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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BUR's weekly volatility has decreased from 11% to 5% over the past year.


Market Performance


7 Day Return

0.08%

BUR

0.9%

GB Diversified Financial

-0.8%

GB Market


1 Year Return

9.9%

BUR

-3.1%

GB Diversified Financial

-3.7%

GB Market

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

Return vs Market: BUR exceeded the UK Market which returned -2% over the past year.


Shareholder returns

BURIndustryMarket
7 Day0.08%0.9%-0.8%
30 Day5.0%1.5%0.9%
90 Day-16.1%-4.6%6.6%
1 Year9.9%9.9%8.0%-3.1%2.1%-3.7%
3 Year-36.5%-37.4%-14.4%-22.9%9.6%-3.5%
5 Year203.4%191.8%146.2%94.1%41.7%14.3%

Long-Term 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 (£6.55) is trading below our estimate of fair value (£22.83)

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 (14.1x) compared to the GB Diversified Financial industry average (11.7x).

PE vs Market: BUR is good value based on its PE Ratio (14.1x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: BUR is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: BUR's PB Ratio (1.2x) is in line with the GB Diversified Financial industry average.


Next Steps

Future Growth

How is Burford Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BUR's forecast earnings growth (2.4% per year) is above the savings rate (1%).

Earnings vs Market: BUR's earnings (2.4% per year) are forecast to grow slower than the UK market (23.6% per year).

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

Revenue vs Market: BUR's revenue (7.9% per year) is forecast to grow faster than the UK market (7% per year).

High Growth Revenue: BUR's revenue (7.9% 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 (9%).


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 (-24.3%).


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 (36.4%) is considered satisfactory.

Reducing Debt: BUR's debt to equity ratio has increased from 35.3% to 36.4% 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?

1.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BUR's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: BUR's dividend (1.35%) is low compared to the top 25% of dividend payers in the UK market (4.52%).


Stability and Growth of Payments

Stable Dividend: BUR's dividend payments have been volatile in the past 10 years.

Growing Dividend: BUR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as BUR has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: BUR's dividends in 3 years are forecast to be thoroughly covered by earnings (11.8% payout ratio).


Next Steps

Management

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

1.5yrs

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%
$ 58.9m
Daniel Hall
Co-Founderno datano datano data
James Kilman
Chief Financial Officer1.5yrsno datano data
Aviva Will
Co-Chief Operating Officer1.08yrsno datano data
David Perla
Co-Chief Operating Officer1.08yrsno datano data
Jonathan Molot
Chief Investment Officerno datano data4.41%
$ 62.7m
Charles Utley
Chief Accounting Officer3yrsno datano data
Mark Klein
Chief Administrative Officer & General Counsel1.08yrsno datano data
Annie Duffy
Chief Compliance Officer3.17yrsno datano data
Liz Bigham
Chief Marketing Officerno datano datano data
Elizabeth O'Connell
Chief Strategy Officer1.5yrsno data0.023%
$ 325.5k
Ernest Getto
Managing Directorno datano datano data

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: BUR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Bogart
CEO & Directorno datano data4.14%
$ 58.9m
Peter Middleton
Independent Chairman of the Boardno dataUS$189.00k0.046%
$ 650.0k
Hugh Wilson
Independent Deputy Chairman12.08yrsUS$125.00k0.12%
$ 1.7m
Robert Andrew Gillespie
Independent Non-Executive Director0.75yrno datano data
John Sievwright
Independent Non-Executive Director0.75yrno data0.0046%
$ 65.1k
Andrea Muller
Non Executive Director0.17yrno datano data
Charles Kennedy Parkinson
Independent Non-Executive Directorno dataUS$85.00k0.0037%
$ 52.0k

0.8yrs

Average Tenure

65yo

Average Age

Experienced Board: BUR's board of directors are not considered experienced ( 0.8 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£1.424b
  • 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
9BFADB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2009
BURNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 2009
BRFR.YOTCUS (Other "Grey Market" OTC)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 Analysis2021/02/24 18:41
End of Day Share Price2021/02/24 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.