Burford Capital (BUR) AI Stock Analysis

• Market Cap: £1.51B
• Dividend Yield: 1.19%
• Average Volume (3M): 167.59K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.87
• Revenue Growth: -37.43%
• EPS Growth: -67.39%
• Country: UK
• Employees: 160
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.07
• Shares Outstanding: 218,888,500
• 10 Day Avg. Volume: 218,918
• 30 Day Avg. Volume: 167,588
• PEG Ratio: -0.26
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 13.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,472.45
• Price Target Upside: 110.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 718.00p ▲(2.87% Upside)

Burford Capital's overall score reflects a mixed outlook. The strong balance sheet and improved cash flow are positive, but operational challenges and bearish technical indicators weigh on the score. The earnings call and corporate events provide some optimism, but legal uncertainties and valuation concerns limit the upside.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt reduces financial risk and provides Burford Capital with flexibility to invest in growth opportunities.

Portfolio Growth

Significant growth in deployments indicates robust demand for Burford's services, enhancing its market position and supporting long-term revenue growth.

Steady Internal Rate of Return

Consistent IRR reflects effective management and investment strategy, ensuring sustained profitability and investor confidence over the long term.

Negative Factors

Declining Revenue

A significant drop in revenue suggests potential challenges in maintaining growth momentum, which could impact financial performance and strategic initiatives.

Litigation Delays

Litigation delays can lead to unpredictable cash flows and financial results, complicating planning and potentially affecting investor sentiment.

Operational Challenges

Operational challenges and declining profitability indicate potential inefficiencies, which could hinder Burford's ability to capitalize on growth opportunities.

Burford Capital Business Overview & Revenue Model

Company Description

Burford Capital (BUR) is a leading provider of finance and investment for the global legal market, specializing in legal finance and litigation funding. The company primarily operates in the legal finance sector, offering capital solutions to law firms and clients engaged in commercial litigation and arbitration. Burford's core products include litigation finance, which involves funding legal cases in exchange for a share of the proceeds, as well as legal asset management and risk management services.

How the Company Makes Money

Burford Capital generates revenue primarily through its litigation finance model. The company funds a variety of legal claims, covering the costs associated with litigation or arbitration, and in return, it receives a portion of the proceeds if the case is successful. This revenue model allows Burford to earn returns that are typically higher than traditional financing options, as the company charges a premium for the risk it undertakes. Key revenue streams include returns from resolved legal cases, interest on capital deployed, and fees for advisory services related to legal asset management. Additionally, Burford has established significant partnerships with law firms and corporations, which help to bolster its deal flow and enhance its market presence, further contributing to its earnings.

Burford Capital Financial Statement Overview

Summary

Burford Capital shows a mixed financial performance. The balance sheet is strong with no debt, indicating reduced financial risk. However, the income statement reveals operational challenges with declining profitability, and the cash flow has improved, suggesting potential for recovery.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	371.23M	472.25M	1.08B	270.62M	-12.76M	316.68M
Gross Profit	262.56M	341.23M	1.06B	195.62M	-18.05M	311.83M
EBITDA	153.92M	253.59M	821.19M	113.38M	0.00	218.93M
Net Income	85.99M	146.48M	610.52M	30.51M	-56.43M	143.28M
Balance Sheet
Total Assets	6.69B	6.18B	5.84B	4.29B	3.52B	2.73B
Cash, Cash Equivalents and Short-Term Investments	756.74M	548.95M	328.11M	107.66M	180.25M	322.19M
Total Debt	0.00	1.78B	1.55B	1.27B	1.03B	681.33M
Total Liabilities	3.50B	2.92B	2.63B	1.90B	1.58B	1.03B
Stockholders Equity	2.50B	2.42B	2.29B	1.74B	1.55B	1.70B
Cash Flow
Free Cash Flow	205.85M	216.06M	-277.89M	-466.51M	-585.65M	180.31M
Operating Cash Flow	206.06M	216.72M	-274.68M	-466.10M	-585.36M	180.67M
Investing Cash Flow	-8.47M	-661.00K	-3.21M	-407.00K	-285.00K	-360.00K
Financing Cash Flow	24.45M	33.83M	389.53M	399.13M	444.83M	-45.21M

Burford Capital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 698.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BUR, the sentiment is Neutral. The current price of 698 is above the 20-day moving average (MA) of 692.02, below the 50-day MA of 723.55, and below the 200-day MA of 911.60, indicating a neutral trend. The MACD of -9.72 indicates Negative momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 56.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BUR.

