Investing in Burford Capital Five Years Ago Resulted in 36% Loss
January 5, 2023
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Burford Capital Intrinsic Value – Burford Capital ($NYSE:BUR) is one of the world’s largest specialist finance companies. It provides both litigation financing and asset recovery services to clients in the US, UK, and Europe. Five years ago, if investors had chosen to invest in Burford Capital, they would have seen a 36% loss today. This significant decline in share price can be attributed to a few factors. First, the company has been hit hard by the global pandemic, which has caused a decline in demand for their services and a reduction in revenue. Additionally, Burford Capital has been subject to negative press due to a number of legal disputes and a decrease in investor confidence. The 36% loss can also be attributed to changes in the corporate landscape over the past five years. With the rise of new technologies, companies have had to adjust their strategies in order to remain competitive in the market. Burford Capital has not been able to do this in a timely fashion, thus resulting in a decrease in their stock price. Despite all of this, Burford Capital remains one of the most established and well-respected finance companies in the world. Their services are still very much sought after and they have taken steps to ensure that they remain competitive in the industry. Overall, investing in Burford Capital five years ago has resulted in a 36% loss.
However, with their experience and reputation in the finance industry, investors may still consider Burford Capital as a viable option for their portfolios.
Share Price
Despite this, news coverage of the company has so far been mostly positive. On Tuesday, Burford Capital stock opened at $8.5 and closed at $8.4, up 2.5% from the prior closing price of $8.2. This suggests that, despite the overall loss, there have been periods of growth during the five-year period. There are a number of factors that may have contributed to the 36% loss. One is the economic climate over the past five years, which has been challenging for many businesses. Another may be the company’s strategic decisions, such as its decision to invest in certain projects or industries.
It is also important to note that the stock market is highly volatile and can change quickly over time. Therefore, it is impossible to predict with certainty whether Burford Capital will continue to grow or decline in the future. As such, potential investors should always conduct thorough research before investing in any stock. Overall, investing in Burford Capital five years ago has resulted in a 36% loss, but it is important to consider both the positive and negative aspects of the company before making an investment decision. It is also important to remember that the stock market can be unpredictable and that investing involves risk. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Burford Capital. More…
| Total Revenues | Net Income | Net Margin |
| -11.57 | -64.98 | 561.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Burford Capital. More…
| Operations | Investing | Financing |
| -585.36 | -0.28 | 444.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Burford Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.85k | 1.81k | 7.08 |
Key Ratios Snapshot
Some of the financial key ratios for Burford Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.3% | – | – |
| FCF Margin | ROE | ROA |
| 5059.6% | -1.1% | -0.5% |
VI Analysis – Burford Capital Intrinsic Value Calculator
BURFORD CAPITAL is an investment company that focuses on providing capital to legal cases. Its fundamentals reflect its long term potential, and this can be seen through its fair value of around $9.6, which is calculated by VI Line. Currently, the stock is trading at $8.4, undervalued by 13%. This could be attributed to the company’s recent financial results, which have not been as strong as expected. The company’s balance sheet shows a strong liquidity position with no long-term debt, as well as a healthy level of equity. BURFORD CAPITAL also has a good return on investment, which is a good sign for long-term growth. Overall, BURFORD CAPITAL looks like a good investment opportunity at its current price. It has strong fundamentals, a solid dividend yield, and potential for long-term growth. While the recent financial performance has not been ideal, the stock is still trading at an attractive price, making it an attractive option for those looking to invest in an undervalued company. More…
VI Peers
The company has a strong market position and is well-positioned to compete against its competitors: Prime Financial Group Ltd, Legal & General Group PLC, Blue Owl Capital Inc.
– Prime Financial Group Ltd ($ASX:PFG)
Since its establishment in 1992, Prime Financial Group has been providing a range of financial services to clients in Australia and New Zealand. These services include home loans, personal loans, credit cards, and investment products. The company has a market capitalization of $47.27 million and a return on equity of 8.53%. Prime Financial Group is a publicly listed company on the Australian Securities Exchange and has a strong presence in the Australian financial services industry.
– Legal & General Group PLC ($LSE:LGEN)
As of 2022, Legal & General Group PLC has a market capitalization of 13.66 billion and a return on equity of 15.54%. The company is a financial services provider that offers a range of products and services, including life insurance, annuities, investments, and retirement products. It has operations in the United Kingdom, the United States, and Europe.
– Blue Owl Capital Inc ($NYSE:OWL)
Blue Owl Capital Inc. is a publicly traded company with a market capitalization of $3.95 billion as of 2022. The company has a negative return on equity of -10.74%. Blue Owl Capital is a leading provider of financial services and products to individuals, businesses, and institutions. The company offers a wide range of services, including investment banking, asset management, capital markets, and advisory services.
Summary
Investing in Burford Capital has been a difficult decision for many investors over the past five years, resulting in a 36% loss. Despite this, news coverage of the company has been mostly positive, with analysts noting its potential for growth. For investors considering Burford Capital, it is important to carefully assess the risks and potential rewards when making an investment decision. The stock market can be unpredictable, so it is important to research the company and its industry thoroughly before investing.
Additionally, it might be beneficial to diversify investments across multiple companies, sectors, and regions in order to spread risk and increase potential returns.
