Added to YB: 2026-04-03
Pitch date: 2026-03-31
BUR [neutral]
Burford Capital Limited
-6.12%
current return
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
Burford Capital Limited provides legal finance products and services worldwide. The company operates in two segments, Principal Finance, and Asset Management and Other Services.
Market Cap
$880.2M
Pitch Price
$4.41
Price Target
N/A
Dividend
3.10%
EV/EBITDA
14.89
P/E
14.39
EV/Sales
7.95
Sector
Financial Services
Category
special_situation
Burford: Reassessing after YPF Reversal (at $4.10)
BUR (update): YPF $16B claim vacated, stock -70% to $4.10. Core ROE fell from 20% to 14% despite 2x leverage (vs <1x prior) as YPF write-down shrinks TBV to $3.4/sh while OpEx stays fixed at 3.5% of assets. Asset mgmt platform winding down. YPF claim now 2.5¢ on dollar (~$0.7/sh), deep OTM option. FV $4.4-$5.4/sh vs $4.10 today. 2.2x debt/equity breaches 1.25x covenant, blocks new debt/buybacks, limits growth to organic only. Gradual exit planned.
Read full article (6 min)