Burford Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABDN	78 Outperform	£3.54B	11.16	6.50%	7.25%	-7.11%	0.45%
N91	78 Outperform	£3.65B	11.44	41.56%	6.03%	4.28%	5.18%
EMG	76 Outperform	£2.45B	17.65	12.23%	5.79%	-10.85%	-42.02%
PHLL	76 Outperform	£3.41B	4.67	19.58%	10.21%	11.03%	176.31%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BUR	59 Neutral	£1.51B	23.46	3.62%	1.19%	-37.43%	-67.39%
BPT	54 Neutral	£2.38B	39.97	6.88%	2.89%	62.91%	-15.13%

Burford Capital Corporate Events

Burford Capital Announces Routine Estate Planning Transactions

Burford Capital announced transactions involving its Chief Investment Officer, Jonathan Molot, who transferred interests in Jonathan Molot LLC among various trusts as part of routine estate planning. These transactions do not alter the beneficial ownership of shares held by Mr. Molot and his family, indicating no impact on the company’s operations or market positioning.

Burford Capital Announces 2025 Interim Dividend Conversion Rate

Burford Capital announced the pound sterling conversion rate for its interim dividend for the year ending December 31, 2025. Shareholders who opt to receive their dividend in pound sterling will receive 4.785971 pence per ordinary share, based on the exchange rate set on November 5, 2025. This announcement provides clarity on the financial returns for shareholders and reinforces Burford’s commitment to transparent financial practices.

Burford Capital Announces Strong Financial Results and Strategic Broker Appointment

Burford Capital has reported strong financial results for the third quarter and year-to-date 2025, with significant growth and high levels of cash realization from its active portfolio. The company has also announced the appointment of Merrill Lynch International as a joint corporate broker, which is expected to enhance its market positioning alongside existing brokers. This strategic move, coupled with the positive financial performance, underscores Burford’s robust operational growth and its potential impact on stakeholders.

Burford Capital Appoints Merrill Lynch as Joint Broker

Burford Capital has appointed Merrill Lynch International as a joint corporate broker, enhancing its brokerage team alongside Deutsche Bank AG, Jefferies International Limited, and Joh. Berenberg, Gossler & Co. KG. This strategic move is expected to strengthen Burford’s market positioning and potentially impact its operations positively by leveraging the expertise of a leading financial institution.

Burford Capital Sets Date for Q3 2025 Financial Results Release

Burford Capital announced the release date for its third-quarter 2025 financial results, scheduled for November 5, 2025. The company will host a conference call for investors and analysts to discuss these results, emphasizing its commitment to transparency and engagement with stakeholders. This announcement underscores Burford’s strategic focus on maintaining strong communication with its investors and analysts, potentially influencing its market perception and stakeholder confidence.

Burford Capital Updates on YPF Appeal Proceedings

Burford Capital Limited has provided an update on the status of the YPF matter, detailing the appeal process following a $16 billion judgment against Argentina. The appeal is set for oral argument on October 29, 2025, with potential implications for the company’s operations depending on the outcome. The case involves complex legal proceedings and could significantly impact stakeholders, as Argentina’s efforts to delay proceedings may affect the timeline for resolution.

Burford Capital Announces Share Vesting and New Issuance

Burford Capital announced the vesting of restricted share units (RSUs) and performance-based RSUs for its Chief Financial Officer, Jordan Licht, under its 2016 Long Term Incentive Plan. The company issued 76,909 new shares to satisfy firm-wide vesting awards, which will be listed on the AIM market of the London Stock Exchange and the New York Stock Exchange. This issuance increases Burford’s total voting rights to 218,888,500, impacting shareholder calculations under UK Financial Conduct Authority rules. Additionally, the Chief Strategy Officer, Elizabeth O’Connell, transferred shares to the CEO, Christopher P. Bogart, as part of estate planning.

Burford Capital Declares Interim Dividend for 2025

Burford Capital announced an interim dividend of 6.25 US cents per ordinary share for the year ending December 31, 2025, with payment expected on December 4, 2025. The board plans to maintain an annual dividend of 12.50 US cents per share, payable semi-annually, without regular increases, which reflects a stable financial strategy aimed at providing consistent returns to shareholders.