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Burford Capital (GB:BUR)
LSE:BUR

Burford Capital (BUR) AI Stock Analysis

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Burford Capital

(LSE:BUR)

65Neutral
Burford Capital's overall score is driven by a solid balance sheet with no debt and positive earnings call outcomes, indicating strong financial health and future prospects. However, the operational challenges and technical analysis suggest caution, as potential bearish momentum could impact short-term performance.
Positive Factors
Earnings
Burford reported a better than expected quarter as capital provision income and total revenue were above consensus estimates.
Market Position
Burford is the market leader in litigation finance, an industry undergoing structural transition as more corporations opt to outsource their litigation.
Negative Factors
New Business Metrics
New Burford-only capital provision direct commitments decreased in 3Q compared to 2Q, indicating a slight decline in new business metrics year to date.

Burford Capital (BUR) vs. S&P 500 (SPY)

Burford Capital Business Overview & Revenue Model

Company DescriptionBurford Capital Limited is a leading global finance and investment management firm focused on the legal sector. It provides a range of services including litigation finance, risk management, and asset recovery solutions to law firms and corporate clients. Established in 2009, Burford has become a key player in the legal finance industry, facilitating access to justice by providing capital to cover the costs associated with litigation and arbitration.
How the Company Makes MoneyBurford Capital makes money primarily through its litigation finance business, where it invests capital in legal claims and earns a return if the claim is successful. This involves providing funding to law firms or plaintiffs to cover legal fees and expenses in exchange for a portion of the settlement or judgment. Additionally, Burford generates revenue through its asset management activities, managing third-party capital alongside its own, and earning fees based on the performance of these managed funds. The company's earnings are also influenced by its strategic partnerships with law firms and corporations, which expand its reach and investment opportunities in the legal market.

Burford Capital Financial Statement Overview

Summary
Burford Capital shows a mixed financial performance with a robust balance sheet free of debt, improved cash flow management, and strong equity ratios. However, it faces challenges with declining profitability and operational losses as indicated by its income statement.
Income Statement
45
Neutral
Burford Capital has shown a volatile revenue trajectory with significant fluctuations. The gross profit margin was stable in 2024, but net profit margin decreased due to a drastic decline in revenue and operating losses. The EBIT margin turned negative, indicating operational challenges.
Balance Sheet
75
Positive
The company maintains a solid equity base with no debt in 2024, improving its debt-to-equity position significantly. Equity ratio remains strong, indicating a healthy balance sheet and reduced financial risk.
Cash Flow
65
Positive
Burford Capital's free cash flow improved significantly in 2024, turning positive after previous years of negative cash flows. Operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
341.23M1.08B158.09M-12.76M316.68M
Gross Profit
341.23M1.06B149.85M-18.05M311.83M
EBIT
-769.22M815.67M186.41M-75.08M208.63M
EBITDA
0.00821.19M0.000.00218.93M
Net Income Common Stockholders
146.48M610.52M97.46M-56.43M143.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
469.93M328.11M107.66M180.25M322.19M
Total Assets
6.18B5.84B4.29B3.52B2.73B
Total Debt
0.001.55B1.27B1.03B681.33M
Net Debt
-469.93M-220.55M1.16B854.20M359.14M
Total Liabilities
2.92B2.63B1.90B1.58B1.03B
Stockholders Equity
2.42B2.29B1.74B1.55B1.70B
Cash FlowFree Cash Flow
216.06M-277.89M-466.51M-585.65M180.31M
Operating Cash Flow
216.72M-274.68M-466.10M-585.36M180.67M
Investing Cash Flow
-661.00K-3.21M-407.00K-285.00K-360.00K
Financing Cash Flow
33.83M389.53M399.13M444.83M-45.21M

Burford Capital Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1025.00
Price Trends
50DMA
1065.31
Negative
100DMA
1076.67
Negative
200DMA
1051.74
Negative
Market Momentum
MACD
-6.22
Negative
RSI
48.53
Neutral
STOCH
52.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BUR, the sentiment is Negative. The current price of 1025 is above the 20-day moving average (MA) of 998.55, below the 50-day MA of 1065.31, and below the 200-day MA of 1051.74, indicating a neutral trend. The MACD of -6.22 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BUR.

