ENCORE CAPITAL GROUP INC (ECPG) Fundamental Analysis & Valuation

NASDAQ:ECPG • US2925541029

Current stock price

84.74 USD
+0.44 (+0.52%)
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.
  • 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.
  • ECPG had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of ECPG (4.81%) is better than 68.52% of its industry peers.
  • ECPG has a better Return On Equity (26.29%) than 77.78% of its industry peers.
  • ECPG has a Return On Invested Capital of 9.37%. This is in the better half of the industry: ECPG outperforms 74.07% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ECPG is below the industry average of 9.54%.
  • 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.
  • ECPG's Profit Margin has been stable in the last couple of years.
  • ECPG has a Operating Margin of 35.43%. This is amongst the best in the industry. ECPG outperforms 90.74% 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 75.93% of its industry peers.
  • ECPG's Gross Margin has been stable in the last couple of years.
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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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 1.26, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of ECPG (1.26) is better than 68.52% 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.
  • With a Debt to FCF ratio value of 31.52, ECPG perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
  • ECPG has a Debt/Equity ratio of 4.10. This is a high value indicating a heavy dependency on external financing.
  • ECPG has a Debt to Equity ratio of 4.10. This is in the lower half of the industry: ECPG underperforms 62.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.1
Debt/FCF 31.52
Altman-Z 1.26
ROIC/WACC1.19
WACC7.89%
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 44.44% 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 has a Quick ratio of 0.99. This is comparable to the rest of the industry: ECPG outperforms 44.44% 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

6

3. ECPG Growth Analysis

3.1 Past

  • ECPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.03%, which is quite impressive.
  • The Earnings Per Share has been growing slightly by 7.15% on average over the past years.
  • Looking at the last year, ECPG shows a very strong growth in Revenue. 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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
  • ECPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y11.47%
EPS Next 2Y10.08%
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

  • 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.
  • 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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7

4. ECPG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 7.73 indicates a rather cheap valuation of ECPG.
  • Based on the Price/Earnings ratio, ECPG is valued a bit cheaper than 66.67% of the companies in the same industry.
  • ECPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
  • With a Price/Forward Earnings ratio of 6.94, the valuation of ECPG can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, ECPG is valued a bit cheaper than the industry average as 79.63% of the companies are valued more expensively.
  • ECPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 7.73
Fwd PE 6.94
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

  • ECPG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ECPG is cheaper than 83.33% of the companies in the same industry.
  • ECPG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 14.29
EV/EBITDA 8.62
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of ECPG may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)1.08
EPS Next 2Y10.08%
EPS Next 3YN/A

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

0

5. ECPG Dividend Analysis

5.1 Amount

  • No dividends for ECPG!.
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 (4/28/2026, 1:09:01 PM)

84.74

+0.44 (+0.52%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)02-25
Earnings (Next)05-06
Inst Owners106.52%
Inst Owner Change-0.14%
Ins Owners3.29%
Ins Owner Change2.56%
Market Cap1.81B
Revenue(TTM)1.77B
Net Income(TTM)256.83M
Analysts80
Price Target84.32 (-0.5%)
Short Float %5.55%
Short Ratio3.49
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)0%
EPS NQ rev (3m)32.65%
EPS NY rev (1m)7.21%
EPS NY rev (3m)29.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.84%
Valuation
Industry RankSector Rank
PE 7.73
Fwd PE 6.94
P/S 1.03
P/FCF 14.29
P/OCF 11.84
P/B 1.86
P/tB 4.12
EV/EBITDA 8.62
EPS(TTM)10.96
EY12.93%
EPS(NY)12.22
Fwd EY14.42%
FCF(TTM)5.93
FCFY7%
OCF(TTM)7.16
OCFY8.44%
SpS82.62
BVpS45.62
TBVpS20.57
PEG (NY)0.67
PEG (5Y)1.08
Graham Number106.067 (25.17%)
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 1.26
F-Score8
WACC7.89%
ROIC/WACC1.19
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 Y11.47%
EPS Next 2Y10.08%
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 Year16.13%
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 7 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Undervalued.


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 11.47% in the next year.