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Burford Capital

AIM:BUR
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BUR
AIM
£2B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

Burford Capital Limited, together with its subsidiaries, provides investment capital, investment management, financing, and risk solutions for the legal sector. The last earnings update was 110 days ago. More info.


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  • Burford Capital has significant price volatility in the past 3 months.
BUR Share Price and Events
7 Day Returns
-4.7%
AIM:BUR
-0.3%
GB Capital Markets
-0.5%
GB Market
1 Year Returns
-41%
AIM:BUR
18.8%
GB Capital Markets
3.7%
GB Market
BUR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Burford Capital (BUR) -4.7% 14% 15.5% -41% 87% 641.7%
GB Capital Markets -0.3% -1.2% 3.2% 18.8% 63.8% 107.4%
GB Market -0.5% 1.4% 3.1% 3.7% 7.8% 3.8%
1 Year Return vs Industry and Market
  • BUR underperformed the Capital Markets industry which returned 18.8% over the past year.
  • BUR underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 3.7% over the past year.
Price Volatility
BUR
Industry
5yr Volatility vs Market
Related Companies

BUR Value

 Is Burford Capital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Burford Capital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Burford Capital.

AIM:BUR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $9.39 * 26.4%
$2.48
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. $9.39
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:BUR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.753 (1 + (1- 21%) (25.69%))
1.095
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.095 * 5.96%)
7.75%

Discounted Cash Flow Calculation for AIM:BUR using Excess Returns Model Model

The calculations below outline how an intrinsic value for Burford Capital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

AIM:BUR Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (26.4% – 7.75%) * $9.39)
$1.75
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.75 / (7.75% - 1.23%)
$26.80
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $9.39 + $26.80
$36.2
AIM:BUR Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of AIM:BUR)
0.778
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $36.2 x 0.778
£28.18
Value per share (GBP) From above. £28.18
Current discount Discount to share price of £8.98
= -1 x (£8.98 - £28.18) / £28.18
68.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Burford Capital is available for.
Intrinsic value
>50%
Share price is £8.98 vs Future cash flow value of £28.18
Current Discount Checks
For Burford Capital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Burford Capital's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Burford Capital's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Burford Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Burford Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:BUR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $1.75
AIM:BUR Share Price ** AIM (2019-11-12) in GBP £8.98
AIM:BUR Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.285 $11.53
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 42 Publicly-Listed Capital Markets Companies 20.19x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 16.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Burford Capital.

AIM:BUR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:BUR Share Price ÷ EPS (both in USD)

= 11.53 ÷ 1.75

6.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Burford Capital is good value based on earnings compared to the GB Capital Markets industry average.
  • Burford Capital is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Burford Capital's expected growth come at a high price?
Raw Data
AIM:BUR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
12.9%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 25 Publicly-Listed Capital Markets Companies 1.1x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 555 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

AIM:BUR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.6x ÷ 12.9%

0.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Burford Capital is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Burford Capital's assets?
Raw Data
AIM:BUR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $7.17
AIM:BUR Share Price * AIM (2019-11-12) in GBP £8.98
AIM:BUR Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.285 $11.53
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 75 Publicly-Listed Capital Markets Companies 1.33x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,305 Publicly-Listed Companies 1.5x
AIM:BUR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:BUR Share Price ÷ Book Value per Share (both in USD)

= 11.53 ÷ 7.17

1.61x

* Primary Listing of Burford Capital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Burford Capital is overvalued based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess Burford Capital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Burford Capital has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BUR Future Performance

 How is Burford Capital expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Burford Capital expected to grow at an attractive rate?
  • Burford Capital's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Burford Capital's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Burford Capital's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:BUR Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:BUR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 12.9%
AIM:BUR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 15.5%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:BUR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:BUR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 832 494 1
2022-12-31 884 583 2
2021-12-31 769 74 595 6
2020-12-31 625 64 447 8
2019-12-31 514 10 362 8
2019-11-12
AIM:BUR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 511 -186 377
2019-03-31 469 -210 347
2018-12-31 426 -233 318
2018-09-30 400 -156 297
2018-06-30 374 -79 277
2018-03-31 357 -91 263
2017-12-31 341 -102 249
2017-09-30 301 -29 219
2017-06-30 262 45 189
2017-03-31 213 19 149
2016-12-31 163 -7 108
2016-09-30 152 -43 101

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Burford Capital's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).
  • Burford Capital's revenue is expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:BUR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Burford Capital Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:BUR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.25 2.25 2.25 1.00
2022-12-31 2.66 3.40 1.92 2.00
2021-12-31 3.49 5.77 2.20 4.00
2020-12-31 2.03 2.44 1.81 6.00
2019-12-31 1.66 1.83 1.50 6.00
2019-11-12
AIM:BUR Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 1.75
2019-03-31 1.63
2018-12-31 1.51
2018-09-30 1.42
2018-06-30 1.33
2018-03-31 1.26
2017-12-31 1.20
2017-09-30 1.06
2017-06-30 0.92
2017-03-31 0.72
2016-12-31 0.53
2016-09-30 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Burford Capital is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Burford Capital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Burford Capital has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BUR Past Performance