Burford Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBHAT
81
Outperform
£179.03M7.9512.03%4.23%20.20%6.12%
GBBUR
65
Neutral
£2.25B19.966.07%0.96%-51.54%-77.07%
63
Neutral
$12.46B9.558.14%17103.96%12.70%-4.66%
GBBEG
56
Neutral
£146.27M59.873.11%4.16%13.88%512.00%
54
Neutral
£41.14M447.620.22%31.96%-95.27%
GBLIT
47
Neutral
£56.11M10.02-1.54%2.50%-60.87%-106.15%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BUR
Burford Capital
1,025.00
-219.67
-17.65%
GB:BEG
Begbies Traynor
91.60
-10.85
-10.59%
GB:LIT
Litigation Capital Management
49.10
-67.43
-57.86%
GB:HAT
H&T Group plc
407.00
-7.03
-1.70%
GB:MANO
Manolete Partners Plc
96.00
-34.00
-26.15%

Burford Capital Earnings Call Summary

Earnings Call Date:Mar 03, 2025
(Q4-2024)
|
% Change Since: -17.00%|
Next Earnings Date:Jun 17, 2025
Earnings Call Sentiment Positive
Burford Capital's earnings call for Fiscal Year 2024 highlighted a record-breaking year in terms of cash realizations and net realized gains, driven by successful case outcomes and strong portfolio growth. Despite these positives, the company faced unrealized losses primarily due to discount rate volatility and ongoing legal appeals related to YPF assets. However, the highlights significantly outweigh the lowlights, showcasing a robust financial performance and optimistic future outlook.
Q4-2024 Updates
Positive Updates
Record Cash Realizations
Burford Capital achieved a record year for cash realizations, bringing in more cash than ever before in its history. Realizations were very high, with a significant amount of cash brought in from a variety of successful cases.
Strong Net Realized Gains
The company reported net realized gains as an annual record by a wide margin. Net realized gains were up 75% year-over-year, driven by multiple successful case resolutions.
Portfolio Growth
The portfolio grew at a 15% CAGR over the past several years, with 2024 portfolio growth at about 8%. New business target realizations set a new record.
High Return on Invested Capital (ROIC)
The 2024 net realized gains reflected a more than 100% ROIC, significantly higher than the prior year and above historical averages.
Strong Cash Position
Burford Capital ended the year with over $500 million in cash and securities, a significant increase driven by almost $700 million in cash receipts.
Negative Updates
Unrealized Losses
The fourth quarter of 2024 showed a negative number for unrealized losses, primarily driven by the transfer of previously recognized unrealized gains into realized gains and discount rate volatility.
Operating Expenses
While operating expenses were down significantly, there were accounting movements due to share-based compensation liabilities affected by stock price changes.
Pending YPF Appeals
Ongoing appeals in the YPF-related assets, with Argentina appealing liability to the Second Circuit and cross appeals on YPF corporate defendants, are adding uncertainty around the asset's future resolution.
Company Guidance
During the call, Burford Capital provided guidance indicating a strong fiscal year 2024, with a significant focus on cash performance and portfolio growth. The company reported a record-breaking $641 million in realizations, leading to $327 million in net realized gains, which represents a 75% increase from the prior year. The return on invested capital (ROIC) was noted at 108%, reflecting robust portfolio performance. The portfolio has grown at a compound annual growth rate (CAGR) of 15% over the last several years, with a specific 8% growth during 2024. Target realizations for new business were up significantly, setting a new record. The company also highlighted a continued focus on cash generation, with nearly $700 million in cash receipts and an increase in net realized gains that more than doubled from the previous year. Additionally, the company is maintaining a strategic focus on both new business growth and high levels of portfolio activity, anticipating continued strong performance in the upcoming fiscal periods.

Burford Capital Corporate Events

Financial Disclosures
Burford Capital to Announce 1Q25 Financial Results
Neutral
Apr 30, 2025

Burford Capital announced it will release its first quarter 2025 financial results on May 7, 2025, followed by a conference call for investors and analysts. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the legal finance industry.

Spark’s Take on GB:BUR Stock

According to Spark, TipRanks’ AI Analyst, GB:BUR is a Neutral.

Burford Capital’s overall score is driven by a solid balance sheet with no debt and positive earnings call outcomes, indicating strong financial health and future prospects. However, the operational challenges and technical analysis suggest caution, as potential bearish momentum could impact short-term performance.

To see Spark’s full report on GB:BUR stock, click here.

Executive/Board ChangesShareholder Meetings
Burford Capital Defends Directors Amid ISS Recommendation
Neutral
Apr 28, 2025

Burford Capital Limited is urging shareholders to disregard the recommendation by Institutional Shareholder Services (ISS) to vote against the re-election of directors Christopher Halmy and Robert Gillespie. The company argues that ISS’s recommendation is based on a misunderstanding of facts and emphasizes the directors’ significant contributions, including overseeing Burford’s successful transition to a US domestic public company. Glass Lewis supports the re-election of both directors, highlighting their qualifications and the successful engagement with the SEC that solidified Burford’s industry leadership.

Spark’s Take on GB:BUR Stock

According to Spark, TipRanks’ AI Analyst, GB:BUR is a Neutral.

Burford Capital’s overall score is driven by a solid balance sheet with no debt and positive earnings call outcomes, indicating strong financial health and future prospects. However, the operational challenges and technical analysis suggest caution, as potential bearish momentum could impact short-term performance.

