ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
44.56 USD
-0.18 (-0.4%)
44.56 USD
0 (0%)
Overall ECPG gets a fundamental rating of 4 out of 10. We evaluated ECPG against 54 industry peers in the Consumer Finance industry. There are concerns on the financial health of ECPG while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on ECPG.
1. Profitability
1.1 Basic Checks
In the past year ECPG was profitable.
ECPG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ECPG reported negative net income in multiple years.
In the past 5 years ECPG always reported a positive cash flow from operatings.
1.2 Ratios
ECPG has a worse Return On Assets (-1.70%) than 85.19% of its industry peers.
ECPG's Return On Equity of -9.82% is on the low side compared to the rest of the industry. ECPG is outperformed by 87.04% of its industry peers.
ECPG has a Return On Invested Capital of 5.89%. This is in the better half of the industry: ECPG outperforms 68.52% 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 11.02%.
The 3 year average ROIC (5.57%) for ECPG is below the current ROIC(5.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.7% | ||
| ROE | -9.82% | ||
| ROIC | 5.89% |
ROA(3y)-1.01%
ROA(5y)1.79%
ROE(3y)-7.87%
ROE(5y)4.68%
ROIC(3y)5.57%
ROIC(5y)6.77%
1.3 Margins
ECPG has a Operating Margin of 25.28%. This is amongst the best in the industry. ECPG outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of ECPG has declined.
ECPG has a Gross Margin of 78.54%. This is in the better half of the industry: ECPG outperforms 68.52% of its industry peers.
ECPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.28% | ||
| PM (TTM) | N/A | ||
| GM | 78.54% |
OM growth 3Y-11.91%
OM growth 5Y-8.5%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.31%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECPG is destroying value.
ECPG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ECPG has less shares outstanding
ECPG has a worse debt/assets ratio than last year.
2.2 Solvency
ECPG has an Altman-Z score of 0.93. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
ECPG's Altman-Z score of 0.93 is fine compared to the rest of the industry. ECPG outperforms 62.96% of its industry peers.
The Debt to FCF ratio of ECPG is 41.30, which is on the high side as it means it would take ECPG, 41.30 years of fcf income to pay off all of its debts.
ECPG has a Debt to FCF ratio (41.30) which is in line with its industry peers.
ECPG has a Debt/Equity ratio of 4.43. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.43, ECPG is not doing good in the industry: 64.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 41.3 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.81
WACC7.24%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ECPG may have some problems paying its short term obligations.
ECPG has a Current ratio of 0.97. This is comparable to the rest of the industry: ECPG outperforms 46.30% of its industry peers.
ECPG has a Quick Ratio of 0.97. 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 0.97. This is comparable to the rest of the industry: ECPG outperforms 46.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
ECPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 187.20%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.19% on average over the past years.
Looking at the last year, ECPG shows a quite strong growth in Revenue. The Revenue has grown by 13.96% in the last year.
Measured over the past years, ECPG shows a decrease in Revenue. The Revenue has been decreasing by -1.19% on average per year.
EPS 1Y (TTM)187.2%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%85.82%
Revenue 1Y (TTM)13.96%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%20.45%
3.2 Future
The Earnings Per Share is expected to grow by 28.16% on average over the next years. This is a very strong growth
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 Y60.9%
EPS Next 2Y28.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.63%
Revenue Next 2Y10.63%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.21 indicates a rather cheap valuation of ECPG.
79.63% of the companies in the same industry are more expensive than ECPG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ECPG to the average of the S&P500 Index (27.20), we can say ECPG is valued rather cheaply.
A Price/Forward Earnings ratio of 5.37 indicates a rather cheap valuation of ECPG.
Based on the Price/Forward Earnings ratio, ECPG is valued cheaper than 85.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 5.37 |
4.2 Price Multiples
ECPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 68.52% of the companies in the same industry.
ECPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 11.96 |
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 grow with 28.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y28.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.56
-0.18 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.47%
Inst Owner Change-2.3%
Ins Owners2.99%
Ins Owner Change1.73%
Market Cap1.03B
Analysts81.82
Price Target58.4 (31.06%)
Short Float %6.27%
Short Ratio4.74
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)64.01%
Min EPS beat(2)55.86%
Max EPS beat(2)72.16%
EPS beat(4)2
Avg EPS beat(4)27.05%
Min EPS beat(4)-16.57%
Max EPS beat(4)72.16%
EPS beat(8)3
Avg EPS beat(8)-9.39%
EPS beat(12)3
Avg EPS beat(12)-39.21%
EPS beat(16)7
Avg EPS beat(16)-12.81%
Revenue beat(2)2
Avg Revenue beat(2)7.94%
Min Revenue beat(2)2.83%
Max Revenue beat(2)13.05%
Revenue beat(4)2
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-30.44%
Max Revenue beat(4)13.05%
Revenue beat(8)3
Avg Revenue beat(8)-6.74%
Revenue beat(12)3
Avg Revenue beat(12)-5.76%
Revenue beat(16)3
Avg Revenue beat(16)-6.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)17.45%
EPS NQ rev (3m)17.3%
EPS NY rev (1m)19.22%
EPS NY rev (3m)19.22%
Revenue NQ rev (1m)3.26%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)4.81%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 5.37 | ||
| P/S | 0.7 | ||
| P/FCF | 10.68 | ||
| P/OCF | 8.27 | ||
| P/B | 1.14 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)7.18
EY16.11%
EPS(NY)8.3
Fwd EY18.62%
FCF(TTM)4.17
FCFY9.36%
OCF(TTM)5.39
OCFY12.09%
SpS63.78
BVpS38.94
TBVpS15.34
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.7% | ||
| ROE | -9.82% | ||
| ROCE | 7.46% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 7.05% | ||
| OM | 25.28% | ||
| PM (TTM) | N/A | ||
| GM | 78.54% | ||
| FCFM | 6.54% |
ROA(3y)-1.01%
ROA(5y)1.79%
ROE(3y)-7.87%
ROE(5y)4.68%
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%
ROICexcg growth 3Y-19.13%
ROICexcg growth 5Y-10.9%
ROICexc growth 3Y-15.25%
ROICexc growth 5Y-9.12%
OM growth 3Y-11.91%
OM growth 5Y-8.5%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.31%
GM growth 5Y-0.74%
F-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 41.3 | ||
| Debt/EBITDA | 9.84 | ||
| Cap/Depr | 87.5% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 30.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.93 |
F-Score4
WACC7.24%
ROIC/WACC0.81
Cap/Depr(3y)74.6%
Cap/Depr(5y)74.26%
Cap/Sales(3y)2.37%
Cap/Sales(5y)2.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)187.2%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%85.82%
EPS Next Y60.9%
EPS Next 2Y28.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.96%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%20.45%
Revenue Next Year15.63%
Revenue Next 2Y10.63%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
EBIT growth 1Y12.31%
EBIT growth 3Y-14.02%
EBIT growth 5Y-9.59%
EBIT Next Year26.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.43%
FCF growth 3Y-22.2%
FCF growth 5Y-9.14%
OCF growth 1Y-29.06%
OCF growth 3Y-19.86%
OCF growth 5Y-8.61%