Added to YB: 2025-02-10
Pitch date: 2025-02-09
BUR [bullish]
Burford Capital Limited
-67.07%
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
$14.27
Price Target
31.50 (+570%)
Dividend
3.10%
EV/EBITDA
14.89
P/E
14.39
EV/Sales
7.95
Sector
Financial Services
Category
value
A not-so-late Bull Case for Burford Capital
BUR: Litigation finance leader, TBV grew 3x ($3.2→$10.47/share) since 2017 at 19% CAGR, yet stock flat. 20% ROE, 14% normalized earning power on assets (after 2% OpEx, 15% incentive fee). Trades 7x PTBV/ROE vs major banks 14-16x; fair value ~$31.5/share (115% upside). $16Bn YPF judgment ($6.8Bn Burford's 39% stake=$30/share alone) valued at only $1.5Bn on balance sheet. Argentina delaying tactics overstated; Trump DoJ likely shifts stance vs Biden. Estimate 50% YPF recovery=$15/share vs current $7 fair value. 82% ROIC, 27% IRR since inception.
Read full article (10 min)