  How has Burford Capital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Burford Capital's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Burford Capital has delivered over 20% year on year earnings growth in the past 5 years.
  • Burford Capital's 1-year earnings growth is less than its 5-year average (36.1% vs 43.8%)
  • Burford Capital's earnings growth has exceeded the GB Capital Markets industry average in the past year (36.1% vs 4.7%).
Earnings and Revenue History
Burford Capital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Burford Capital Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:BUR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 511.26 377.23 0.90
2019-03-31 468.84 347.41 0.90
2018-12-31 426.43 317.58 0.90
2018-09-30 400.04 297.33 0.06
2018-06-30 373.66 277.08 0.00
2018-03-31 357.32 263.19 1.92
2017-12-31 340.98 249.30 3.84
2017-09-30 301.44 219.21 3.84
2017-06-30 261.91 189.11 3.84
2017-03-31 212.53 148.69 1.92
2016-12-31 163.16 108.27
2016-09-30 151.69 100.92
2016-06-30 140.22 93.56
2016-03-31 122.02 79.02
2015-12-31 103.82 64.47
2015-09-30 94.79 60.70 3.17
2015-06-30 85.76 56.92 6.35
2015-03-31 79.63 51.18 6.35
2014-12-31 73.50 45.44 6.35
2014-09-30 70.73 42.02 6.26
2014-06-30 67.97 38.59 6.16
2014-03-31 64.23 20.59 6.16
2013-12-31 60.49 2.58 6.16
2013-09-30 59.96 -4.69 10.24
2013-06-30 59.44 -11.95 14.32
2013-03-31 56.51 2.72 14.32
2012-12-31 53.58 17.38 14.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Burford Capital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Burford Capital used its assets more efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • Burford Capital has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Burford Capital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Burford Capital has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BUR Health

 How is Burford Capital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Burford Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Burford Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Burford Capital's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Burford Capital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Burford Capital Company Filings, last reported 4 months ago.

AIM:BUR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,567.04 637.79 276.28
2019-03-31 1,567.04 637.79 276.28
2018-12-31 1,363.15 638.67 307.00
2018-09-30 1,363.15 638.67 307.00
2018-06-30 953.73 653.76 291.54
2018-03-31 953.73 653.76 291.54
2017-12-31 798.56 486.93 175.35
2017-09-30 798.56 486.93 175.35
2017-06-30 705.09 468.04 221.92
2017-03-31 705.09 468.04 221.92
2016-12-31 596.16 273.99 169.47
2016-09-30 596.16 273.99 169.47
2016-06-30 492.36 251.26 208.54
2016-03-31 492.36 251.26 208.54
2015-12-31 434.03 131.28 185.62
2015-09-30 434.03 131.28 185.62
2015-06-30 393.64 139.31 222.22
2015-03-31 393.64 139.31 222.22
2014-12-31 382.54 138.07 189.62
2014-09-30 382.54 138.07 189.62
2014-06-30 353.30 0.00 77.34
2014-03-31 353.30 0.00 77.34
2013-12-31 351.51 0.00 83.81
2013-09-30 351.51 0.00 83.81
2013-06-30 322.30 0.00 68.24
2013-03-31 322.30 0.00 68.24
2012-12-31 332.11 0.00 76.35
  • Burford Capital's level of debt (40.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.4% vs 40.7% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
X
Financial health checks
We assess Burford Capital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Burford Capital has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BUR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.08%
Current annual income from Burford Capital dividends. Estimated to be 1.44% next year.
If you bought £2,000 of Burford Capital shares you are expected to receive £22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Burford Capital's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • Burford Capital's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.33%).
Upcoming dividend payment

Purchase Burford Capital before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:BUR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 680 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:BUR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.25 1.00
2022-12-31 0.20 2.00
2021-12-31 0.18 6.00
2020-12-31 0.16 9.00
2019-12-31 0.14 9.00
2019-11-12
AIM:BUR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-04 0.125 1.018
2018-11-19 0.116 0.549
2018-03-19 0.110 0.508
2017-05-16 0.092 0.641
2016-07-27 0.083 1.219
2016-05-17 0.080 1.719
2015-05-01 0.105 3.695
2014-10-13 0.035 1.739
2014-04-01 0.052 2.539
2014-03-31 0.052 2.653
2013-04-11 0.048 2.537
2012-07-31 0.037 2.243
2012-04-04 0.037 2.064
2012-04-03 0.037 1.605
2011-03-23 0.034 1.791

