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BUR Stock Analysis - Burford Capital Ltd AI Rating

BUR NYSE Finance Services Y7 CIK: 0001714174
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
75% Confidence

📊 BUR Key Takeaways

Revenue: $413.4M
Net Margin: 15.1%
Free Cash Flow: $-29.3M
Current Ratio: N/A
Debt/Equity: 0.87x
EPS: $0.28
AI Rating: SELL with 75% confidence

Investment Thesis

Burford Capital exhibits deteriorating operational performance with revenue declining 24.3% YoY and net income falling 13.3% YoY, indicating core business contraction in its litigation finance segment. The company faces severe cash flow challenges with negative operating cash flow of -$29.0M and negative free cash flow of -$7.1% margin, coupled with weak interest coverage of 1.6x and elevated leverage, raising concerns about sustainability of capital allocation and debt servicing capability.

BUR Strengths

  • + Strong operating margin of 56.2% demonstrates pricing power and operational efficiency in core business
  • + Solid equity base of $2.4B provides capital buffer with debt-to-equity ratio of 0.87x below concerning levels
  • + Substantial cash reserves of $566.4M offer liquidity cushion for near-term obligations and strategic investments

BUR Risks

  • ! Significant revenue decline of 24.3% YoY suggests loss of market share or reduced case deployment in litigation finance market
  • ! Negative operating cash flow of -$29.0M despite $62.6M net income indicates poor cash conversion and potential earnings quality issues
  • ! Weak interest coverage ratio of 1.6x combined with $2.1B long-term debt creates refinancing risk and constrains financial flexibility
  • ! Diluted EPS collapsed 57.6% YoY signaling substantial shareholder value destruction and potential share dilution

Key Metrics to Watch

BUR Financial Metrics

Revenue
$413.4M
Net Income
$62.6M
EPS (Diluted)
$0.28
Free Cash Flow
$-29.3M
Total Assets
$6.6B
Cash Position
$566.4M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

BUR Profitability Ratios

Gross Margin N/A
Operating Margin 56.2%
Net Margin 15.1%
ROE 2.6%
ROA 0.9%
FCF Margin -7.1%

BUR vs Finance Sector

How Burford Capital Ltd compares to Finance sector averages

Net Margin
BUR 15.1%
vs
Sector Avg 25.0%
BUR Sector
ROE
BUR 2.6%
vs
Sector Avg 12.0%
BUR Sector
Current Ratio
BUR 0.0x
vs
Sector Avg 1.2x
BUR Sector
Debt/Equity
BUR 0.9x
vs
Sector Avg 2.0x
BUR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BUR Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.87x
Debt/Assets
52.9%
Interest Coverage
1.59x
Long-term Debt
$2.1B

BUR 5-Year Financial Trend

BUR 5-year financial data: Year 2024: Revenue $1.1B, Net Income $30.5M, EPS $0.14. Year 2025: Revenue $1.1B, Net Income $610.5M, EPS $2.74.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Burford Capital Ltd's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.74 reflects profitable operations.

BUR Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-7.1%
Free cash flow / Revenue

BUR Quarterly Performance

Quarterly financial performance data for Burford Capital Ltd including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $69.8M -$19.2M $-0.09
Q2 2025 $159.7M $23.8M $0.11
Q1 2025 $44.3M -$29.9M $-0.14

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BUR Capital Allocation

Operating Cash Flow
-$29.0M
Cash generated from operations
Stock Buybacks
$15.3M
Shares repurchased (TTM)
Capital Expenditures
$284.0K
Investment in assets
Dividends
None
No dividend program

BUR SEC Filings

Access official SEC EDGAR filings for Burford Capital Ltd (CIK: 0001714174)

📋 Recent SEC Filings

Date Form Document Action
Mar 9, 2026 4 xslF345X05/wk-form4_1773089082.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773089013.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088934.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088879.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088803.xml View →

Frequently Asked Questions about BUR

What is the AI rating for BUR?

Burford Capital Ltd (BUR) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BUR's key strengths?

Strong operating margin of 56.2% demonstrates pricing power and operational efficiency in core business. Solid equity base of $2.4B provides capital buffer with debt-to-equity ratio of 0.87x below concerning levels.

What are the risks of investing in BUR?

Significant revenue decline of 24.3% YoY suggests loss of market share or reduced case deployment in litigation finance market. Negative operating cash flow of -$29.0M despite $62.6M net income indicates poor cash conversion and potential earnings quality issues.

What is BUR's revenue and growth?

Burford Capital Ltd reported revenue of $413.4M.

Does BUR pay dividends?

Burford Capital Ltd does not currently pay dividends.

Where can I find BUR SEC filings?

Official SEC filings for Burford Capital Ltd (CIK: 0001714174) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BUR's EPS?

Burford Capital Ltd has a diluted EPS of $0.28.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI