ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
49.59 USD
+0.76 (+1.56%)
49.59 USD
0 (0%)
Overall ECPG gets a fundamental rating of 3 out of 10. We evaluated ECPG against 55 industry peers in the Consumer Finance industry. ECPG has a medium profitability rating, but doesn't score so well on its financial health evaluation. ECPG is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ECPG had positive earnings in the past year.
ECPG had a positive operating cash flow in the past year.
In multiple years ECPG reported negative net income over the last 5 years.
In the past 5 years ECPG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.86%, ECPG is doing worse than 85.45% of the companies in the same industry.
With a Return On Equity value of -4.74%, ECPG is not doing good in the industry: 89.09% of the companies in the same industry are doing better.
ECPG has a better Return On Invested Capital (6.93%) than 69.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ECPG is significantly below the industry average of 11.61%.
The last Return On Invested Capital (6.93%) for ECPG is above the 3 year average (5.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.86% | ||
| ROE | -4.74% | ||
| ROIC | 6.93% |
ROA(3y)-1.02%
ROA(5y)1.78%
ROE(3y)-7.9%
ROE(5y)4.66%
ROIC(3y)5.57%
ROIC(5y)6.77%
1.3 Margins
The Operating Margin of ECPG (28.07%) is better than 80.00% of its industry peers.
ECPG's Operating Margin has declined in the last couple of years.
The Gross Margin of ECPG (79.06%) is better than 69.09% of its industry peers.
ECPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.07% | ||
| PM (TTM) | N/A | ||
| GM | 79.06% |
OM growth 3Y-11.86%
OM growth 5Y-8.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.31%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECPG is destroying value.
The number of shares outstanding for ECPG has been increased compared to 1 year ago.
ECPG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ECPG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
ECPG has a better Altman-Z score (1.01) than 63.64% of its industry peers.
ECPG has a debt to FCF ratio of 29.98. This is a negative value and a sign of low solvency as ECPG would need 29.98 years to pay back of all of its debts.
ECPG has a Debt to FCF ratio (29.98) which is in line with its industry peers.
ECPG has a Debt/Equity ratio of 4.13. This is a high value indicating a heavy dependency on external financing.
ECPG has a worse Debt to Equity ratio (4.13) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.93
WACC7.46%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ECPG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.80, ECPG is in line with its industry, outperforming 43.64% of the companies in the same industry.
ECPG has a Quick Ratio of 0.80. This is a bad value and indicates that ECPG is not financially healthy enough and could expect problems in meeting its short term obligations.
ECPG has a Quick ratio of 0.80. This is comparable to the rest of the industry: ECPG outperforms 43.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ECPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 206.06%, which is quite impressive.
ECPG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.19% yearly.
Looking at the last year, ECPG shows a quite strong growth in Revenue. The Revenue has grown by 17.52% in the last year.
ECPG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.19% yearly.
EPS 1Y (TTM)206.06%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%151.59%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%25.41%
3.2 Future
The Earnings Per Share is expected to decrease by -19.01% on average over the next years. This is quite bad
ECPG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -22.84% yearly.
EPS Next Y65.87%
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue Next Year15.63%
Revenue Next 2Y10.63%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.46, the valuation of ECPG can be described as very cheap.
