ENCORE CAPITAL GROUP INC (ECPG)
US2925541029 - Common Stock
ECPG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. While ECPG is still in line with the averages on profitability rating, there are concerns on its financial health. ECPG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ECPG was profitable.
In the past year ECPG had a positive cash flow from operations.
Of the past 5 years ECPG 4 years were profitable.
Each year in the past 5 years ECPG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ECPG (-4.46%) is worse than 74.51% of its industry peers.
ECPG has a worse Return On Equity (-22.06%) than 78.43% of its industry peers.
ECPG has a Return On Invested Capital of 5.02%. This is in the better half of the industry: ECPG outperforms 76.47% of its industry peers.
ECPG had an Average Return On Invested Capital over the past 3 years of 5.63%. This is in line with the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.46% | ||
| ROE | -22.06% | ||
| ROIC | 5.02% |
ROA(3y)2.49%
ROA(5y)3.05%
ROE(3y)8.01%
ROE(5y)11.57%
ROIC(3y)5.63%
ROIC(5y)6.07%
1.3 Margins
ECPG's Operating Margin of 27.28% is fine compared to the rest of the industry. ECPG outperforms 72.55% of its industry peers.
In the last couple of years the Operating Margin of ECPG has declined.
ECPG has a Gross Margin of 80.09%. This is in the better half of the industry: ECPG outperforms 76.47% 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 | 27.28% | ||
| PM (TTM) | N/A | ||
| GM | 80.09% |
OM growth 3Y-8.17%
OM growth 5Y-1.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ECPG is destroying value.
Compared to 1 year ago, ECPG has more shares outstanding
ECPG has less shares outstanding than it did 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 1.02. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ECPG (1.02) is better than 66.67% of its industry peers.
The Debt to FCF ratio of ECPG is 25.88, which is on the high side as it means it would take ECPG, 25.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.88, ECPG is in line with its industry, outperforming 43.14% of the companies in the same industry.
A Debt/Equity ratio of 3.54 is on the high side and indicates that ECPG has dependencies on debt financing.
ECPG has a Debt to Equity ratio of 3.54. This is in the lower half of the industry: ECPG underperforms 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | 25.88 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.81
WACC6.22%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ECPG should not have too much problems paying its short term obligations.
ECPG has a Current ratio (1.05) which is in line with its industry peers.
ECPG has a Quick Ratio of 1.05. This is a normal value and indicates that ECPG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ECPG (1.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for ECPG have decreased strongly by -70.00% in the last year.
Measured over the past years, ECPG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.25% on average per year.
The Revenue has decreased by 0.00% in the past year.
The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-70%
EPS 3Y-35.94%
EPS 5Y-16.25%
EPS growth Q2Q81.35%
Revenue 1Y (TTM)0%
Revenue growth 3Y-4.41%
Revenue growth 5Y-0.85%
Revenue growth Q2Q3.05%
3.2 Future
The Earnings Per Share is expected to grow by 110.21% on average over the next years. This is a very strong growth
ECPG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.78% yearly.
EPS Next Y197.93%
EPS Next 2Y110.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.37%
Revenue Next 2Y12.78%
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 accelerating.
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.90, which indicates a rather expensive current valuation of ECPG.
Based on the Price/Earnings ratio, ECPG is valued a bit more expensive than the industry average as 62.75% of the companies are valued more cheaply.
ECPG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
ECPG is valuated cheaply with a Price/Forward Earnings ratio of 7.02.
Based on the Price/Forward Earnings ratio, ECPG is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
ECPG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
84.31% of the companies in the same industry are more expensive than ECPG, based on the Enterprise Value to EBITDA ratio.
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 | 7.83 | ||
| EV/EBITDA | 10.49 |
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 grow with 110.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y110.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ENCORE CAPITAL GROUP INC
NASDAQ:ECPG (4/25/2024, 11:06:51 AM)
42.64
-0.41 (-0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 7.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.46% | ||
| ROE | -22.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.28% | ||
| PM (TTM) | N/A | ||
| GM | 80.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-70%
EPS 3Y-35.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y197.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0%
Revenue growth 3Y-4.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y