ENCORE CAPITAL GROUP INC (ECPG) Fundamental Analysis & Valuation

NASDAQ:ECPG • US2925541029

Current stock price

71.69 USD
+1.57 (+2.24%)
Last:

This ECPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ECPG Profitability Analysis

1.1 Basic Checks

  • ECPG had positive earnings in the past year.
  • In the past year ECPG had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: ECPG reported negative net income in multiple years.
  • Each year in the past 5 years ECPG had a positive operating cash flow.
ECPG Yearly Net Income VS EBIT VS OCF VS FCFECPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • ECPG has a better Return On Assets (4.81%) than 64.81% of its industry peers.
  • ECPG's Return On Equity of 26.29% is fine compared to the rest of the industry. ECPG outperforms 77.78% of its industry peers.
  • ECPG has a better Return On Invested Capital (9.37%) than 74.07% of its industry peers.
  • ECPG had an Average Return On Invested Capital over the past 3 years of 6.33%. This is significantly below the industry average of 12.01%.
  • The last Return On Invested Capital (9.37%) for ECPG is above the 3 year average (6.33%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.81%
ROE 26.29%
ROIC 9.37%
ROA(3y)-0.85%
ROA(5y)1.87%
ROE(3y)-4.63%
ROE(5y)6.44%
ROIC(3y)6.33%
ROIC(5y)6.68%
ECPG Yearly ROA, ROE, ROICECPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

1.3 Margins

  • With a decent Profit Margin value of 14.52%, ECPG is doing good in the industry, outperforming 62.96% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ECPG has remained more or less at the same level.
  • ECPG has a Operating Margin of 35.43%. This is amongst the best in the industry. ECPG outperforms 88.89% of its industry peers.
  • In the last couple of years the Operating Margin of ECPG has remained more or less at the same level.
  • ECPG has a better Gross Margin (80.51%) than 74.07% of its industry peers.
  • In the last couple of years the Gross Margin of ECPG has remained more or less at the same level.
Industry RankSector Rank
OM 35.43%
PM (TTM) 14.52%
GM 80.51%
OM growth 3Y7.8%
OM growth 5Y0.12%
PM growth 3Y-0.88%
PM growth 5Y0.48%
GM growth 3Y-0.03%
GM growth 5Y-0.04%
ECPG Yearly Profit, Operating, Gross MarginsECPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. ECPG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ECPG is creating some value.
  • Compared to 1 year ago, ECPG has less shares outstanding
  • ECPG has less shares outstanding than it did 5 years ago.
  • ECPG has a better debt/assets ratio than last year.
ECPG Yearly Shares OutstandingECPG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
ECPG Yearly Total Debt VS Total AssetsECPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.21, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
  • ECPG has a Altman-Z score of 1.21. This is in the better half of the industry: ECPG outperforms 72.22% of its industry peers.
  • The Debt to FCF ratio of ECPG is 31.52, which is on the high side as it means it would take ECPG, 31.52 years of fcf income to pay off all of its debts.
  • ECPG has a Debt to FCF ratio of 31.52. This is comparable to the rest of the industry: ECPG outperforms 48.15% of its industry peers.
  • ECPG has a Debt/Equity ratio of 4.10. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 4.10, ECPG is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 4.1
Debt/FCF 31.52
Altman-Z 1.21
ROIC/WACC1.23
WACC7.62%
ECPG Yearly LT Debt VS Equity VS FCFECPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.99 indicates that ECPG may have some problems paying its short term obligations.
  • ECPG's Current ratio of 0.99 is in line compared to the rest of the industry. ECPG outperforms 42.59% of its industry peers.
  • ECPG has a Quick Ratio of 0.99. 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's Quick ratio of 0.99 is in line compared to the rest of the industry. ECPG outperforms 42.59% of its industry peers.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
ECPG Yearly Current Assets VS Current LiabilitesECPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ECPG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 117.03% over the past year.
  • ECPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.15% yearly.
  • ECPG shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.37%.
  • ECPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.43% yearly.
EPS 1Y (TTM)117.03%
EPS 3Y17.25%
EPS 5Y7.15%
EPS Q2Q%124.67%
Revenue 1Y (TTM)34.37%
Revenue growth 3Y10.66%
Revenue growth 5Y3.43%
Sales Q2Q%78.28%

3.2 Future

  • ECPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.19% yearly.
  • Based on estimates for the next years, ECPG will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y3.98%
EPS Next 2Y6.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.54%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ECPG Yearly Revenue VS EstimatesECPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
ECPG Yearly EPS VS EstimatesECPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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Find the best growth stocksShow best growing peers

6

4. ECPG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 6.54 indicates a rather cheap valuation of ECPG.
  • 66.67% 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 (25.58), we can say ECPG is valued rather cheaply.
  • A Price/Forward Earnings ratio of 6.29 indicates a rather cheap valuation of ECPG.
  • ECPG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 77.78% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.81. ECPG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.54
Fwd PE 6.29
ECPG Price Earnings VS Forward Price EarningsECPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 77.78% of the companies in the same industry are more expensive than ECPG, based on the Enterprise Value to EBITDA ratio.
  • ECPG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.09
EV/EBITDA 8.16
ECPG Per share dataECPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of ECPG may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)0.91
EPS Next 2Y6.19%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ECPG Dividend Analysis

