Burford Capital Limited Ordinary Shares (BUR)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable economics, honest accounting, and a margin of safety. Burford is a legal-finance asset manager: it advances capital against litigation and arbitration outcomes. At the close on 2026-10-13, the shares were $3.44 and the market cap was $755.4M. FairStock calculates P/B 0.92, P/E -0.45, ROE -72.12%, ROCE -18.24%, D/E 1.64, FCF yield -24.5%, Altman Z 0.23 and Piotroski 6/9; trailing free cash flow is -$184.9M. Filed figures show the trajectory: FY2023 revenue $1.1B, net income $610.5M, EPS $2.74; FY2024 revenue $546.1M, net income $146.5M, EPS $0.66; FY2025 revenue $413.4M, net income $62.6M, EPS $0.28. Then fiscal Q1 2026, the quarter ended 2026-03-31, produced revenue -$1.7B, net income -$1.6B and EPS -$7.46. Fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue $110.7M, net income $2.2M and EPS $0.01. That is not steady compounding; it is a portfolio whose marks and case outcomes can swing violently. I cannot identify a durable competitive moat from these figures. The FairStock Lynch category is ASSET PLAY because it trades at 0.92x book value. A discount to book can be a margin of safety, but only if the book is real and cash flows recover. With negative free cash flow, high leverage, and a distressed Altman score, I want proof that the asset value is being realized, not just cheapness on paper.

In plain English: Burford Capital puts money into lawsuits and legal claims, hoping to collect when cases end. The business has had a very bumpy stretch, including a huge loss in early 2026, and it is not bringing in cash right now. The share price looks low compared with the company's stated accounting value, but the numbers are too unstable to call it a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer