52.88 USD
-0.18 (-0.34%)
52.88 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ECPG. ECPG was compared to 55 industry peers in the Consumer Finance industry. While ECPG is still in line with the averages on profitability rating, there are concerns on its financial health. ECPG is cheap, but on the other hand it scores bad on growth.
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.
In the past 5 years ECPG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.86%, ECPG is not doing good in the industry: 85.45% of the companies in the same industry are doing better.
ECPG's Return On Equity of -4.74% is on the low side compared to the rest of the industry. ECPG is outperformed by 85.45% of its industry peers.
The Return On Invested Capital of ECPG (6.93%) is better than 69.09% 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 11.33%.
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.
Looking at the Gross Margin, with a value of 79.06%, ECPG is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
In the last couple of years the Gross Margin of ECPG has remained more or less at the same level.
| 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
ECPG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ECPG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
ECPG has a Altman-Z score of 1.01. This is in the better half of the industry: ECPG outperforms 65.45% of its industry peers.
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's Debt to FCF ratio of 29.98 is in line compared to the rest of the industry. ECPG outperforms 47.27% 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 has a Debt to Equity ratio of 4.13. This is in the lower half of the industry: ECPG underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.92
WACC7.53%
2.3 Liquidity
ECPG has a Current Ratio of 0.80. 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 Current ratio (0.80) which is comparable to the rest of the industry.
ECPG has a Quick Ratio of 0.80. This is a bad value and indicates that ECPG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ECPG (0.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ECPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 206.06%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.19% on average over the past years.
The Revenue has grown by 17.52% in the past year. This is quite good.
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)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.
The Revenue is expected to decrease by -22.84% on average over the next years. This is quite bad
EPS Next Y97.05%
EPS Next 2Y36.89%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue Next Year19.56%
Revenue Next 2Y11.28%
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
The Price/Earnings ratio is 5.82, which indicates a rather cheap valuation of ECPG.
ECPG's Price/Earnings ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 76.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. ECPG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.59, which indicates a rather cheap valuation of ECPG.
Based on the Price/Forward Earnings ratio, ECPG is valued cheaper than 87.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ECPG to the average of the S&P500 Index (36.10), we can say ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 5.59 |
4.2 Price Multiples
ECPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 70.91% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ECPG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 10.52 |
4.3 Compensation for Growth
ECPG's 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 decrease with -19.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y36.89%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
ECPG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.88
-0.18 (-0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners108.29%
Inst Owner Change-5.32%
Ins Owners3.08%
Ins Owner Change1.09%
Market Cap1.18B
Revenue(TTM)1.56B
Net Income(TTM)-45.13M
Analysts81.82
Price Target61.46 (16.23%)
Short Float %5.76%
Short Ratio4.57
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)5.24%
PT rev (3m)5.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.51%
EPS NY rev (1m)18.8%
EPS NY rev (3m)22.47%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)3.39%
Revenue NY rev (3m)5.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 5.59 | ||
| P/S | 0.76 | ||
| P/FCF | 8.99 | ||
| P/OCF | 7.39 | ||
| P/B | 1.24 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)9.09
EY17.19%
EPS(NY)9.46
Fwd EY17.9%
FCF(TTM)5.88
FCFY11.13%
OCF(TTM)7.15
OCFY13.53%
SpS69.99
BVpS42.73
TBVpS18.71
PEG (NY)0.06
PEG (5Y)N/A
Graham Number93.49
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 | 1.01 |
F-Score5
WACC7.53%
ROIC/WACC0.92
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 Y97.05%
EPS Next 2Y36.89%
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 Year19.56%
Revenue Next 2Y11.28%
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 Year54.72%
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 6 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Fairly Valued.
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.