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Burford Capital has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Burford Capital only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Burford Capital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (13.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (13.5x coverage).
X
Income/ dividend checks
We assess Burford Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Burford Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Burford Capital has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BUR Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Christopher Bogart
AGE 54
CEO Bio

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. Mr. Bogart is an Officer at Burford Capital Finance LLC. Mr. Bogart serves as the Chief Executive Officer and Principal of CGIS Group Limited (Burford Group Limited). He founded Churchill Ventures Ltd. and served as its Chief Executive Officer since June 26, 2006. He served as the President and Chief Executive Officer of Time Warner Investments. He served as the Managing Director of Glenavy Capital LLC since June 2003. Mr. Bogart served as an Executive Vice President, General Counsel and Secretary of Historic TW Inc. (alternate name, Time Warner Inc.) and Time Warner Entertainment Company, L.P. since January 2000. He served as Vice President and Deputy General Counsel of Historic TW Inc. from March 1998 and as one of Time Warner Inc.'s principal outside litigation counsel at Cravath, Swaine & Moore prior to that. Mr. Bogart served as President and Chief Executive Officer of Time Warner Cable Ventures; and the President and Chief Executive Officer of Time Warner Entertainment Ventures. He served as an Executive Chairman of Churchill Ventures Ltd. He is a Member of the Advisory Board of Neilsen BuzzMetrics, a subsidiary of VNU NV.Ventures. He served as a Member of the Board of Directors at Churchill Ventures Ltd. since June 26, 2006. Mr. Bogart served as a Member of the Board of Directors at Time Warner Entertainment Company, L.P.

CEO Compensation
  • Insufficient data for Christopher to compare compensation growth.
  • Insufficient data for Christopher to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Burford Capital management team in years:

2
Average Tenure
  • The tenure for the Burford Capital management team is about average.
Management Team

Christopher Bogart

TITLE
Chief Executive Officer
AGE
54

Adam Gerchen

TITLE
President
TENURE
2.9 yrs

Daniel Hall

TITLE
Co-Founder

Elizabeth O'Connell

TITLE
Chief Financial Officer
AGE
53
TENURE
1.9 yrs

Quentin Pak

TITLE
Director of Lead Operations
TENURE
2.1 yrs

Jonathan Molot

TITLE
Chief Investment Officer

Charles Utley

TITLE
Chief Accounting Officer
TENURE
1.8 yrs

Mark Klein

TITLE
General Counsel
TENURE
2.2 yrs

Annie Duffy

TITLE
Chief Compliance Officer
TENURE
1.9 yrs

Liz Bigham

TITLE
Chief Marketing Officer
Board of Directors

Peter Middleton

TITLE
Chairman of the Board
AGE
85

Hugh Wilson

TITLE
Vice Chairman
AGE
71

Charles Kennedy Parkinson

TITLE
Independent Director
AGE
65

David Lowe

TITLE
Independent Director
AGE
83
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Burford Capital individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
14. Aug 19 Buy Hugh Wilson Individual 13. Aug 19 13. Aug 19 29,410 £7.03 £206,752
13. Aug 19 Buy Jonathan Molot Individual 12. Aug 19 12. Aug 19 250,000 £7.65 £1,912,500
12. Aug 19 Buy Jonathan Molot Individual 09. Aug 19 09. Aug 19 339,963 £8.56 £2,910,083
09. Aug 19 Buy Charles Kennedy Parkinson Individual 08. Aug 19 08. Aug 19 8,000 £6.55 £52,400
09. Aug 19 Buy Hugh Wilson Individual 08. Aug 19 08. Aug 19 25,000 £7.98 £199,388
08. Aug 19 Buy Jonathan Molot Individual 08. Aug 19 08. Aug 19 350,643 £6.64 £2,327,463
08. Aug 19 Buy Christopher Bogart Individual 08. Aug 19 08. Aug 19 123,747 £6.64 £821,395
X
Management checks
We assess Burford Capital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Burford Capital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BUR News

Simply Wall St News

Did You Miss Burford Capital's (LON:BUR) Whopping 589% Share Price Gain?

Burford Capital Limited (LON:BUR) shareholders might understandably be very concerned that the share price has dropped 49% in the last quarter. … During five years of share price growth, Burford Capital achieved compound earnings per share (EPS) growth of 56% per year. … As it happens, Burford Capital's TSR for the last 5 years was 644%, which exceeds the share price return mentioned earlier.

