Burford Stock Buy Hold or Sell Recommendation

BUR
 Stock
  

USD 9.53  0.22  2.26%   

Considering the 90-day investment horizon and your slightly conservative level of risk, our recommendation regarding Burford Capital is 'Strong Buy'. Macroaxis provides Burford Capital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BUR positions. The advice algorithm takes into account all of Burford Capital's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Burford Capital's buy-and-hold perspective. Continue to Burford Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Burford and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Burford Capital.

Execute Burford Capital Buy or Sell Advice

The Burford recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Burford Capital. Macroaxis does not own or have any residual interests in Burford Capital or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Burford Capital's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Burford CapitalBuy Burford Capital
Strong Buy

Volatility

Not too volatileDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Burford Capital has a Risk Adjusted Performance of 0.0599, Jensen Alpha of 0.2326, Total Risk Alpha of 0.3696, Sortino Ratio of 0.1069 and Treynor Ratio of 0.0962
We provide trade advice to complement the prevailing expert consensus on Burford Capital. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Burford Capital is not overpriced, please confirm all Burford Capital fundamentals, including its price to sales, book value per share, current asset, as well as the relationship between the cash and equivalents and beta . Given that Burford Capital has a number of shares shorted of 796.71 K, we suggest you to validate Burford Capital market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Burford Capital Trading Alerts and Improvement Suggestions

Burford Capital was previously known as BURFORD CAPITAL LTD and was traded on New York Stock Exchange under the symbol BRFRY.
The company reported the last year's revenue of 156.59 M. Reported Net Loss for the year was (72.07 M) with profit before taxes, overhead, and interest of 151.29 M.
Burford Capital has about 355.59 M in cash with (585.36 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.62.
Burford Capital has a frail financial position based on the latest SEC disclosures
Roughly 74.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.streetinsider.com: Burford Capital Notification of Transaction by Person Discharging Managerial Responsibility - StreetInsider.com

Burford Capital current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Burford analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Burford analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price5.21
Target Median Price5.21
Target High Price5.21
Recommendation Mean2.00
Number Of Analyst Opinions1
Target Low Price5.21
Average Consensus Strong Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Burford Capital Returns Distribution Density

The distribution of Burford Capital's historical returns is an attempt to chart the future uncertainty of Burford Capital's future price movements. The chart of the probability distribution of Burford Capital stock daily returns describes the distribution of returns around its average expected value. We use Burford Capital price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Burford Capital returns is essential to provide solid investment advice for Burford Capital stock.
Mean Return0.09Value At Risk-3.77
Potential Upside3.81Standard Deviation2.39
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Burford Capital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Burford Capital Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Burford Capital or Banking sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Burford Capital stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Burford stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.23
β
Beta against DOW0.88
σ
Overall volatility
2.39
Ir
Information ratio 0.11

Burford Capital Volatility Alert

Burford Capital currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.23. However, we advise investors to further question Burford Capital expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Burford Capital's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Burford Capital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Burford Capital Implied Volatility

Burford Capital's implied volatility exposes the market's sentiment of Burford Capital stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Burford Capital's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Burford Capital stock will not fluctuate a lot when Burford Capital's options are near their expiration.

Burford Capital Fundamentals Vs Peers

Comparing Burford Capital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Burford Capital's direct or indirect competition across all of the common fundamentals between Burford Capital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Burford Capital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Burford Capital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Burford Capital by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Burford Capital to competition
FundamentalsBurford CapitalPeer Average
Return On Equity(2.93) %(0.31) %
Return On Asset0.20 %(0.14) %
Profit Margin(46.02) %(1.27) %
Operating Margin6.88 %(5.51) %
Current Valuation2.92 B16.62 B
Shares Outstanding219.05 M571.82 M
Shares Owned by Insiders13.99 %10.09 %
Shares Owned by Institutions73.93 %39.21 %
Number of Shares Shorted796.71 K4.71 M
Price to Earning(4.52) X28.72 X
Price to Book1.34 X9.51 X
Price to Sales13.72 X11.42 X
Revenue156.59 M9.43 B
Gross Profit151.29 M27.38 B
EBITDA21.45 M3.9 B
Net Income(72.07 M)570.98 M
Cash and Equivalents355.59 M2.7 B
Cash per Share1.62 X5.01 X
Total Debt1.03 B5.32 B
Debt to Equity0.53 %48.70 %
Current Ratio7.72 X2.16 X
Book Value Per Share7.30 X1.93 K
Cash Flow from Operations(585.36 M)971.22 M
Short Ratio3.50 X4.00 X
Earnings Per Share(0.22) X3.12 X
Number of Employees14018.84 K
Beta1.23-0.15
Market Capitalization2.15 B19.03 B
Total Asset594.11 M29.47 B
Retained Earnings(70.98 M)9.33 B
Working Capital194.62 M1.48 B
Current Asset222.32 M9.34 B
Current Liabilities27.7 M7.9 B
   Burford Capital exotic insider transaction detected [view details]

About Burford Capital Buy or Sell Advice

When is the right time to buy or sell Burford Capital? Buying financial instruments such as Burford Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Burford Capital investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 (projected)
Current Assets4.64 M6.07 M
Total Assets3.52 B3.44 B

Use Investing Ideas to Build Portfolios

In addition to having Burford Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Gold and Gold Mining Thematic Idea Now

Gold and Gold Mining
Gold and Gold Mining Theme
Large and mid-size companies, ETFs and funds that are either investing, exploring or producing, gold or indirectly involved in trading or making gold products. The Gold and Gold Mining theme has 100 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Gold and Gold Mining Theme or any other thematic opportunities.
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Continue to Burford Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Burford Capital information on this page should be used as a complementary analysis to other Burford Capital's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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Is Burford Capital's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Burford Capital. If investors know Burford will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Burford Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.31
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
-0.28
Return On Assets
0.002
Return On Equity
-0.0293
The market value of Burford Capital is measured differently than its book value, which is the value of Burford that is recorded on the company's balance sheet. Investors also form their own opinion of Burford Capital's value that differs from its market value or its book value, called intrinsic value, which is Burford Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Burford Capital's market value can be influenced by many factors that don't directly affect Burford Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Burford Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine Burford Capital value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Burford Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.