Burford Capital Total Debt vs. Current Valuation
| BUR Stock | 1,041 19.00 1.79% |
For Burford Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Burford Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Burford Capital Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Burford Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Burford Capital Limited over time as well as its relative position and ranking within its peers.
Burford |
Burford Capital Current Valuation vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Burford Capital's current stock value. Our valuation model uses many indicators to compare Burford Capital value to that of its competitors to determine the firm's financial worth. Burford Capital Limited is the top company in total debt category among its peers. It also is the top company in current valuation category among its peers reporting about 2.77 of Current Valuation per Total Debt. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Burford Capital's earnings, one of the primary drivers of an investment's value.Burford Total Debt vs. Competition
Burford Capital Limited is the top company in total debt category among its peers. Total debt of Financials industry is currently estimated at about 8.15 Billion. Burford Capital retains roughly 1.55 Billion in total debt claiming about 19% of equities under Financials industry.
Burford Current Valuation vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Burford Capital |
| = | 1.55 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Burford Capital |
| = | 4.29 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Burford Current Valuation vs Competition
Burford Capital Limited is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 73.79 Billion. Burford Capital holds roughly 4.29 Billion in current valuation claiming about 6% of equities under Financials industry.
Burford Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Burford Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Burford Capital will eventually generate negative long term returns. The profitability progress is the general direction of Burford Capital's change in net profit over the period of time. It can combine multiple indicators of Burford Capital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 7.3 M | 6.9 M | |
| Operating Income | 815.7 M | 856.4 M | |
| Income Before Tax | 738.3 M | 775.2 M | |
| Net Income Applicable To Common Shares | 35.1 M | 33.3 M | |
| Net Income | 718.2 M | 754.1 M | |
| Total Other Income Expense Net | -77.4 M | -73.5 M | |
| Income Tax Expense | 20.1 M | 21.1 M | |
| Net Income From Continuing Ops | 718.2 M | 754.1 M | |
| Net Interest Income | -94.6 M | -89.9 M | |
| Change To Netincome | -190.2 M | -199.8 M |
Burford Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Burford Capital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Burford Capital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Burford Capital's important profitability drivers and their relationship over time.
Use Burford Capital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Burford Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Burford Capital will appreciate offsetting losses from the drop in the long position's value.Burford Capital Pair Trading
Burford Capital Limited Pair Trading Analysis
The ability to find closely correlated positions to Burford Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Burford Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Burford Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Burford Capital Limited to buy it.
The correlation of Burford Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Burford Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Burford Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Burford Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Burford Capital position
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 Consumer Staples ETFs Thematic Idea Now
Consumer Staples ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Staples ETFs theme has 13 constituents at this time.
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 Consumer Staples ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Burford Stock
To fully project Burford Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Burford Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Burford Capital's income statement, its balance sheet, and the statement of cash flows.