5.1 Amount

  • ECPG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ECPG Fundamentals: All Metrics, Ratios and Statistics

ENCORE CAPITAL GROUP INC

NASDAQ:ECPG (4/1/2026, 1:20:20 PM)

71.69

+1.57 (+2.24%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners107.21%
Inst Owner Change-4.85%
Ins Owners3.19%
Ins Owner Change2.56%
Market Cap1.53B
Revenue(TTM)1.77B
Net Income(TTM)256.83M
Analysts80
Price Target84.32 (17.62%)
Short Float %5.11%
Short Ratio4.2
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)63.03%
Min EPS beat(2)57.52%
Max EPS beat(2)68.54%
EPS beat(4)4
Avg EPS beat(4)63.52%
Min EPS beat(4)55.86%
Max EPS beat(4)72.16%
EPS beat(8)5
Avg EPS beat(8)29.83%
EPS beat(12)5
Avg EPS beat(12)11.81%
EPS beat(16)7
Avg EPS beat(16)1.37%
Revenue beat(2)2
Avg Revenue beat(2)9.93%
Min Revenue beat(2)9.89%
Max Revenue beat(2)9.97%
Revenue beat(4)4
Avg Revenue beat(4)8.93%
Min Revenue beat(4)2.83%
Max Revenue beat(4)13.05%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)5
Avg Revenue beat(12)-3.56%
Revenue beat(16)5
Avg Revenue beat(16)-3.79%
PT rev (1m)21.57%
PT rev (3m)37.21%
EPS NQ rev (1m)36.02%
EPS NQ rev (3m)32.65%
EPS NY rev (1m)24.24%
EPS NY rev (3m)20.42%
Revenue NQ rev (1m)3.35%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)3.12%
Revenue NY rev (3m)2.84%
Valuation
Industry RankSector Rank
PE 6.54
Fwd PE 6.29
P/S 0.87
P/FCF 12.09
P/OCF 10.02
P/B 1.57
P/tB 3.48
EV/EBITDA 8.16
EPS(TTM)10.96
EY15.29%
EPS(NY)11.4
Fwd EY15.9%
FCF(TTM)5.93
FCFY8.27%
OCF(TTM)7.16
OCFY9.98%
SpS82.62
BVpS45.62
TBVpS20.57
PEG (NY)1.64
PEG (5Y)0.91
Graham Number106.07
Profitability
Industry RankSector Rank
ROA 4.81%
ROE 26.29%
ROCE 12.26%
ROIC 9.37%
ROICexc 9.67%
ROICexgc 10.99%
OM 35.43%
PM (TTM) 14.52%
GM 80.51%
FCFM 7.18%
ROA(3y)-0.85%
ROA(5y)1.87%
ROE(3y)-4.63%
ROE(5y)6.44%
ROIC(3y)6.33%
ROIC(5y)6.68%
ROICexc(3y)6.57%
ROICexc(5y)6.94%
ROICexgc(3y)7.68%
ROICexgc(5y)8.63%
ROCE(3y)8.29%
ROCE(5y)8.74%
ROICexgc growth 3Y6.53%
ROICexgc growth 5Y-1.59%
ROICexc growth 3Y12.35%
ROICexc growth 5Y1.25%
OM growth 3Y7.8%
OM growth 5Y0.12%
PM growth 3Y-0.88%
PM growth 5Y0.48%
GM growth 3Y-0.03%
GM growth 5Y-0.04%
F-Score8
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 4.1
Debt/FCF 31.52
Debt/EBITDA 6.11
Cap/Depr 91.34%
Cap/Sales 1.49%
Interest Coverage 2.41
Cash Conversion 23.37%
Profit Quality 49.42%
Current Ratio 0.99
Quick Ratio 0.99
Altman-Z 1.21
F-Score8
WACC7.62%
ROIC/WACC1.23
Cap/Depr(3y)80.07%
Cap/Depr(5y)76.11%
Cap/Sales(3y)1.91%
Cap/Sales(5y)2.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)117.03%
EPS 3Y17.25%
EPS 5Y7.15%
EPS Q2Q%124.67%
EPS Next Y3.98%
EPS Next 2Y6.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.37%
Revenue growth 3Y10.66%
Revenue growth 5Y3.43%
Sales Q2Q%78.28%
Revenue Next Year5.54%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y116.87%
EBIT growth 3Y19.3%
EBIT growth 5Y3.55%
EBIT Next Year13.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.18%
FCF growth 3Y-9.89%
FCF growth 5Y-14.53%
OCF growth 1Y-1.9%
OCF growth 3Y-10.08%
OCF growth 5Y-13.31%

ENCORE CAPITAL GROUP INC / ECPG Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ENCORE CAPITAL GROUP INC?

ChartMill assigns a fundamental rating of 5 / 10 to ECPG.


Can you provide the valuation status for ENCORE CAPITAL GROUP INC?

ChartMill assigns a valuation rating of 6 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Fairly Valued.


What is the profitability of ECPG stock?

ENCORE CAPITAL GROUP INC (ECPG) has a profitability rating of 6 / 10.


What is the earnings growth outlook for ENCORE CAPITAL GROUP INC?

The Earnings per Share (EPS) of ENCORE CAPITAL GROUP INC (ECPG) is expected to grow by 3.98% in the next year.