BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUR - GG00BMGYLN96 - Common Stock
9.57 USD
+0.04 (+0.42%)
9.54 USD
-0.03 (-0.31%)
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. The financial health of BUR is average, but there are quite some concerns on its profitability. While showing a medium growth rate, BUR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BUR was profitable.
Of the past 5 years BUR 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: BUR reported negative operating cash flow in multiple years.
1.2 Ratios
BUR has a Return On Assets (1.30%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 3.49%, BUR is doing worse than 66.33% of the companies in the same industry.
BUR has a Return On Invested Capital of 3.67%. This is comparable to the rest of the industry: BUR outperforms 54.08% of its industry peers.
BUR had an Average Return On Invested Capital over the past 3 years of 6.79%. This is in line with the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.49% | ||
| ROIC | 3.67% |
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
The Profit Margin of BUR (18.42%) is better than 72.45% of its industry peers.
BUR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 65.11%, BUR belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
BUR's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.11% | ||
| PM (TTM) | 18.42% | ||
| 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.
Compared to 5 years ago, BUR has more shares outstanding
The debt/assets ratio for BUR is higher compared to a year ago.
2.2 Solvency
BUR has an Altman-Z score of 1.02. This is a bad value and indicates that BUR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, BUR is in line with its industry, outperforming 59.18% of the companies in the same industry.
BUR has a Debt/Equity ratio of 0.86. This is a neutral value indicating BUR is somewhat dependend on debt financing.
BUR's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. BUR outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.56
WACC6.56%
2.3 Liquidity
BUR has a Current Ratio of 13.43. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
BUR's Current ratio of 13.43 is amongst the best of the industry. BUR outperforms 98.98% of its industry peers.
A Quick Ratio of 13.43 indicates that BUR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 13.43, BUR belongs to the top of the industry, outperforming 98.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.43 | ||
| Quick Ratio | 13.43 |
3. Growth
3.1 Past
BUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.69%.
The Earnings Per Share has been decreasing by -7.52% on average over the past years.
The Revenue for BUR has decreased by -36.57% in the past year. This is quite bad
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)-66.69%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%-114.33%
Revenue 1Y (TTM)-36.57%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%-71.98%
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.
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
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.
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
BUR is valuated rather expensively with a Price/Earnings ratio of 24.54.
Compared to the rest of the industry, the Price/Earnings ratio of BUR indicates a slightly more expensive valuation: BUR is more expensive than 61.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. BUR is around the same levels.
A Price/Forward Earnings ratio of 6.83 indicates a rather cheap valuation of BUR.
75.51% 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 36.59, BUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 6.83 |
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 1.46%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of BUR has falen by -31.64%. 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 5.20, BUR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, BUR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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
BUR pays out 47.06% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.06%
EPS Next 2Y6.65%
EPS Next 3Y17.43%
9.57
+0.04 (+0.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-0.58%
Ins Owners9.16%
Ins Owner Change-0.15%
Market Cap2.09B
Revenue(TTM)472.97M
Net Income(TTM)87.10M
Analysts87.27
Price Target21.25 (122.05%)
Short Float %3.57%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.12
Dividend Growth(5Y)-0.83%
DP47.06%
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)-12.56%
PT rev (3m)-10.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 24.54 | ||
| Fwd PE | 6.83 | ||
| P/S | 4.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.84 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.39
EY4.08%
EPS(NY)1.4
Fwd EY14.64%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.16
BVpS11.41
TBVpS10.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.49% | ||
| ROCE | 4.64% | ||
| ROIC | 3.67% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 4.24% | ||
| OM | 65.11% | ||
| PM (TTM) | 18.42% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| 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 | 13.43 | ||
| Quick Ratio | 13.43 | ||
| Altman-Z | 1.02 |
F-ScoreN/A
WACC6.56%
ROIC/WACC0.56
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)-66.69%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%-114.33%
EPS Next Y-1.19%
EPS Next 2Y6.65%
EPS Next 3Y17.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-36.57%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%-71.98%
Revenue Next Year7.24%
Revenue Next 2Y8.33%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
EBIT growth 1Y-40%
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 3 / 10 to BURFORD CAPITAL LTD (BUR). This can be considered as Overvalued.
Can you provide the profitability details for BURFORD CAPITAL LTD?
BURFORD CAPITAL LTD (BUR) has a profitability rating of 3 / 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 47.06%.