To see Spark’s full report on GB:BUR stock, click here.

Delistings and Listing ChangesRegulatory Filings and Compliance
Burford Capital Issues New Shares Following LTIP Vesting
Neutral
Apr 10, 2025

Burford Capital announced the vesting of restricted share units and performance-based restricted share units for its managerial staff under the 2016 Long Term Incentive Plan. The company issued 340,685 new shares to satisfy these awards, which will be listed on both the AIM market of the London Stock Exchange and the New York Stock Exchange. This issuance increases Burford’s total voting rights, impacting shareholder calculations under UK financial regulations.

Spark’s Take on GB:BUR Stock

According to Spark, TipRanks’ AI Analyst, GB:BUR is a Neutral.

Burford Capital’s overall score reflects a balance between strong earnings performance and robust financial management, against the backdrop of operational challenges and technical weakness. The positive outlook from the earnings call and recent corporate events further support the stock’s potential, although technical indicators suggest caution.

To see Spark’s full report on GB:BUR stock, click here.

Shareholder MeetingsRegulatory Filings and Compliance
Burford Capital Enhances Shareholder Engagement with Digital Proxy Access
Positive
Apr 4, 2025

Burford Capital has filed its definitive proxy statement, additional proxy soliciting materials, and the 2024 annual report with the US Securities and Exchange Commission. The company has opted to provide shareholders with internet access to these materials, facilitating online voting for its upcoming annual general meeting on May 14, 2025. This move reflects Burford’s commitment to leveraging digital solutions for shareholder engagement, potentially enhancing transparency and accessibility for its stakeholders.

Shareholder MeetingsBusiness Operations and Strategy
Burford Capital Hosts 2025 Investor Day, Strengthening Market Position
Positive
Apr 3, 2025

Burford Capital hosted its 2025 Investor Day in New York City and via webcast, providing a strategic update to investors. This event underscores Burford’s commitment to transparency and engagement with stakeholders, potentially strengthening its market position and investor relations in the legal finance industry.

Stock BuybackBusiness Operations and Strategy
Burford Capital Launches $20 Million Share Repurchase Program
Neutral
Mar 17, 2025

Burford Capital announced a share repurchase program authorized by its board of directors to buy back up to $20 million of its ordinary shares. This initiative is linked to Burford’s Deferred Compensation Plan and aims to manage future obligations, with shares potentially being used for compensation plans. The program will be executed in the U.S. under specific regulatory guidelines and can be adjusted by Burford based on market conditions, reflecting the company’s strategic approach to managing its equity and compensation structures.

Other
Burford Capital Executives Invest Heavily in Company Shares
Positive
Mar 11, 2025

Burford Capital announced significant investments by its executive officers and a non-executive director in the company’s ordinary shares, totaling over $17.5 million. This move reflects strong confidence in the company’s performance and future prospects, as highlighted by CEO Christopher Bogart, who emphasized alignment with shareholders and the potential for generating shareholder value.

Financial DisclosuresRegulatory Filings and Compliance
Burford Capital Files 2024 Annual Report
Neutral
Mar 4, 2025

Burford Capital Limited has filed its Annual Report on Form 10-K for the year ending December 31, 2024, with the US Securities and Exchange Commission. This filing, which includes audited consolidated financial statements, marks a significant step in the company’s financial reporting and transparency efforts, potentially impacting its operations and stakeholder confidence.

DividendsFinancial Disclosures
Burford Capital Reports 2024 Financial Results and Declares Dividend
Positive
Mar 3, 2025

Burford Capital announced its preliminary unaudited financial results for the fourth quarter and full year of 2024, highlighting a declared final dividend of $0.0625 per share, pending shareholder approval. This announcement reflects Burford’s continued focus on delivering value to shareholders and maintaining its position as a leader in legal finance and asset management.

Business Operations and StrategyFinancial Disclosures
Burford Capital to Release FY24 Results and Update Reporting Framework
Neutral
Feb 25, 2025

Burford Capital announced the release date for its fourth quarter and full-year 2024 financial results, set for March 3, 2025. The company also previewed changes to its financial reporting framework as it transitions to a US domestic issuer. This shift involves enhanced segment reporting and streamlined disclosures, reflecting the company’s growing US-based investor ownership. These changes are expected to provide clearer insights into Burford’s operations and shareholder value generation, potentially impacting its market positioning and stakeholder relations.

Business Operations and Strategy
Burford Capital to Host Investor Day in 2025
Positive
Feb 4, 2025

Burford Capital has announced its 2025 Investor Day to be held in New York City on April 3, 2025, with options for in-person attendance and live webcast. The event will provide strategic updates about the company’s operations and serve as an introduction for new investors and analysts, indicating Burford’s effort to strengthen its market presence and investor relations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.