ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
48.83 USD
+0.31 (+0.64%)
48.83 USD
0 (0%)
Taking everything into account, ECPG scores 3 out of 10 in our fundamental rating. ECPG was compared to 55 industry peers in the Consumer Finance industry. There are concerns on the financial health of ECPG while its profitability can be described as average. 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.
In the past year ECPG had a positive cash flow from operations.
In multiple years ECPG reported negative net income over the last 5 years.
Each year in the past 5 years ECPG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ECPG (-0.86%) is worse than 83.64% of its industry peers.
ECPG has a worse Return On Equity (-4.74%) than 87.27% of its industry peers.
ECPG has a Return On Invested Capital of 6.93%. This is in the better half of the industry: ECPG outperforms 70.91% of its industry peers.
ECPG had an Average Return On Invested Capital over the past 3 years of 5.57%. This 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
Looking at the Operating Margin, with a value of 28.07%, ECPG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ECPG's Operating Margin has declined in the last couple of years.
ECPG's Gross Margin of 79.06% is fine compared to the rest of the industry. ECPG outperforms 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.
Compared to 1 year ago, ECPG has more shares outstanding
Compared to 5 years ago, ECPG has less shares outstanding
Compared to 1 year ago, ECPG has a worse debt to assets ratio.
2.2 Solvency
ECPG has an Altman-Z score of 1.00. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.00, ECPG is doing good in the industry, outperforming 65.45% of the companies in the same industry.
The Debt to FCF ratio of ECPG is 29.98, which is on the high side as it means it would take ECPG, 29.98 years of fcf income to pay off all of its debts.
ECPG has a Debt to FCF ratio of 29.98. This is comparable to the rest of the industry: ECPG outperforms 45.45% of 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's Debt to Equity ratio of 4.13 is on the low side compared to the rest of the industry. ECPG is outperformed by 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Altman-Z | 1 |
ROIC/WACC0.93
WACC7.41%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ECPG may have some problems paying its short term obligations.
The Current ratio of ECPG (0.80) is comparable to the rest of the industry.
A Quick Ratio of 0.80 indicates that ECPG may have some problems paying its short term obligations.
ECPG's Quick ratio of 0.80 is in line compared to the rest of the industry. ECPG outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 206.06% over the past year.
Measured over the past years, ECPG shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.19% on average per year.
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
ECPG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -19.01% yearly.
Based on estimates for the next years, ECPG will show a very negative growth in Revenue. The Revenue will decrease by -22.84% on average per year.
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
A Price/Earnings ratio of 5.37 indicates a rather cheap valuation of ECPG.
Compared to the rest of the industry, the Price/Earnings ratio of ECPG indicates a somewhat cheap valuation: ECPG is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. ECPG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.80, which indicates a rather cheap valuation of ECPG.
Based on the Price/Forward Earnings ratio, ECPG is valued cheaper than 85.45% of the companies in the same industry.
ECPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.37 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
70.91% of the companies in the same industry are more expensive than ECPG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECPG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 10.39 |
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.
A cheap valuation may be justified as ECPG's earnings are expected to decrease with -19.01% in the coming years.
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 |
48.83
+0.31 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.35%
Inst Owner Change-0.04%
Ins Owners3.03%
Ins Owner Change1.73%
Market Cap1.12B
Revenue(TTM)1.56B
Net Income(TTM)-45.13M
Analysts81.82
Price Target58.4 (19.6%)
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)0%
EPS NQ rev (3m)17.3%
EPS NY rev (1m)0%
EPS NY rev (3m)22.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.37 | ||
| Fwd PE | 5.8 | ||
| P/S | 0.72 | ||
| P/FCF | 8.56 | ||
| P/OCF | 7.04 | ||
| P/B | 1.18 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)9.09
EY18.62%
EPS(NY)8.42
Fwd EY17.25%
FCF(TTM)5.7
FCFY11.68%
OCF(TTM)6.93
OCFY14.2%
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 |
F-Score5
WACC7.41%
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.