Based on the Price/Earnings ratio, ECPG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
ECPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
ECPG is valuated cheaply with a Price/Forward Earnings ratio of 5.89.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECPG indicates a rather cheap valuation: ECPG is cheaper than 81.82% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ECPG to the average of the S&P500 Index (34.59), we can say ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECPG is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
ECPG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ECPG's earnings are expected to decrease with -19.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.59
+0.76 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.35%
Inst Owner Change-5.42%
Ins Owners3.03%
Ins Owner Change2.04%
Market Cap1.14B
Revenue(TTM)1.56B
Net Income(TTM)-45.13M
Analysts81.82
Price Target58.4 (17.77%)
Short Float %5.39%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.35%
Min EPS beat(2)68.54%
Max EPS beat(2)72.16%
EPS beat(4)3
Avg EPS beat(4)48.33%
Min EPS beat(4)-3.25%
Max EPS beat(4)72.16%
EPS beat(8)4
Avg EPS beat(8)4.36%
EPS beat(12)4
Avg EPS beat(12)-30.77%
EPS beat(16)7
Avg EPS beat(16)-10.37%
Revenue beat(2)2
Avg Revenue beat(2)11.47%
Min Revenue beat(2)9.89%
Max Revenue beat(2)13.05%
Revenue beat(4)3
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-30.44%
Max Revenue beat(4)13.05%
Revenue beat(8)4
Avg Revenue beat(8)-2.67%
Revenue beat(12)4
Avg Revenue beat(12)-4.54%
Revenue beat(16)4
Avg Revenue beat(16)-4.99%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)5.23%
EPS NQ rev (3m)15.26%
EPS NY rev (1m)0%
EPS NY rev (3m)22.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.89 | ||
| P/S | 0.73 | ||
| P/FCF | 8.7 | ||
| P/OCF | 7.15 | ||
| P/B | 1.2 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)9.09
EY18.33%
EPS(NY)8.42
Fwd EY16.98%
FCF(TTM)5.7
FCFY11.5%
OCF(TTM)6.93
OCFY13.98%
SpS67.83
BVpS41.41
TBVpS18.14
PEG (NY)0.08
PEG (5Y)N/A
Graham Number92.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.86% | ||
| ROE | -4.74% | ||
| ROCE | 8.77% | ||
| ROIC | 6.93% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 8.26% | ||
| OM | 28.07% | ||
| PM (TTM) | N/A | ||
| GM | 79.06% | ||
| FCFM | 8.41% |
ROA(3y)-1.02%
ROA(5y)1.78%
ROE(3y)-7.9%
ROE(5y)4.66%
ROIC(3y)5.57%
ROIC(5y)6.77%
ROICexc(3y)5.79%
ROICexc(5y)7.05%
ROICexgc(3y)7.27%
ROICexgc(5y)9.12%
ROCE(3y)7.06%
ROCE(5y)8.57%
ROICexgc growth 3Y-19.09%
ROICexgc growth 5Y-10.87%
ROICexc growth 3Y-15.2%
ROICexc growth 5Y-9.09%
OM growth 3Y-11.86%
OM growth 5Y-8.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.31%
GM growth 5Y-0.74%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Debt/EBITDA | 8.38 | ||
| Cap/Depr | 90.68% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 1.79 | ||
| Cash Conversion | 33.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.01 |
F-Score5
WACC7.46%
ROIC/WACC0.93
Cap/Depr(3y)74.18%
Cap/Depr(5y)74.01%
Cap/Sales(3y)2.36%
Cap/Sales(5y)2.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)206.06%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%151.59%
EPS Next Y65.87%
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue 1Y (TTM)17.52%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%25.41%
Revenue Next Year15.63%
Revenue Next 2Y10.63%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
EBIT growth 1Y27.49%
EBIT growth 3Y-13.97%
EBIT growth 5Y-9.56%
EBIT Next Year40.24%
EBIT Next 3Y-6.14%
EBIT Next 5YN/A
FCF growth 1Y-5.67%
FCF growth 3Y-22.17%
FCF growth 5Y-9.12%
OCF growth 1Y-7.23%
OCF growth 3Y-19.83%
OCF growth 5Y-8.59%
ENCORE CAPITAL GROUP INC / ECPG FAQ
Can you provide the ChartMill fundamental rating for ENCORE CAPITAL GROUP INC?
ChartMill assigns a fundamental rating of 3 / 10 to ECPG.
What is the valuation status of ENCORE CAPITAL GROUP INC (ECPG) stock?
ChartMill assigns a valuation rating of 7 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Undervalued.
Can you provide the profitability details for ENCORE CAPITAL GROUP INC?
ENCORE CAPITAL GROUP INC (ECPG) has a profitability rating of 4 / 10.
How financially healthy is ENCORE CAPITAL GROUP INC?
The financial health rating of ENCORE CAPITAL GROUP INC (ECPG) is 2 / 10.