ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
47.22 USD
+4.47 (+10.46%)
47.5 USD
+0.28 (+0.59%)
ECPG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. There are concerns on the financial health of ECPG while its profitability can be described as average. ECPG has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
ECPG had positive earnings in the past year.
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.
Each year in the past 5 years ECPG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.71%, ECPG is not doing good in the industry: 85.45% of the companies in the same industry are doing better.
ECPG has a worse Return On Equity (-9.91%) than 87.27% of its industry peers.
The Return On Invested Capital of ECPG (5.89%) 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 11.72%.
The 3 year average ROIC (5.57%) for ECPG is below the current ROIC(5.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -9.91% | ||
| ROIC | 5.89% |
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 (25.28%) is better than 81.82% of its industry peers.
In the last couple of years the Operating Margin of ECPG has declined.
ECPG has a better Gross Margin (78.54%) than 67.27% 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 | 25.28% | ||
| PM (TTM) | N/A | ||
| GM | 78.54% |
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.
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.
Compared to 1 year ago, ECPG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
ECPG's Altman-Z score of 0.93 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 41.46. This is a negative value and a sign of low solvency as ECPG would need 41.46 years to pay back of all of its debts.
ECPG has a Debt to FCF ratio (41.46) which is in line with its industry peers.
A Debt/Equity ratio of 4.43 is on the high side and indicates that ECPG has dependencies on debt financing.
ECPG's Debt to Equity ratio of 4.43 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 | 4.43 | ||
| Debt/FCF | 41.46 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.8
WACC7.37%
2.3 Liquidity
ECPG has a Current Ratio of 0.97. 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 (0.97) which is in line with its industry peers.
A Quick Ratio of 0.97 indicates that ECPG may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, ECPG perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
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 been growing slightly by 7.66% in the past year.
ECPG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.19% yearly.
EPS 1Y (TTM)206.06%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%151.59%
Revenue 1Y (TTM)7.66%
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.
The Revenue is expected to decrease by -22.84% on average over the next years. This is quite bad
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.
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
With a Price/Earnings ratio of 5.19, the valuation of ECPG can be described as very cheap.
ECPG's Price/Earnings ratio is rather cheap when compared to the industry. ECPG is cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of ECPG to the average of the S&P500 Index (25.67), we can say ECPG is valued rather cheaply.
A Price/Forward Earnings ratio of 5.61 indicates a rather cheap valuation of ECPG.
85.45% of the companies in the same industry are more expensive than ECPG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ECPG to the average of the S&P500 Index (31.86), we can say ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.19 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
ECPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 63.64% 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 | 11.36 | ||
| EV/EBITDA | 11.85 |
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.
A cheap valuation may be justified as ECPG's earnings are expected to decrease with -19.01% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
ECPG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.22
+4.47 (+10.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.35%
Inst Owner Change-0.24%
Ins Owners3.03%
Ins Owner Change1.73%
Market Cap1.09B
Revenue(TTM)1.32B
Net Income(TTM)-88790000
Analysts81.82
Price Target58.4 (23.68%)
Short Float %5.39%
Short Ratio4.03
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)64.01%
Min EPS beat(2)55.86%
Max EPS beat(2)72.16%
EPS beat(4)2
Avg EPS beat(4)27.05%
Min EPS beat(4)-16.57%
Max EPS beat(4)72.16%
EPS beat(8)3
Avg EPS beat(8)-9.39%
EPS beat(12)3
Avg EPS beat(12)-39.21%
EPS beat(16)7
Avg EPS beat(16)-12.81%
Revenue beat(2)2
Avg Revenue beat(2)7.94%
Min Revenue beat(2)2.83%
Max Revenue beat(2)13.05%
Revenue beat(4)2
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-30.44%
Max Revenue beat(4)13.05%
Revenue beat(8)3
Avg Revenue beat(8)-6.74%
Revenue beat(12)3
Avg Revenue beat(12)-5.76%
Revenue beat(16)3
Avg Revenue beat(16)-6.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.3%
EPS NY rev (1m)0%
EPS NY rev (3m)22.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.19 | ||
| Fwd PE | 5.61 | ||
| P/S | 0.74 | ||
| P/FCF | 11.36 | ||
| P/OCF | 8.76 | ||
| P/B | 1.21 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 11.85 |
EPS(TTM)9.09
EY19.25%
EPS(NY)8.42
Fwd EY17.83%
FCF(TTM)4.16
FCFY8.8%
OCF(TTM)5.39
OCFY11.41%
SpS63.78
BVpS38.94
TBVpS15.34
PEG (NY)0.08
PEG (5Y)N/A
Graham Number89.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -9.91% | ||
| ROCE | 7.46% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 7.05% | ||
| OM | 25.28% | ||
| PM (TTM) | N/A | ||
| GM | 78.54% | ||
| FCFM | 6.52% |
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-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 41.46 | ||
| Debt/EBITDA | 9.84 | ||
| Cap/Depr | 88.28% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 30.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.93 |
F-Score4
WACC7.37%
ROIC/WACC0.8
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)7.66%
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 1Y12.32%
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-31.68%
FCF growth 3Y-22.17%
FCF growth 5Y-9.12%
OCF growth 1Y-29.08%
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.