Burford Capital Limited (BUR.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Burford Capital Limited, through its subsidiaries, provides legal finance products and services.The company offers asset management services, including core legal finance, complex strategies, and post-settlement finance.The company was incorporated in 2009 and is based in Saint Peter Port, Guernsey.

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1.b. Last Insights on BUR

Burford Capital's recent performance was driven by strong Q2 2025 earnings and revenue beats, surpassing estimates by 18.18% and 19.38%, respectively. The company's successful $500 million debt offering in July bolstered its financial health, providing a critical step in its growth strategy. Additionally, a US court ruling in its favor in the litigation case against Argentina has positively impacted its prospects.

1.c. Company Highlights

Last Price	687
Change Percentage	-1.79%
Open	711
Previous Close	699.5
Market Cap ( Millions)	1504
Volume	80211
Year High	1247
Year Low	621
M A 50	768.63
M A 200	939.86

FCF Yield	-5.09%
Dividend Yield	1.35%
ROE	3.06%
Debt / Equity	71.68%
Net Debt / EBIDTA	1129.15%
Price To Book	0.81
Price Earnings Ratio	26.97
Price To FCF	-19.64
Price To sales	10.53
EV / EBITDA	27.44

2. Transcript Summary

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3. NewsRoom

Burford Capital Ltd (BUR) Q3 Results Disappoints CEO Touts Underlying Growth amid Strong Business Activity

Nov -11

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New Strong Sell Stocks for Nov. 10

Nov -10

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Burford Capital (NYSE:BUR): Exploring Valuation After Recent Share Price Decline

Nov -08

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Pound Sterling Conversion Rate for 2025 Interim Dividend

Nov -07

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Burford Capital Ltd (BUR) Q3 2025 Earnings Call Highlights: Strong Portfolio Growth Amid Market ...

Nov -05

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Burford Capital Limited (BUR) Reports Q3 Loss, Misses Revenue Estimates

Nov -05

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Burford Reports 3Q25 and YTD25 Financial Results

Nov -05

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What the Latest Litigation Finance News Means for Burford Capital’s Share Price in 2025

Nov -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.57%)

6. Segments

Capital Provision

Expected Growth: 1.5%

Burford Capital's 1.5% capital provision growth is driven by increasing demand for litigation financing, expansion into new markets, and a strong track record of returns on investment. Additionally, the company's ability to scale its business while maintaining a disciplined approach to risk management has contributed to its growth. Furthermore, the growing trend of companies seeking alternative financing options has also fueled Burford's growth.

Reconciliation

Expected Growth: 1.8%

Burford Capital's 1.8% growth is driven by increasing demand for litigation financing, expansion into new markets, and a strong track record of returns on investment. The company's ability to provide capital to law firms and corporations has fueled growth, alongside its strategic partnerships and investments in technology to enhance operational efficiency.

Asset Management and Other Services

Expected Growth: 2.2%

Burford Capital's 2.2% growth in Asset Management and Other Services is driven by increasing demand for litigation financing, expansion of its investment portfolio, and strategic partnerships. Additionally, the company's ability to provide bespoke financing solutions and its strong track record of returns have attracted more clients, contributing to its growth.

Other Corporate

Expected Growth: 1.2%

Burford Capital's 1.2% growth in Other Corporate segment is driven by increasing demand for litigation financing, expansion into new markets, and strategic investments in technology. Additionally, the company's ability to provide capital solutions to corporates and law firms has contributed to its growth. Furthermore, Burford's strong brand reputation and expertise in the industry have enabled it to attract new clients and increase its market share.

7. Detailed Products

Litigation Finance

Burford Capital provides financing for legal claims, allowing companies and individuals to pursue legal action without incurring the upfront costs.

Portfolio Finance

Burford Capital provides financing for portfolios of legal claims, allowing companies to monetize their legal assets.

Asset-Based Finance

Burford Capital provides financing secured by assets, such as real estate or intellectual property.

Risk Management Solutions

Burford Capital provides risk management solutions, such as insurance and hedging products, to help companies manage legal and financial risks.

8. Burford Capital Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Burford Capital Limited operates in a niche market, and there are limited substitutes for its services. However, the company faces competition from other litigation funding companies, which could potentially substitute its services.

Bargaining Power Of Customers

Burford Capital Limited's customers are typically law firms and corporations, which have limited bargaining power due to the specialized nature of the company's services.

Bargaining Power Of Suppliers

Burford Capital Limited's suppliers are primarily law firms and experts, which have limited bargaining power due to the company's strong market position.

Threat Of New Entrants

While there are barriers to entry in the litigation funding market, new entrants could potentially disrupt Burford Capital Limited's market share. However, the company's established reputation and expertise provide a competitive advantage.

Intensity Of Rivalry

The litigation funding market is highly competitive, with several established players competing for market share. Burford Capital Limited must continually innovate and differentiate its services to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	40.36%
Debt Cost	6.27%
Equity Weight	59.64%
Equity Cost	9.07%
WACC	7.94%
Leverage	67.69%

11. Quality Control: Burford Capital Limited passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Rathbones

A-Score: 6.3/10

Value: 6.5

Growth: 4.3

Quality: 7.2

Yield: 7.5

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Sofina

A-Score: 5.2/10

Value: 3.1

Growth: 5.6

Quality: 7.9

Yield: 2.5

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Hargreaves Lansdown

A-Score: 5.1/10

Value: 3.3

Growth: 5.1

Quality: 9.4

Yield: 1.9

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Latour

A-Score: 4.6/10

Value: 1.4

Growth: 7.3

Quality: 6.4

Yield: 3.1

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

Burford Capital

A-Score: 4.1/10

Value: 4.1

Growth: 8.1

Quality: 5.9

Yield: 1.9

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

Alba

A-Score: 3.9/10

Value: 3.4

Growth: 1.6

Quality: 6.5

Yield: 1.9

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.28%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.94%

Burford Capital Limited - GG00BMGYLN96

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BUR

1.c. Company Highlights

More Volatile

Better Quality

Lower Yield

Earnings Miss

Revenues Miss

Weak Momentum

Earnings Beats

Revenues Beats

Lower Growth

Medium Volatility

Average Growth

Expensive

Higher Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.57%)

6. Segments

Capital Provision

Expected Growth: 1.5%

Reconciliation

Expected Growth: 1.8%

Asset Management and Other Services

Expected Growth: 2.2%

Other Corporate

Expected Growth: 1.2%

7. Detailed Products

Litigation Finance

Portfolio Finance

Asset-Based Finance

Risk Management Solutions

8. Burford Capital Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Burford Capital Limited passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.87$

Current Price

6.87$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA