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. ECPG has a medium profitability rating, but doesn't score so well on its financial health evaluation. ECPG has a bad growth rate and is valued cheaply.
1. Profitability
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.
In the past 5 years ECPG always reported a positive cash flow from operatings.
1.2 Ratios
ECPG has a worse Return On Assets (-0.86%) than 85.45% of its industry peers.
The Return On Equity of ECPG (-4.74%) is worse than 85.45% of its industry peers.
The Return On Invested Capital of ECPG (6.93%) is better than 69.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ECPG is significantly below the industry average of 12.59%.
The 3 year average ROIC (5.57%) for ECPG is below the current ROIC(6.93%), indicating increased profibility in the last year.
| 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
The Operating Margin of ECPG (28.07%) is better than 80.00% of its industry peers.
ECPG's Operating Margin has declined in the last couple of years.
ECPG has a better Gross Margin (79.06%) 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
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
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
ECPG has an Altman-Z score of 1.01. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.01, ECPG is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
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.
A Debt/Equity ratio of 4.13 is on the high side and indicates that ECPG has dependencies on debt financing.
With a Debt to Equity ratio value of 4.13, ECPG is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| 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.
Looking at the Current ratio, with a value of 0.80, ECPG is in line with its industry, 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
The Earnings Per Share has grown by an impressive 206.06% over the past year.
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.
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
Based on estimates for the next years, ECPG will show a very negative growth in Earnings Per Share. The EPS will decrease by -19.01% on average per year.
ECPG is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -22.84% yearly.
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.
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
Based on the Price/Earnings ratio of 5.82, the valuation of ECPG can be described as very cheap.
Based on the Price/Earnings ratio, ECPG is valued a bit cheaper than 76.36% 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 26.49.
Based on the Price/Forward Earnings ratio of 5.59, the valuation of ECPG can be described as very cheap.
Based on the Price/Forward Earnings ratio, ECPG is valued cheaper than 87.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. ECPG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 5.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ECPG is valued a bit cheaper than 70.91% of the companies in the same industry.
ECPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 10.52 |
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 cheap valuation may be justified as ECPG's earnings are expected to decrease with -19.01% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y36.89%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
No dividends for ECPG!.
| 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 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.