decent Return On Assets value of 5.34%, BUR is doing good in the industry, outperforming 79.80% of the companies in the same industry.
BUR has a better Return On Equity (14.20%) than 66.67% of its industry peers.
BUR has a better Return On Invested Capital (6.80%) than 75.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BUR is below the industry average of 7.84%.
The 3 year average ROIC (5.63%) for BUR is below the current ROIC(6.80%), indicating increased profibility in the last year.
| 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
BUR's Profit Margin of 42.80% is amongst the best of the industry. BUR outperforms 89.90% of its industry peers.
BUR's Profit Margin has declined in the last couple of years.
The Operating Margin of BUR (68.52%) is better than 91.92% 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.
Compared to 1 year ago, BUR has about the same amount of shares outstanding.
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 1.32, we must say that BUR is in the distress zone and has some risk of bankruptcy.
BUR's Altman-Z score of 1.32 is fine compared to the rest of the industry. BUR outperforms 65.66% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that BUR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, BUR is in line with its industry, outperforming 46.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.89
WACC7.66%
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.
With an excellent Current ratio value of 11.68, BUR belongs to the best of the industry, outperforming 95.96% of the companies in the same industry.
A Quick Ratio of 11.68 indicates that BUR has no problem at all paying its short term obligations.
BUR has a Quick ratio of 11.68. This is amongst the best in the industry. BUR outperforms 95.96% 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.
BUR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.69% yearly.
Looking at the last year, BUR shows a very strong growth in Revenue. The Revenue has grown by 240.48%.
BUR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.66% yearly.
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.
BUR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.50% yearly.
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
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
BUR is valuated cheaply with a Price/Earnings ratio of 7.28.
Based on the Price/Earnings ratio, BUR is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.09, BUR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.21, the valuation of BUR can be described as very cheap.
81.82% 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 23.45, BUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BUR indicates a rather cheap valuation: BUR is cheaper than 83.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
BUR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BUR's earnings are expected to grow with 21.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)0.57
EPS Next 2Y26.35%
EPS Next 3Y21.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, BUR is not a good candidate for dividend investing.
BUR's Dividend Yield is a higher than the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 2.30, BUR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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.
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
8.56% of the earnings are spent on dividend by BUR. This is a low number and sustainable payout ratio.
BUR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.56%
EPS Next 2Y26.35%
EPS Next 3Y21.24%
BURFORD CAPITAL LTD
NYSE:BUR (1/2/2025, 8:16:26 PM)
After market: 12.89 0 (0%)12.89
+0.14 (+1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.23%
Inst Owner Change0.09%
Ins Owners9.64%
Ins Owner Change0%
Market Cap2.83B
Analysts87.27
Price Target21.83 (69.36%)
Short Float %2.05%
Short Ratio5.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)1.76%
DP8.56%
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)-12.88%
PT rev (3m)-1.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.21 | ||
| P/S | 3.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.25 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)1.77
EY13.73%
EPS(NY)1.79
Fwd EY13.87%
FCF(TTM)-0.95
FCFYN/A
OCF(TTM)-0.94
OCFYN/A
SpS3.42
BVpS10.31
TBVpS9.7
PEG (NY)1.74
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 14.2% | ||
| ROCE | 8.61% | ||
| ROIC | 6.8% | ||
| ROICexc | 7.4% | ||
| ROICexgc | 7.67% | ||
| OM | 68.52% | ||
| PM (TTM) | 42.8% | ||
| 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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 45.94% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.68 | ||
| Quick Ratio | 11.68 | ||
| Altman-Z | 1.32 |
F-Score5
WACC7.66%
ROIC/WACC0.89
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%340%
EPS Next Y4.2%
EPS Next 2Y26.35%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y20.66%
Sales Q2Q%258.36%
Revenue Next Year-26.9%
Revenue Next 2Y-2.31%
Revenue Next 3Y2.5%
Revenue Next 5YN/A
EBIT growth 1Y309.53%
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