AIM:BUR

Stock Analysis Report

Executive Summary

Burford Capital Limited, together with its subsidiaries, provides investment capital, investment management, financing, and risk solutions for the legal sector.

Snowflake

Fundamentals

Undervalued with solid track record.


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


Market Performance


7 Day Return

1.7%

BUR

-0.9%

GB Capital Markets

0.08%

GB Market


1 Year Return

-49.0%

BUR

21.1%

GB Capital Markets

3.5%

GB Market

Return vs Industry: BUR underperformed the UK Capital Markets industry which returned 21.1% over the past year.

Return vs Market: BUR underperformed the UK Market which returned 3.5% over the past year.


Shareholder returns

BURIndustryMarket
7 Day1.7%-0.9%0.08%
30 Day-5.7%-3.2%-1.3%
90 Day-46.6%3.1%-2.2%
1 Year-48.7%-49.0%24.1%21.1%9.0%3.5%
3 Year72.2%69.2%77.7%65.1%18.1%3.1%
5 Year633.6%578.9%148.1%118.7%36.2%5.3%

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 (£8.22) is trading below our estimate of fair value (£27.2)

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


Price To Earnings Ratio

PE vs Industry: BUR is good value based on its PE Ratio (6.1x) compared to the Capital Markets industry average (18.9x).

PE vs Market: BUR is good value based on its PE Ratio (6.1x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: BUR is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BUR is overvalued based on its PB Ratio (1.5x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Burford Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BUR's forecast earnings growth (13.5% per year) is above the savings rate (1.2%).

Earnings vs Market: BUR's earnings (13.5% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: BUR's revenue (15.7% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: BUR's revenue (15.7% 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 high in 3 years time (24.9%)


Next Steps

Past Performance

How has Burford Capital performed over the past 5 years?

43.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BUR's earnings have grown significantly by 43.8% per year over the past 5 years.

Accelerating Growth: BUR's earnings growth over the past year (36.1%) is below its 5-year average (43.8% per year).

Earnings vs Industry: BUR earnings growth over the past year (36.1%) exceeded the Capital Markets industry 4.6%.


Return on Equity

High ROE: BUR's Return on Equity (24.1%) is considered high.


Return on Assets

ROA vs Industry: BUR has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: BUR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Burford Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BUR has a low level of unsold assets or inventory.

Debt Coverage by Assets: BUR's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: BUR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BUR has a sufficient allowance for bad loans.

Low Risk Liabilities: BUR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BUR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BUR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BUR has an appropriate level of bad loans.


Next Steps

Dividend

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

1.18%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Burford Capital before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BUR's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: BUR's dividend (1.18%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: BUR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BUR's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.4%), BUR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BUR's dividends in 3 years are forecast to be thoroughly covered by earnings (7.4% payout ratio).


Next Steps

Management

What is the CEO of Burford Capital's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Christopher Bogart (54yo)

0yrs

Tenure

0

Mr. Christopher P. Bogart is a Co-founder of Burford Capital LLC and serves as its Chief Executive Officer. Mr. Bogart serves as the Chief Executive Officer of Burford Capital PLC and Burford Capital Ltd.  ...


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: BUR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Insider Trading

Insider Buying: BUR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$206,75214 Aug 19
Hugh Wilson
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares29,410
Max PriceUS$7.03
BuyUS$1,912,50013 Aug 19
Jonathan Molot
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares250,000
Max PriceUS$7.65
BuyUS$2,910,08312 Aug 19
Jonathan Molot
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares339,963
Max PriceUS$8.56
BuyUS$199,38809 Aug 19
Hugh Wilson
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares25,000
Max PriceUS$7.98
BuyUS$52,40009 Aug 19
Charles Kennedy Parkinson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$6.55
BuyUS$821,39508 Aug 19
Christopher Bogart
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares123,747
Max PriceUS$6.64
BuyUS$2,327,46308 Aug 19
Jonathan Molot
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer
Shares350,643
Max PriceUS$6.64

Ownership Breakdown


Management Team

  • Christopher Bogart (54yo)

    Chief Executive Officer

    • Tenure: 0yrs
  • Elizabeth O'Connell (53yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Jonathan Molot

    Chief Investment Officer

    • Tenure: 0yrs
  • Liz Bigham

    Chief Marketing Officer

    • Tenure: 0yrs
  • Adam Gerchen

    President

    • Tenure: 2.8yrs
  • Mark Klein

    General Counsel

    • Tenure: 2.1yrs
  • Daniel Hall

    Co-Founder

    • Tenure: 0yrs
  • Quentin Pak

    Director of Lead Operations

    • Tenure: 2yrs
  • Annie Duffy

    Chief Compliance Officer

    • Tenure: 1.8yrs
  • Charles Utley

    Chief Accounting Officer

    • Tenure: 1.7yrs

Board Members

  • Peter Middleton (85yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Hugh Wilson (71yo)

    Vice Chairman

    • Tenure: 0yrs
  • Charles Kennedy Parkinson (65yo)

    Independent Director

    • Tenure: 0yrs
  • David Lowe (83yo)

    Independent Director

    • Tenure: 0yrs

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: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£1.761b
  • Shares outstanding: 218.65m
  • Website: https://www.burfordcapital.com

Location

  • Burford Capital Limited
  • Regency Court
  • Glategny Esplanade
  • St Peter Port
  • GY1 1WW
  • Guernsey

Listings

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

Biography

Burford Capital Limited, together with its subsidiaries, provides investment capital, investment management, financing, and risk solutions for the legal sector. It operates in four segments: Investments, I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 21:09
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.