ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
49.5 USD
+1.78 (+3.73%)
Taking everything into account, ECPG scores 3 out of 10 in our fundamental rating. 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 has a valuation in line with the averages, 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.
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's Return On Assets of -0.86% is on the low side compared to the rest of the industry. ECPG is outperformed by 85.45% of its industry peers.
ECPG has a worse Return On Equity (-4.74%) than 89.09% of its industry peers.
The Return On Invested Capital of ECPG (6.93%) is better than 69.09% of its industry peers.
ECPG had an Average Return On Invested Capital over the past 3 years of 5.57%. This is significantly below the industry average of 11.61%.
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
ECPG's Operating Margin of 28.07% is fine compared to the rest of the industry. ECPG outperforms 80.00% of its industry peers.
ECPG's Operating Margin has declined in the last couple of years.
The Gross Margin of ECPG (79.06%) is better than 69.09% 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 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ECPG is destroying value.
The number of shares outstanding for ECPG has been increased compared to 1 year ago.
The number of shares outstanding for ECPG has been reduced compared to 5 years ago.
The debt/assets ratio for ECPG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
ECPG's Altman-Z score of 1.00 is fine compared to the rest of the industry. ECPG outperforms 63.64% of its industry peers.
ECPG has a debt to FCF ratio of 29.98. This is a negative value and a sign of low solvency as ECPG would need 29.98 years to pay back of all of its debts.
With a Debt to FCF ratio value of 29.98, ECPG perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
ECPG has a Debt/Equity ratio of 4.13. This is a high value indicating a heavy dependency on external financing.
ECPG's Debt to Equity ratio of 4.13 is on the low side compared to the rest of the industry. ECPG is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Altman-Z | 1 |
ROIC/WACC0.94
WACC7.38%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ECPG may have some problems paying its short term obligations.
With a Current ratio value of 0.80, ECPG perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that ECPG may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, ECPG perfoms like the industry average, outperforming 43.64% of the companies in the same 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.
ECPG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.19% yearly.
The Revenue has grown by 17.52% in the past year. This is quite good.
The Revenue has been decreasing by -1.19% on average over the past years.
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.
Based on estimates for the next years, ECPG will show a very negative growth in Revenue. The Revenue will decrease by -22.84% on average per year.
EPS Next Y65.87%
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue Next Year15.63%
Revenue Next 2Y10.63%
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.
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
The Price/Earnings ratio is 5.45, which indicates a rather cheap valuation of ECPG.
Based on the Price/Earnings ratio, ECPG is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.07, ECPG is valued rather cheaply.
ECPG is valuated cheaply with a Price/Forward Earnings ratio of 5.88.
Based on the Price/Forward Earnings ratio, ECPG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
ECPG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.45 | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECPG indicates a somewhat cheap valuation: ECPG is cheaper than 69.09% of the companies listed in the same industry.
ECPG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 10.35 |
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)0.08
PEG (5Y)N/A
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ECPG (11/21/2025, 1:00:26 PM)
49.5
+1.78 (+3.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.35%
Inst Owner Change-5.42%
Ins Owners3.03%
Ins Owner Change2.04%
Market Cap1.14B
Revenue(TTM)1.56B
Net Income(TTM)-45.13M
Analysts81.82
Price Target58.4 (17.98%)
Short Float %5.22%
Short Ratio4.07
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)0%
PT rev (3m)0%
EPS NQ rev (1m)5.23%
EPS NQ rev (3m)15.26%
EPS NY rev (1m)0%
EPS NY rev (3m)22.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.45 | ||
| Fwd PE | 5.88 | ||
| P/S | 0.73 | ||
| P/FCF | 8.68 | ||
| P/OCF | 7.14 | ||
| P/B | 1.2 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)9.09
EY18.36%
EPS(NY)8.42
Fwd EY17.01%
FCF(TTM)5.7
FCFY11.52%
OCF(TTM)6.93
OCFY14.01%
SpS67.83
BVpS41.41
TBVpS18.14
PEG (NY)0.08
PEG (5Y)N/A
Graham Number92.03
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 |
F-Score5
WACC7.38%
ROIC/WACC0.94
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 Y65.87%
EPS Next 2Y29.13%
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 Year15.63%
Revenue Next 2Y10.63%
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 Year40.24%
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 7 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Undervalued.
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.