ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
NASDAQ:ECPG • US2925541029
57.16 USD
-0.24 (-0.42%)
At close: Feb 12, 2026
57.16 USD
0 (0%)
After Hours: 2/12/2026, 8:00:02 PM
We assign a fundamental rating of 3 out of 10 to ECPG. ECPG was compared to 54 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ECPG was profitable.
- 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.
- ECPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ECPG has a Return On Assets of -0.86%. This is amonst the worse of the industry: ECPG underperforms 85.19% of its industry peers.
- ECPG has a worse Return On Equity (-4.74%) than 83.33% of its industry peers.
- The Return On Invested Capital of ECPG (6.93%) is better than 66.67% 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 12.09%.
- 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
- Looking at the Operating Margin, with a value of 28.07%, ECPG is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
- ECPG's Operating Margin has declined in the last couple of years.
- The Gross Margin of ECPG (79.06%) is better than 72.22% of its industry peers.
- ECPG's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, ECPG has a worse debt to assets ratio.
2.2 Solvency
- ECPG has an Altman-Z score of 1.03. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.03, ECPG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of ECPG (29.98) is comparable to the rest of the industry.
- A Debt/Equity ratio of 4.13 is on the high side and indicates that ECPG has dependencies on debt 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 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.92
WACC7.51%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that ECPG may have some problems paying its short term obligations.
- ECPG's Current ratio of 0.93 is in line compared to the rest of the industry. ECPG outperforms 46.30% of its industry peers.
- ECPG has a Quick Ratio of 0.93. This is a bad value and indicates that ECPG is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.93, ECPG perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- ECPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.38%, 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.
- ECPG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.52%.
- 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)89.38%
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 Y95.52%
EPS Next 2Y34.77%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue Next Year20.66%
Revenue Next 2Y11.12%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 6.29, the valuation of ECPG can be described as very cheap.
- 68.52% of the companies in the same industry are more expensive than ECPG, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.67, ECPG is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.23, the valuation of ECPG can be described as very cheap.
- Based on the Price/Forward Earnings ratio, ECPG is valued a bit cheaper than 79.63% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ECPG to the average of the S&P500 Index (27.69), we can say ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 6.23 |
4.2 Price Multiples
- 68.52% of the companies in the same industry are more expensive than ECPG, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ECPG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.71 | ||
| EV/EBITDA | 10.73 |
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)0.07
PEG (5Y)N/A
EPS Next 2Y34.77%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
- No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
57.16
-0.24 (-0.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners108.51%
Inst Owner Change-3.66%
Ins Owners3.06%
Ins Owner Change-0.71%
Market Cap1.27B
Revenue(TTM)1.56B
Net Income(TTM)-45.13M
Analysts81.82
Price Target69.36 (21.34%)
Short Float %5.01%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)22.59%
EPS beat(12)4
Avg EPS beat(12)-18.62%
EPS beat(16)7
Avg EPS beat(16)-1.25%
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)12.86%
PT rev (3m)18.78%
EPS NQ rev (1m)-3.52%
EPS NQ rev (3m)2.12%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)17.88%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 6.23 | ||
| P/S | 0.82 | ||
| P/FCF | 9.71 | ||
| P/OCF | 7.99 | ||
| P/B | 1.34 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)9.09
EY15.9%
EPS(NY)9.17
Fwd EY16.05%
FCF(TTM)5.88
FCFY10.29%
OCF(TTM)7.15
OCFY12.52%
SpS69.99
BVpS42.73
TBVpS18.71
PEG (NY)0.07
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 | 8.19% | ||
| 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 | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.03 |
F-Score5
WACC7.51%
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)89.38%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%151.59%
EPS Next Y95.52%
EPS Next 2Y34.77%
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 Year20.66%
Revenue Next 2Y11.12%
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.
Can you provide the valuation status for ENCORE CAPITAL GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Fairly Valued.
How profitable is ENCORE CAPITAL GROUP INC (ECPG) stock?
ENCORE CAPITAL GROUP INC (ECPG) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ECPG stock?
The Price/Earnings (PE) ratio for ENCORE CAPITAL GROUP INC (ECPG) is 6.29 and the Price/Book (PB) ratio is 1.34.
What is the financial health of ENCORE CAPITAL GROUP INC (ECPG) stock?
The financial health rating of ENCORE CAPITAL GROUP INC (ECPG) is 2 / 10.