BURFORD CAPITAL LTD (BUR) Stock Fundamental Analysis
NYSE:BUR - New York Stock Exchange, Inc. - GG00BMGYLN96 - Common Stock - Currency: USD
Overall BUR gets a fundamental rating of 5 out of 10. We evaluated BUR against 99 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 valued too expensively and it also shows a decent growth rate.
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.
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 3.35%, BUR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of BUR (8.52%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 5.88%, BUR is doing good in the industry, outperforming 67.68% 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 11.83%.
| 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 better Profit Margin (33.41%) than 84.85% of its industry peers.
In the last couple of years the Profit Margin of BUR has declined.
BUR has a Operating Margin of 73.56%. This is amongst the best in the industry. BUR outperforms 93.94% 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.
The number of shares outstanding for BUR has been increased compared to 1 year ago.
Compared to 5 years ago, BUR has more shares outstanding
Compared to 1 year ago, BUR has a worse debt to assets ratio.
2.2 Solvency
BUR has an Altman-Z score of 1.30. This is a bad value and indicates that BUR is not financially healthy and even has some risk of bankruptcy.
BUR has a better Altman-Z score (1.30) than 64.65% 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.
BUR's Debt to FCF ratio of 5.54 is fine compared to the rest of the industry. BUR outperforms 65.66% 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.
With a Debt to Equity ratio value of 0.72, BUR perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.74
WACC7.95%
2.3 Liquidity
A Current Ratio of 11.33 indicates that BUR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 11.33, BUR belongs to the top of the industry, outperforming 98.99% of the companies in the same industry.
A Quick Ratio of 11.33 indicates that BUR has no problem at all paying its short term obligations.
The Quick ratio of BUR (11.33) is better than 98.99% of its industry peers.
| 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.
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.
The Revenue for BUR has decreased by -17.28% in the past year. This is quite bad
The Revenue has been growing by 8.09% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 18.88% on average over the next years. This is quite good.
BUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.35% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BUR is valuated correctly with a Price/Earnings ratio of 14.33.
BUR's Price/Earnings is on the same level as the industry average.
BUR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.95, the valuation of BUR can be described as very cheap.
72.73% of the companies in the same industry are more expensive than BUR, based on the Price/Forward Earnings ratio.
BUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BUR is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.16 | ||
| EV/EBITDA | N/A |
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.
BUR's earnings are expected to grow with 18.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y24.77%
EPS Next 3Y18.88%
5. Dividend
5.1 Amount
BUR has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 4.90, BUR has a dividend in line with its industry peers.
With a Dividend Yield of 0.96, BUR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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%
13.33
+0.18 (+1.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners61.62%
Inst Owner Change2.88%
Ins Owners9.43%
Ins Owner Change-0.07%
Market Cap2.91B
Analysts87.27
Price Target23.8 (78.54%)
Short Float %1.67%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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%
PT rev (3m)7.69%
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)-0.69%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 6.95 | ||
| P/S | 4.7 | ||
| P/FCF | 9.16 | ||
| P/OCF | 9.14 | ||
| P/B | 1.2 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY6.98%
EPS(NY)1.92
Fwd EY14.38%
FCF(TTM)1.46
FCFY10.92%
OCF(TTM)1.46
OCFY10.94%
SpS2.84
BVpS11.13
TBVpS10.52
PEG (NY)0.34
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 | 1.3 |
F-Score5
WACC7.95%
ROIC/WACC0.74
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