AIM:BUR

Stock Analysis Report

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Executive Summary

Burford Capital Limited, together with its subsidiaries, provides investment capital, asset management, financing, and risk solutions for the legal sector in Guernsey and internationally. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Burford Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BUR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.01%

BUR

-0.1%

GB Diversified Financial

-1.9%

GB Market


1 Year Return

-10.2%

BUR

-9.9%

GB Diversified Financial

-16.2%

GB Market

Return vs Industry: BUR underperformed the UK Diversified Financial industry which returned -5.1% over the past year.

Return vs Market: BUR exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

BURIndustryMarket
7 Day0.01%-0.1%-1.9%
30 Day31.1%11.7%0.7%
90 Day34.2%7.4%-4.8%
1 Year-9.8%-10.2%-0.3%-9.9%-13.0%-16.2%
3 Year-35.8%-36.6%-2.5%-10.9%-9.4%-20.6%
5 Year317.1%301.1%244.9%179.1%13.5%-12.0%

Price Volatility Vs. Market

How volatile is Burford Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Burford Capital undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BUR (£7.38) is trading below our estimate of fair value (£24.31)

Significantly Below Fair Value: BUR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BUR is poor value based on its PE Ratio (14.8x) compared to the GB Diversified Financial industry average (9.5x).

PE vs Market: BUR is good value based on its PE Ratio (14.8x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BUR is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: BUR is overvalued based on its PB Ratio (1.2x) compared to the GB Diversified Financial industry average (1.1x).


Next Steps

Future Growth

How is Burford Capital forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BUR's forecast earnings growth (8.9% per year) is above the savings rate (1.2%).

Earnings vs Market: BUR's earnings (8.9% per year) are forecast to grow slower than the UK market (24.2% per year).

High Growth Earnings: BUR's earnings are forecast to grow, but not significantly.

Revenue vs Market: BUR's revenue (10% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: BUR's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BUR's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Burford Capital performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BUR has high quality earnings.

Growing Profit Margin: BUR's current net profit margins (43.2%) are lower than last year (73.7%).


Past Earnings Growth Analysis

Earnings Trend: BUR's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: BUR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BUR had negative earnings growth (-62%) over the past year, making it difficult to compare to the Diversified Financial industry average (-26.5%).


Return on Equity

High ROE: BUR's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Burford Capital's financial position?


Financial Position Analysis

Short Term Liabilities: BUR's short term assets ($566.4M) exceed its short term liabilities ($27.0M).

Long Term Liabilities: BUR's short term assets ($566.4M) do not cover its long term liabilities ($898.3M).


Debt to Equity History and Analysis

Debt Level: BUR's debt to equity ratio (36.3%) is considered satisfactory.

Reducing Debt: BUR's debt to equity ratio has increased from 35.3% to 36.3% over the past 5 years.

Debt Coverage: BUR's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: BUR's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Burford Capital current dividend yield, its reliability and sustainability?

1.16%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BUR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BUR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BUR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BUR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BUR is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BUR's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Christopher Bogart (55 yo)

no data

Tenure

Mr. Christopher P. Bogart is a Co-Founder of Burford Capital LLC and serves as its Chief Executive Officer. Mr. Borgat serves as Director at Burford Capital LLC since 2020. Mr. Bogart serves as the Chief E ...


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Bogart
CEO & Directorno datano data4.14%
$ 66.9m
Daniel Hall
Co-Founderno datano datano data
James Kilman
Chief Financial Officer1.17yrsno datano data
Aviva Will
Co-Chief Operating Officer0.75yrno datano data
David Perla
Co-Chief Operating Officer0.75yrno datano data
Jonathan Molot
Chief Investment Officerno datano data4.41%
$ 71.2m
Charles Utley
Chief Accounting Officer2.67yrsno datano data
Mark Klein
Chief Administrative Officer & General Counsel0.75yrno datano data
Robert Bailhache
Head of Investor Relationsno datano datano data
Annie Duffy
Chief Compliance Officer2.83yrsno datano data
Liz Bigham
Chief Marketing Officerno datano datano data
Elizabeth O'Connell
Chief Strategy Officer1.17yrsno datano data

1.2yrs

Average Tenure

54yo

Average Age

Experienced Management: BUR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Bogart
CEO & Directorno datano data4.14%
$ 66.9m
Peter Middleton
Independent Chairman of the Boardno dataUS$189.00k0.046%
$ 738.1k
Hugh Wilson
Independent Deputy Chairman11.75yrsUS$125.00k0.12%
$ 1.9m
Robert Andrew Gillespie
Independent Non-Executive Director0.42yrno datano data
John Sievwright
Independent Non-Executive Director0.42yrno data0.0046%
$ 73.9k
Charles Kennedy Parkinson
Independent Non-Executive Directorno dataUS$85.00k0.0037%
$ 59.0k

0.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: BUR's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Burford Capital Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Burford Capital Limited
  • Ticker: BUR
  • Exchange: AIM
  • Founded: 2009
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: UK£1.617b
  • Shares outstanding: 219.05m
  • Website: https://www.burfordcapital.com

Number of Employees


Location

  • Burford Capital Limited
  • Oak House
  • Hirzel Street
  • Saint Peter Port
  • GY1 2NP
  • Guernsey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BURAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2009
9BFDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2009
BURNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 2009
BRFR.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2017

Biography

Burford Capital Limited, together with its subsidiaries, provides investment capital, asset management, financing, and risk solutions for the legal sector in Guernsey and internationally. The company offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:13
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.