ENCORE CAPITAL GROUP INC (ECPG) Fundamental Analysis & Valuation
NASDAQ:ECPG • US2925541029
72.65 USD
+0.79 (+1.1%)
Last: Mar 4, 2026, 10:24 AM
This ECPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ECPG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 industry peers in the Consumer Finance industry. ECPG scores excellent on profitability, but there are concerns on its financial health. ECPG is not valued too expensively and it also shows a decent growth rate.
1. ECPG Profitability Analysis
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.
- ECPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ECPG has a better Return On Assets (4.81%) than 64.81% of its industry peers.
- ECPG's Return On Equity of 26.29% is amongst the best of the industry. ECPG outperforms 83.33% of its industry peers.
- With a decent Return On Invested Capital value of 9.37%, ECPG is doing good in the industry, outperforming 70.37% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ECPG is significantly below the industry average of 12.27%.
- The last Return On Invested Capital (9.37%) for ECPG is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 26.29% | ||
| ROIC | 9.37% |
ROA(3y)-0.85%
ROA(5y)1.87%
ROE(3y)-4.63%
ROE(5y)6.44%
ROIC(3y)6.33%
ROIC(5y)6.68%
1.3 Margins
- ECPG has a Profit Margin of 14.52%. This is in the better half of the industry: ECPG outperforms 62.96% of its industry peers.
- In the last couple of years the Profit Margin of ECPG has remained more or less at the same level.
- ECPG's Operating Margin of 35.43% is amongst the best of the industry. ECPG outperforms 87.04% of its industry peers.
- ECPG's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 80.51%, ECPG is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
- ECPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.43% | ||
| PM (TTM) | 14.52% | ||
| GM | 80.51% |
OM growth 3Y7.8%
OM growth 5Y0.12%
PM growth 3Y-0.88%
PM growth 5Y0.48%
GM growth 3Y-0.03%
GM growth 5Y-0.04%
2. ECPG Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ECPG is still creating some value.
- ECPG has less shares outstanding than it did 1 year ago.
- ECPG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ECPG has been reduced compared to a year ago.
2.2 Solvency
- ECPG has an Altman-Z score of 1.22. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
- ECPG's Altman-Z score of 1.22 is fine compared to the rest of the industry. ECPG outperforms 72.22% of its industry peers.
- ECPG has a debt to FCF ratio of 31.52. This is a negative value and a sign of low solvency as ECPG would need 31.52 years to pay back of all of its debts.
- ECPG has a Debt to FCF ratio (31.52) which is in line with its industry peers.
- A Debt/Equity ratio of 4.10 is on the high side and indicates that ECPG has dependencies on debt financing.
- With a Debt to Equity ratio value of 4.10, ECPG perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.1 | ||
| Debt/FCF | 31.52 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.24
WACC7.56%
2.3 Liquidity
- ECPG has a Current Ratio of 0.99. 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 Current ratio of ECPG (0.99) is comparable to the rest of the industry.
- A Quick Ratio of 0.99 indicates that ECPG may have some problems paying its short term obligations.
- ECPG has a Quick ratio of 0.99. This is comparable to the rest of the industry: ECPG outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. ECPG Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 117.03% over the past year.
- ECPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.15% yearly.
- Looking at the last year, ECPG shows a very strong growth in Revenue. The Revenue has grown by 34.37%.
- The Revenue has been growing slightly by 3.43% on average over the past years.
EPS 1Y (TTM)117.03%
EPS 3Y17.25%
EPS 5Y7.15%
EPS Q2Q%124.67%
Revenue 1Y (TTM)34.37%
Revenue growth 3Y10.66%
Revenue growth 5Y3.43%
Sales Q2Q%78.28%
3.2 Future
- ECPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.19% yearly.
- ECPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y3.98%
EPS Next 2Y6.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.62%
Revenue Next 2Y4.55%
Revenue Next 3YN/A
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. ECPG Valuation Analysis
4.1 Price/Earnings Ratio
- ECPG is valuated cheaply with a Price/Earnings ratio of 6.63.
- Based on the Price/Earnings ratio, ECPG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, ECPG is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.38, which indicates a rather cheap valuation of ECPG.
- ECPG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 77.78% of the companies in the same industry.
- ECPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 6.38 |
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 74.07% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ECPG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
- ECPG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ECPG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)0.93
EPS Next 2Y6.19%
EPS Next 3YN/A
5. ECPG Dividend Analysis
5.1 Amount
- No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ECPG Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:ECPG (3/4/2026, 10:24:49 AM)
72.65
+0.79 (+1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)02-25 2026-02-25/amc
Earnings (Next)05-05 2026-05-05
Inst Owners108.51%
Inst Owner Change-4.82%
Ins Owners3.06%
Ins Owner Change-0.77%
Market Cap1.56B
Revenue(TTM)1.77B
Net Income(TTM)256.83M
Analysts80
Price Target69.36 (-4.53%)
Short Float %5.2%
Short Ratio5.32
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)63.03%
Min EPS beat(2)57.52%
Max EPS beat(2)68.54%
EPS beat(4)4
Avg EPS beat(4)63.52%
Min EPS beat(4)55.86%
Max EPS beat(4)72.16%
EPS beat(8)5
Avg EPS beat(8)29.83%
EPS beat(12)5
Avg EPS beat(12)11.81%
EPS beat(16)7
Avg EPS beat(16)1.37%
Revenue beat(2)2
Avg Revenue beat(2)9.93%
Min Revenue beat(2)9.89%
Max Revenue beat(2)9.97%
Revenue beat(4)4
Avg Revenue beat(4)8.93%
Min Revenue beat(4)2.83%
Max Revenue beat(4)13.05%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)5
Avg Revenue beat(12)-3.56%
Revenue beat(16)5
Avg Revenue beat(16)-3.79%
PT rev (1m)12.86%
PT rev (3m)12.86%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)11.34%
EPS NY rev (1m)-3.08%
EPS NY rev (3m)8.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 6.38 | ||
| P/S | 0.88 | ||
| P/FCF | 12.25 | ||
| P/OCF | 10.15 | ||
| P/B | 1.59 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)10.96
EY15.09%
EPS(NY)11.4
Fwd EY15.69%
FCF(TTM)5.93
FCFY8.16%
OCF(TTM)7.16
OCFY9.85%
SpS82.62
BVpS45.62
TBVpS20.57
PEG (NY)1.67
PEG (5Y)0.93
Graham Number106.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 26.29% | ||
| ROCE | 12.26% | ||
| ROIC | 9.37% | ||
| ROICexc | 9.67% | ||
| ROICexgc | 10.99% | ||
| OM | 35.43% | ||
| PM (TTM) | 14.52% | ||
| GM | 80.51% | ||
| FCFM | 7.18% |
ROA(3y)-0.85%
ROA(5y)1.87%
ROE(3y)-4.63%
ROE(5y)6.44%
ROIC(3y)6.33%
ROIC(5y)6.68%
ROICexc(3y)6.57%
ROICexc(5y)6.94%
ROICexgc(3y)7.68%
ROICexgc(5y)8.63%
ROCE(3y)8.29%
ROCE(5y)8.74%
ROICexgc growth 3Y6.53%
ROICexgc growth 5Y-1.59%
ROICexc growth 3Y12.35%
ROICexc growth 5Y1.25%
OM growth 3Y7.8%
OM growth 5Y0.12%
PM growth 3Y-0.88%
PM growth 5Y0.48%
GM growth 3Y-0.03%
GM growth 5Y-0.04%
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.1 | ||
| Debt/FCF | 31.52 | ||
| Debt/EBITDA | 6.11 | ||
| Cap/Depr | 91.34% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 2.41 | ||
| Cash Conversion | 23.37% | ||
| Profit Quality | 49.42% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.22 |
F-Score8
WACC7.56%
ROIC/WACC1.24
Cap/Depr(3y)80.07%
Cap/Depr(5y)76.11%
Cap/Sales(3y)1.91%
Cap/Sales(5y)2.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)117.03%
EPS 3Y17.25%
EPS 5Y7.15%
EPS Q2Q%124.67%
EPS Next Y3.98%
EPS Next 2Y6.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.37%
Revenue growth 3Y10.66%
Revenue growth 5Y3.43%
Sales Q2Q%78.28%
Revenue Next Year4.62%
Revenue Next 2Y4.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y116.87%
EBIT growth 3Y19.3%
EBIT growth 5Y3.55%
EBIT Next Year13.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.18%
FCF growth 3Y-9.89%
FCF growth 5Y-14.53%
OCF growth 1Y-1.9%
OCF growth 3Y-10.08%
OCF growth 5Y-13.31%
ENCORE CAPITAL GROUP INC / ECPG FAQ
Can you provide the ChartMill fundamental rating for ENCORE CAPITAL GROUP INC?
ChartMill assigns a fundamental rating of 5 / 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 7 / 10.
Can you provide the PE and PB ratios for ECPG stock?
The Price/Earnings (PE) ratio for ENCORE CAPITAL GROUP INC (ECPG) is 6.63 and the Price/Book (PB) ratio is 1.59.
What is the financial health of ENCORE CAPITAL GROUP INC (ECPG) stock?
The financial health rating of ENCORE CAPITAL GROUP INC (ECPG) is 3 / 10.