BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
NYSE:BUR - New York Stock Exchange, Inc. - GG00BMGYLN96 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BUR. BUR was compared to 100 industry peers in the Financial Services industry. BUR has only an average score on both its financial health and profitability. BUR is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year BUR was profitable.
BUR had a positive operating cash flow in the past year.
BUR had positive earnings in 4 of the past 5 years.
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
With a decent Return On Assets value of 3.35%, BUR is doing good in the industry, outperforming 68.00% of the companies in the same industry.
BUR has a Return On Equity (8.52%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.88%, BUR is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BUR is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.52% | ||
| ROIC | 5.88% |
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 33.41%. This is amongst the best in the industry. BUR outperforms 85.00% of its industry peers.
In the last couple of years the Profit Margin of BUR has declined.
BUR's Operating Margin of 73.56% is amongst the best of the industry. BUR outperforms 94.00% 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 | 73.56% | ||
| PM (TTM) | 33.41% | ||
| 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 below the Cost of Capital (WACC), so BUR is destroying value.
Compared to 1 year ago, BUR has more shares outstanding
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
Based on the Altman-Z score of 1.24, we must say that BUR is in the distress zone and has some risk of bankruptcy.
BUR's Altman-Z score of 1.24 is fine compared to the rest of the industry. BUR outperforms 65.00% of its industry peers.
The Debt to FCF ratio of BUR is 5.54, which is a neutral value as it means it would take BUR, 5.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BUR (5.54) is better than 66.00% of its industry peers.
BUR has a Debt/Equity ratio of 0.72. This is a neutral value indicating BUR is somewhat dependend on debt financing.
BUR has a Debt to Equity ratio (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.84
WACC6.97%
2.3 Liquidity
A Current Ratio of 11.33 indicates that BUR has no problem at all paying its short term obligations.
BUR has a better Current ratio (11.33) than 99.00% of its industry peers.
A Quick Ratio of 11.33 indicates that BUR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 11.33, BUR belongs to the top of the industry, outperforming 99.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.33 | ||
| Quick Ratio | 11.33 |
3. Growth
3.1 Past
The earnings per share for BUR have decreased strongly by -35.17% 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 -17.28% in the last year.
BUR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.09% yearly.
EPS 1Y (TTM)-35.17%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%200%
Revenue 1Y (TTM)-17.28%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%168.31%
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 18.88% yearly.
Based on estimates for the next years, BUR will show a quite strong growth in Revenue. The Revenue will grow by 11.35% on average per year.
EPS Next Y41.55%
EPS Next 2Y24.77%
EPS Next 3Y18.88%
EPS Next 5YN/A
Revenue Next Year21.11%
Revenue Next 2Y13.47%
Revenue Next 3Y11.35%
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
A Price/Earnings ratio of 12.57 indicates a correct valuation of BUR.
Based on the Price/Earnings ratio, BUR is valued a bit cheaper than 62.00% of the companies in the same industry.
BUR is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
BUR is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
Based on the Price/Forward Earnings ratio, BUR is valued cheaper than 83.00% of the companies in the same industry.
BUR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
81.00% of the companies in the same industry are more expensive than BUR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BUR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BUR's earnings are expected to grow with 18.88% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y24.77%
EPS Next 3Y18.88%
5. Dividend
5.1 Amount
BUR has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.70, BUR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, BUR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
BUR pays out 13.18% of its income as dividend. This is a sustainable payout ratio.
DP13.18%
EPS Next 2Y24.77%
EPS Next 3Y18.88%
11.69
+0.1 (+0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners59.45%
Inst Owner Change2.93%
Ins Owners9.23%
Ins Owner Change0.14%
Market Cap2.56B
Analysts87.27
Price Target23.8 (103.59%)
Short Float %1.84%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend0.12
Dividend Growth(5Y)-0.83%
DP13.18%
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)0.02%
PT rev (3m)8.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 6.1 | ||
| P/S | 4.12 | ||
| P/FCF | 8.03 | ||
| P/OCF | 8.01 | ||
| P/B | 1.05 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY7.96%
EPS(NY)1.92
Fwd EY16.4%
FCF(TTM)1.46
FCFY12.45%
OCF(TTM)1.46
OCFY12.48%
SpS2.84
BVpS11.13
TBVpS10.52
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.52% | ||
| ROCE | 7.44% | ||
| ROIC | 5.88% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 6.62% | ||
| OM | 73.56% | ||
| PM (TTM) | 33.41% | ||
| GM | N/A | ||
| FCFM | 51.28% |
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%
ROICexcg growth 3Y47.97%
ROICexcg 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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 153.5% | ||
| Current Ratio | 11.33 | ||
| Quick Ratio | 11.33 | ||
| Altman-Z | 1.24 |
F-Score5
WACC6.97%
ROIC/WACC0.84
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)-35.17%
EPS 3YN/A
EPS 5Y-7.52%
EPS Q2Q%200%
EPS Next Y41.55%
EPS Next 2Y24.77%
EPS Next 3Y18.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.28%
Revenue growth 3Y35.85%
Revenue growth 5Y8.09%
Sales Q2Q%168.31%
Revenue Next Year21.11%
Revenue Next 2Y13.47%
Revenue Next 3Y11.35%
Revenue Next 5YN/A
EBIT growth 1Y-11.19%
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