📊 BUR Key Takeaways
Is Burford Capital Ltd (BUR) a Good Investment?
Burford Capital is in severe financial distress with massive asset write-downs (-1.6B net income), negative operating cash flow of -136.6M, and unsustainable leverage of 2.90x debt-to-equity. At current burn rates, the company's 702.6M cash reserve provides only ~5 quarters of runway before liquidity crisis.
Burford Capital remains fundamentally supported by strong operating margins, a sizable asset base, and meaningful equity capital, but recent results show weaker quality than headline profitability suggests. Revenue, net income, and especially diluted EPS declined materially year over year, while operating and free cash flow were negative and interest coverage was thin, indicating a business that is still profitable but carrying elevated execution and balance sheet risk.
Burford Capital Ltd Key Strengths (BUR)
- Maintains 702.6M in cash providing short-term liquidity cushion
- Total asset base of 4.3B provides potential recovery value in liquidation scenario
- Elevated insider activity (18 Form 4 filings) may indicate management confidence, though limited given context
- High operating margin of 56.2% indicates strong earnings power when case outcomes are favorable
- Large asset base and $2.45B of equity provide a meaningful capital cushion for a specialty finance model
- Cash balance of $566.44M supports near-term liquidity and portfolio funding flexibility
BUR Stock Risks: Burford Capital Ltd Investment Risks
- Negative free cash flow of -136.6M quarterly; company burning through reserves unsustainably
- Interest coverage ratio of -32.9x indicates inability to service 2.4B long-term debt from operations
- Massive asset write-downs suggest portfolio deterioration; additional impairments likely given litigation finance exposure
- Debt-to-equity ratio of 2.90x with declining equity base increases solvency risk
- Revenue decline of 24.3% YoY combined with -1.6B operating loss signals fundamental business failure
- Revenue fell 24.3% YoY and diluted EPS fell 57.6% YoY, pointing to volatile and weakening earnings momentum
- Negative operating cash flow and free cash flow suggest reported profits are not currently converting into cash
- Interest coverage of 1.6x and long-term debt of $2.13B create pressure if realizations disappoint or financing costs stay elevated
Key Metrics to Watch
- Quarterly cash balance and monthly cash burn rate
- Operating cash flow stabilization or continued deterioration
- Debt covenant compliance and refinancing ability
- Portfolio valuations and realized vs. unrealized losses
- Stockholders equity erosion trajectory
- Operating cash flow and free cash flow conversion versus net income
- Interest coverage and debt-to-equity trend as portfolio realizations evolve
Burford Capital Ltd (BUR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
BUR Profit Margin, ROE & Profitability Analysis
BUR vs Finance Sector: How Burford Capital Ltd Compares
How Burford Capital Ltd compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Burford Capital Ltd Stock Overvalued? BUR Valuation Analysis 2026
Based on fundamental analysis, Burford Capital Ltd has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Burford Capital Ltd Balance Sheet: BUR Debt, Cash & Liquidity
BUR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
BUR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | -$1.7B | $30.9M | $0.14 |
| 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.
Burford Capital Ltd Dividends, Buybacks & Capital Allocation
BUR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Burford Capital Ltd (CIK: 0001714174)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BUR
What is the AI rating for BUR?
Burford Capital Ltd (BUR) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BUR's key strengths?
Claude: Maintains 702.6M in cash providing short-term liquidity cushion. Total asset base of 4.3B provides potential recovery value in liquidation scenario. ChatGPT: High operating margin of 56.2% indicates strong earnings power when case outcomes are favorable. Large asset base and $2.45B of equity provide a meaningful capital cushion for a specialty finance model.
What are the risks of investing in BUR?
Claude: Negative free cash flow of -136.6M quarterly; company burning through reserves unsustainably. Interest coverage ratio of -32.9x indicates inability to service 2.4B long-term debt from operations. ChatGPT: Revenue fell 24.3% YoY and diluted EPS fell 57.6% YoY, pointing to volatile and weakening earnings momentum. Negative operating cash flow and free cash flow suggest reported profits are not currently converting into cash.
What is BUR's revenue and growth?
Burford Capital Ltd reported revenue of $-1.7B.
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 $-7.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BUR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Burford Capital Ltd has a C grade with 86% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BUR stock overvalued or undervalued?
Valuation metrics for BUR: ROE of -197.1% (sector avg: 12%), net margin of 94.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is BUR's AI grade for 2026?
Our dual AI analysis gives Burford Capital Ltd a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BUR's free cash flow?
Burford Capital Ltd's operating cash flow is $-136.6M, with capital expenditures of $41.0K. FCF margin is 7.9%.
How does BUR compare to other Finance stocks?
Vs Finance sector averages: Net margin 94.9% (avg: 25%), ROE -197.1% (avg: 12%), current ratio N/A (avg: 1.2).
Is Burford Capital Ltd carrying too much debt?
BUR has a debt-to-equity ratio of 2.90x, which is above the Finance sector average of 2x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.