BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUR - GG00BMGYLN96 - Common Stock
9.09 USD
+0.09 (+1%)
9.09 USD
0 (0%)
Taking everything into account, BUR scores 4 out of 10 in our fundamental rating. BUR was compared to 99 industry peers in the Financial Services industry. While BUR seems to be doing ok healthwise, there are quite some concerns on its profitability. BUR is valied quite expensively at the moment, while it does show a decent growth rate.
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
Looking at the Return On Assets, with a value of 1.30%, BUR is in line with its industry, outperforming 53.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.49%, BUR is doing worse than 63.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.67%, BUR is in line with its industry, outperforming 56.57% of the companies in the same industry.
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 8.44%.
| 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
BUR has a Profit Margin of 18.42%. This is in the better half of the industry: BUR outperforms 71.72% of its industry peers.
In the last couple of years the Profit Margin of BUR has declined.
The Operating Margin of BUR (65.11%) is better than 88.89% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BUR is creating some value.
BUR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BUR has more shares outstanding
BUR has a worse debt/assets ratio than last year.
2.2 Solvency
BUR has an Altman-Z score of 1.01. 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 1.01, BUR is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that BUR is somewhat dependend on debt financing.
BUR has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.56
WACC6.59%
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 98.99% of its industry peers.
A Quick Ratio of 13.43 indicates that BUR has no problem at all paying its short term obligations.
BUR has a better Quick ratio (13.43) than 98.99% of its industry peers.
| 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%.
Measured over the past years, BUR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.52% on average per year.
BUR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.57%.
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
BUR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.43% yearly.
The Revenue is expected to grow by 11.22% on average over the next years. This is quite good.
EPS Next Y-1.19%
EPS Next 2Y4.67%
EPS Next 3Y17.43%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y7.24%
Revenue Next 3Y11.22%
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.
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
Based on the Price/Earnings ratio of 23.31, the valuation of BUR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BUR is on the same level as its industry peers.
BUR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.74 indicates a rather cheap valuation of BUR.
Based on the Price/Forward Earnings ratio, BUR is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
BUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 6.74 |
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 2Y4.67%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, BUR has a reasonable but not impressive dividend return.
The stock price of BUR dropped by -24.69% 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.
Compared to an average industry Dividend Yield of 2.43, BUR has a dividend in line with its industry peers.
BUR's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 2Y4.67%
EPS Next 3Y17.43%
9.09
+0.09 (+1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-0.5%
Ins Owners9.16%
Ins Owner Change-0.36%
Market Cap1.99B
Revenue(TTM)472.97M
Net Income(TTM)87.10M
Analysts87.27
Price TargetN/A
Short Float %3.71%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)-12.83%
PT rev (3m)-15.33%
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)-2.98%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 6.74 | ||
| P/S | 4.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.8 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.39
EY4.29%
EPS(NY)1.35
Fwd EY14.84%
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 | 1.01 |
F-ScoreN/A
WACC6.59%
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 2Y4.67%
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 Year4.05%
Revenue Next 2Y7.24%
Revenue Next 3Y11.22%
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%.