ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
NASDAQ:ECPG - Nasdaq - US2925541029 - Common Stock - Currency: USD
Overall ECPG gets a fundamental rating of 4 out of 10. We evaluated ECPG against 53 industry peers in the Consumer Finance industry. Both the profitability and financial health of ECPG have multiple concerns. ECPG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year ECPG was profitable.
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.
ECPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ECPG (-2.91%) is worse than 83.02% of its industry peers.
The Return On Equity of ECPG (-18.15%) is worse than 84.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.01%, ECPG is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECPG is below the industry average of 8.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | -18.15% | ||
| ROIC | 5.01% |
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
ECPG has a Operating Margin of 21.95%. This is in the better half of the industry: ECPG outperforms 71.70% of its industry peers.
ECPG's Operating Margin has declined in the last couple of years.
The Gross Margin of ECPG (77.98%) is better than 73.58% of its industry peers.
ECPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.95% | ||
| PM (TTM) | N/A | ||
| GM | 77.98% |
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
ECPG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ECPG has more shares outstanding
ECPG has less shares outstanding than it did 5 years ago.
ECPG has a worse debt/assets ratio than last year.
2.2 Solvency
ECPG has an Altman-Z score of 0.86. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.86, ECPG perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
The Debt to FCF ratio of ECPG is 28.88, which is on the high side as it means it would take ECPG, 28.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ECPG (28.88) is worse than 64.15% of its industry peers.
ECPG has a Debt/Equity ratio of 4.79. This is a high value indicating a heavy dependency on external financing.
ECPG has a Debt to Equity ratio of 4.79. This is in the lower half of the industry: ECPG underperforms 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.79 | ||
| Debt/FCF | 28.88 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.74
WACC6.81%
2.3 Liquidity
ECPG has a Current Ratio of 1.01. This is a normal value and indicates that ECPG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, ECPG is in line with its industry, outperforming 50.94% of the companies in the same industry.
ECPG has a Quick Ratio of 1.01. This is a normal value and indicates that ECPG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ECPG (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 143.63% over the past year.
The Earnings Per Share has been decreasing by -3.50% on average over the past years.
The Revenue has been growing slightly by 5.08% in the past year.
The Revenue has been decreasing by -1.19% on average over the past years.
EPS 1Y (TTM)143.63%
EPS 3Y-24.44%
EPS 5Y-3.5%
EPS Q2Q%358.62%
Revenue 1Y (TTM)5.08%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%-4.24%
3.2 Future
ECPG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.86% yearly.
Based on estimates for the next years, ECPG will show a quite strong growth in Revenue. The Revenue will grow by 10.19% on average per year.
EPS Next Y21.66%
EPS Next 2Y30.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.26%
Revenue Next 2Y10.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.79, which 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 79.25% of the companies listed in the same industry.
ECPG is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.58, the valuation of ECPG can be described as very cheap.
Based on the Price/Forward Earnings ratio, ECPG is valued cheaply inside the industry as 84.91% of the companies are valued more expensively.
ECPG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 5.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECPG is valued a bit cheaper than the industry average as 67.92% of the companies are valued more expensively.
ECPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.28 | ||
| EV/EBITDA | 13.24 |
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 more expensive valuation may be justified as ECPG's earnings are expected to grow with 30.86% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y30.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ECPG (4/24/2025, 12:02:49 PM)
33.735
+0.73 (+2.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners114.99%
Inst Owner Change0.09%
Ins Owners2.42%
Ins Owner Change7.51%
Market Cap799.18M
Analysts81.82
Price Target60.95 (80.67%)
Short Float %6.4%
Short Ratio5.1
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)0
Avg EPS beat(2)-9.91%
Min EPS beat(2)-16.57%
Max EPS beat(2)-3.25%
EPS beat(4)0
Avg EPS beat(4)-9.41%
Min EPS beat(4)-16.57%
Max EPS beat(4)-1.25%
EPS beat(8)0
Avg EPS beat(8)-35.05%
EPS beat(12)2
Avg EPS beat(12)-33.35%
EPS beat(16)6
Avg EPS beat(16)-14.96%
Revenue beat(2)0
Avg Revenue beat(2)-15.33%
Min Revenue beat(2)-30.44%
Max Revenue beat(2)-0.23%
Revenue beat(4)0
Avg Revenue beat(4)-8.39%
Min Revenue beat(4)-30.44%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-10.33%
Revenue beat(12)0
Avg Revenue beat(12)-8.38%
Revenue beat(16)0
Avg Revenue beat(16)-7.92%
PT rev (1m)0%
PT rev (3m)-4.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.68%
EPS NY rev (1m)-20.5%
EPS NY rev (3m)-20.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 5.58 | ||
| P/S | 0.61 | ||
| P/FCF | 6.28 | ||
| P/OCF | 5.12 | ||
| P/B | 1.04 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)4.97
EY14.73%
EPS(NY)6.05
Fwd EY17.92%
FCF(TTM)5.37
FCFY15.91%
OCF(TTM)6.59
OCFY19.54%
SpS55.57
BVpS32.39
TBVpS10.96
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | -18.15% | ||
| ROCE | 6.34% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 6.13% | ||
| OM | 21.95% | ||
| PM (TTM) | N/A | ||
| GM | 77.98% | ||
| FCFM | 9.66% |
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%
ROICexcg growth 3Y-19.09%
ROICexcg 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.79 | ||
| Debt/FCF | 28.88 | ||
| Debt/EBITDA | 11.43 | ||
| Cap/Depr | 89.43% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 48.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.86 |
F-Score5
WACC6.81%
ROIC/WACC0.74
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)143.63%
EPS 3Y-24.44%
EPS 5Y-3.5%
EPS Q2Q%358.62%
EPS Next Y21.66%
EPS Next 2Y30.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.08%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%-4.24%
Revenue Next Year10.26%
Revenue Next 2Y10.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.83%
EBIT growth 3Y-13.97%
EBIT growth 5Y-9.56%
EBIT Next Year18.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.8%
FCF growth 3Y-22.17%
FCF growth 5Y-9.12%
OCF growth 1Y2.08%
OCF growth 3Y-19.83%
OCF growth 5Y-8.59%