ENCORE CAPITAL GROUP INC (ECPG) Fundamental Analysis & Valuation
NASDAQ:ECPG • US2925541029
70.68 USD
-2 (-2.75%)
At close: Mar 6, 2026
70.68 USD
0 (0%)
After Hours: 3/6/2026, 8:13:36 PM
This ECPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ECPG gets a fundamental rating of 5 out of 10. We evaluated ECPG 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
- In the past year ECPG was profitable.
- ECPG had a positive operating cash flow in the past year.
- In multiple years ECPG reported negative net income over the last 5 years.
- In the past 5 years ECPG always reported a positive cash flow from operatings.
1.2 Ratios
- ECPG has a better Return On Assets (4.81%) than 62.96% of its industry peers.
- ECPG's Return On Equity of 26.29% is amongst the best of the industry. ECPG outperforms 81.48% of its industry peers.
- ECPG's Return On Invested Capital of 9.37% is fine compared to the rest of the industry. ECPG outperforms 72.22% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ECPG is significantly below the industry average of 12.33%.
- 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's Profit Margin of 14.52% is fine compared to the rest 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 has a Operating Margin of 35.43%. This is amongst the best in the industry. ECPG outperforms 87.04% of its industry peers.
- ECPG's Operating Margin has been stable in the last couple of years.
- ECPG has a Gross Margin of 80.51%. This is in the better half of the industry: ECPG outperforms 74.07% 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 | 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ECPG is creating some value.
- Compared to 1 year ago, ECPG has less shares outstanding
- Compared to 5 years ago, ECPG has less shares outstanding
- Compared to 1 year ago, ECPG has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.22, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
- ECPG has a better Altman-Z score (1.22) than 70.37% of its industry peers.
- The Debt to FCF ratio of ECPG is 31.52, which is on the high side as it means it would take ECPG, 31.52 years of fcf income to pay off all of its debts.
- ECPG has a Debt to FCF ratio (31.52) which is comparable to the rest of the industry.
- ECPG has a Debt/Equity ratio of 4.10. This is a high value indicating a heavy dependency on external financing.
- ECPG's Debt to Equity ratio of 4.10 is in line compared to the rest of the industry. ECPG outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.1 | ||
| Debt/FCF | 31.52 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.23
WACC7.59%
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.
- ECPG's Current ratio of 0.99 is in line compared to the rest of the industry. ECPG outperforms 44.44% of its industry peers.
- ECPG has a Quick 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.
- Looking at the Quick ratio, with a value of 0.99, ECPG is in line with its industry, outperforming 44.44% of the companies in the same industry.
| 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.
- Measured over the past 5 years, ECPG shows a small growth in Earnings Per Share. The EPS has been growing by 7.15% on average per year.
- ECPG shows a strong growth in Revenue. In the last year, 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
- Based on estimates for the next years, ECPG will show a small growth in Earnings Per Share. The EPS will grow by 6.19% on average per year.
- Based on estimates for the next years, ECPG will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
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
- The Price/Earnings ratio is 6.45, 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 66.67% of the companies are valued more expensively.
- ECPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
- ECPG is valuated cheaply with a Price/Forward Earnings ratio of 6.20.
- ECPG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ECPG is 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 (24.57), we can say ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
- ECPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 72.22% of the companies in the same industry.
- ECPG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.92 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ECPG may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)0.9
EPS Next 2Y6.19%
EPS Next 3YN/A
5. ECPG Dividend Analysis
5.1 Amount
- ECPG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ECPG Fundamentals: All Metrics, Ratios and Statistics
70.68
-2 (-2.75%)
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 Cap1.51B
Revenue(TTM)1.77B
Net Income(TTM)256.83M
Analysts80
Price Target69.36 (-1.87%)
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 | 6.45 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.86 | ||
| P/FCF | 11.92 | ||
| P/OCF | 9.88 | ||
| P/B | 1.55 | ||
| P/tB | 3.44 | ||
| EV/EBITDA | 8.24 |
EPS(TTM)10.96
EY15.51%
EPS(NY)11.4
Fwd EY16.12%
FCF(TTM)5.93
FCFY8.39%
OCF(TTM)7.16
OCFY10.12%
SpS82.62
BVpS45.62
TBVpS20.57
PEG (NY)1.62
PEG (5Y)0.9
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
WACC7.59%
ROIC/WACC1.23
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 6.45 and the Price/Book (PB) ratio is 1.55.
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.