Simply Wall St -

The Chief Investment Officer of Burford Capital Limited (LON:BUR), Jonathan Molot, Just Bought 4.096586% More Shares

Check out our latest analysis for Burford Capital The Last 12 Months Of Insider Transactions At Burford Capital Notably, that recent purchase by Jonathan Molot is the biggest insider purchase of Burford Capital shares that we've seen in the last year. … Burford Capital insiders may have bought shares in the last year, but they didn't sell any. … AIM:BUR Recent Insider Trading, August 10th 2019 Insider Ownership of Burford Capital For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

How Does Burford Capital's (LON:BUR) P/E Compare To Its Industry, After The Share Price Drop?

We can see in the image below that the average P/E (16.5) for companies in the capital markets industry is higher than Burford Capital's P/E. … AIM:BUR Price Estimation Relative to Market, August 8th 2019 Its relatively low P/E ratio indicates that Burford Capital shareholders think it will struggle to do as well as other companies in its industry classification. … The Verdict On Burford Capital's P/E Ratio Burford Capital trades on a P/E ratio of 4.9, which is below the GB market average of 15.9.

Simply Wall St -

Want To Invest In Burford Capital Limited (LON:BUR) Today? Read This First

Analysts are predicting good growth prospects for Burford Capital over the next couple of years. … However, to properly examine the value of a high-growth stock such as Burford Capital, we must reflect its earnings growth into the valuation. … A PE ratio of 12.83x and expected year-on-year earnings growth of 12% give Burford Capital an acceptable PEG ratio of 1.11x.

Simply Wall St -

We Think Burford Capital (LON:BUR) Can Stay On Top Of Its Debt

Importantly, Burford Capital Limited (LON:BUR) does carry debt. … Either way, since Burford Capital does have more debt than cash, it's worth keeping an eye on its balance sheet. … Over the last three years, Burford Capital saw substantial negative free cash flow, in total.

Simply Wall St -

Burford Capital (LON:BUR) Has A Pretty Healthy Balance Sheet

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … Zooming in on the latest balance sheet data, we can see that Burford Capital had liabilities of US$172.9m due within 12 months and liabilities of US$783.0m due beyond that. … Since Burford Capital does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Do Insiders Own Shares In Burford Capital Limited (LON:BUR)?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … See our latest analysis for Burford Capital AIM:BUR Ownership Summary, June 13th 2019 What Does The Institutional Ownership Tell Us About Burford Capital? … As you can see, institutional investors own 48% of Burford Capital.

Simply Wall St -

Do Burford Capital's (LON:BUR) Earnings Warrant Your Attention?

View our latest analysis for Burford Capital Burford Capital's Improving Profits In the last three years Burford Capital's earnings per share took off like a rocket; fast, and from a low base. … For growth investors like me, Burford Capital's raw rate of earnings growth is a beacon in the night. … Although Burford Capital certainly looks good to me, I would like it more if insiders were buying up shares.

Simply Wall St -

What Do Analysts Think About Burford Capital Limited's (LON:BUR) Future?

After Burford Capital Limited's (LON:BUR) recent earnings announcement in December 2018, the consensus outlook from analysts appear pessimistic, as a 6.8% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 48%. … See our latest analysis for Burford Capital How will Burford Capital perform in the near future? … AIM:BUR Past and Future Earnings, May 23rd 2019 From the current net income level of US$318m and the final forecast of US$480m by 2022, the annual rate of growth for BUR’s earnings is 17%.

Simply Wall St -

How Does Investing In Burford Capital Limited (LON:BUR) Impact The Volatility Of Your Portfolio?

If you're interested in Burford Capital Limited (LON:BUR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … This is reasonably close to the market beta of 1, so the stock has in the past displayed similar levels of volatility to the overall market.

Simply Wall St -

BUR Company Info

Description

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, Investment Management, Litigation Insurance, and New Initiatives. The company offers law firm and business solutions, including commercial litigation finance, portfolio and complex financing, risk management, asset recovery, international arbitration, insolvency and bankruptcy, competition and antitrust, intellectual property, and post-settlement and monetization solutions, as well as legal finance, equity, and advisory services. It operates in North America, Europe, South America, Asia, and internationally. The company was founded in 2009 and is based in St Peter Port, Guernsey.

Details
Name: Burford Capital Limited
BUR
Exchange: AIM
Founded: 2009
£1,962,382,646
218,649,877
Website: http://www.burfordcapital.com
Address: Burford Capital Limited
Regency Court,
Glategny Esplanade,
St Peter Port,
GY1 1WW,
Guernsey
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM BUR Ordinary Shares London Stock Exchange AIM Market GB GBP 21. Oct 2009
OTCPK BRFR.F Ordinary Shares Pink Sheets LLC US USD 21. Oct 2009
DB 9BF Ordinary Shares Deutsche Boerse AG DE EUR 21. Oct 2009
OTCPK BRFR.Y UNSPONSORED ADR Pink Sheets LLC US USD 01. Nov 2017
Number of employees
Current staff
Staff numbers
0
Burford Capital employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/12 21:10
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/11/12
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.