BURFORD CAPITAL LTD (BUR)
GG00BMGYLN96 - Common Stock
We assign a fundamental rating of 6 out of 10 to BUR. BUR was compared to 102 industry peers in the Financial Services industry. Both the profitability and the financial health of BUR get a neutral evaluation. Nothing too spectacular is happening here. BUR is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make BUR suitable for growth investing!
1. Profitability
1.1 Basic Checks
BUR had positive earnings in the past year.
BUR had a negative operating cash flow in the past year.
BUR had positive earnings in 4 of the past 5 years.
BUR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
BUR has a better Return On Assets (10.46%) than 91.18% of its industry peers.
BUR's Return On Equity of 26.65% is amongst the best of the industry. BUR outperforms 89.22% of its industry peers.
BUR's Return On Invested Capital of 11.33% is amongst the best of the industry. BUR outperforms 87.25% of its industry peers.
BUR had an Average Return On Invested Capital over the past 3 years of 5.63%. This is below the industry average of 7.99%.
The 3 year average ROIC (5.63%) for BUR is below the current ROIC(11.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 26.65% | ||
| ROIC | 11.33% |
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
The Profit Margin of BUR (56.17%) is better than 94.12% of its industry peers.
In the last couple of years the Profit Margin of BUR has declined.
Looking at the Operating Margin, with a value of 76.56%, BUR belongs to the top of the industry, outperforming 93.14% 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 | 76.56% | ||
| PM (TTM) | 56.17% | ||
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
BUR has about the same amout of shares outstanding than it did 1 year ago.
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 1.68, we must say that BUR is in the distress zone and has some risk of bankruptcy.
BUR has a better Altman-Z score (1.68) than 71.57% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that BUR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, BUR is in line with its industry, outperforming 50.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC1.48
WACC7.68%
2.3 Liquidity
BUR has a Current Ratio of 6.41. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 6.41, BUR belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
BUR has a Quick Ratio of 6.41. This indicates that BUR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of BUR (6.41) is better than 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.41 | ||
| Quick Ratio | 6.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 700.00% over the past year.
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%.
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 growth Q2Q87.5%
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y20.66%
Revenue growth Q2Q37.16%
3.2 Future
BUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.89% yearly.
Based on estimates for the next years, BUR will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y28.82%
EPS Next 2Y25%
EPS Next 3Y21.89%
EPS Next 5YN/A
Revenue Next Year-18.68%
Revenue Next 2Y-2.54%
Revenue Next 3Y3.11%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.45, which indicates a correct valuation of BUR.
Compared to the rest of the industry, the Price/Earnings ratio of BUR indicates a somewhat cheap valuation: BUR is cheaper than 60.78% of the companies listed in the same industry.
BUR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.02.
BUR is valuated reasonably with a Price/Forward Earnings ratio of 11.21.
Based on the Price/Forward Earnings ratio, BUR is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
BUR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
89.22% of the companies in the same industry are more expensive than BUR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BUR may justify a higher PE ratio.
A more expensive valuation may be justified as BUR's earnings are expected to grow with 21.89% in the coming years.
PEG (NY)0.5
PEG (5Y)1.14
EPS Next 2Y25%
EPS Next 3Y21.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, BUR is not a good candidate for dividend investing.
BUR's Dividend Yield is a higher than the industry average which is at 3.56.
With a Dividend Yield of 0.80, BUR pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 recently.
Dividend Growth(5Y)1.76%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
BUR pays out 4.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of BUR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.5%
EPS Next 2Y25%
EPS Next 3Y21.89%
BURFORD CAPITAL LTD
NYSE:BUR (5/6/2024, 7:04:00 PM)
After market: 16.18 0 (0%)16.18
+0.34 (+2.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 11.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.5
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 26.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 76.56% | ||
| PM (TTM) | 56.17% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.41 | ||
| Quick Ratio | 6.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)700%
EPS 3Y61.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)240.48%
Revenue growth 3Y49.11%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y