ENCORE CAPITAL GROUP INC (ECPG) Fundamental Analysis & Valuation

NASDAQ:ECPG • US2925541029

Current stock price

79.71 USD
+1.43 (+1.83%)
At close:
79.17 USD
-0.54 (-0.68%)
After Hours:

This ECPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ECPG Profitability Analysis

1.1 Basic Checks

  • In the past year ECPG was profitable.
  • In the past year ECPG had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: ECPG reported negative net income in multiple years.
  • In the past 5 years ECPG always reported a positive cash flow from operatings.
ECPG Yearly Net Income VS EBIT VS OCF VS FCFECPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • The Return On Assets of ECPG (4.81%) is better than 68.52% of its industry peers.
  • ECPG has a better Return On Equity (26.29%) than 77.78% of its industry peers.
  • ECPG's Return On Invested Capital of 9.37% is fine compared to the rest of the industry. ECPG outperforms 74.07% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ECPG is below the industry average of 9.60%.
  • The 3 year average ROIC (6.33%) for ECPG is below the current ROIC(9.37%), indicating increased profibility in the last year.
Industry RankSector 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%
ECPG Yearly ROA, ROE, ROICECPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

1.3 Margins

  • ECPG has a better Profit Margin (14.52%) than 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 better Operating Margin (35.43%) than 90.74% of its industry peers.
  • ECPG's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of ECPG (80.51%) is better than 75.93% of its industry peers.
  • ECPG's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ECPG Yearly Profit, Operating, Gross MarginsECPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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3

2. ECPG Health Analysis

2.1 Basic Checks

  • ECPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for ECPG has been reduced compared to 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.
ECPG Yearly Shares OutstandingECPG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
ECPG Yearly Total Debt VS Total AssetsECPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • ECPG has an Altman-Z score of 1.24. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
  • ECPG has a better Altman-Z score (1.24) than 70.37% 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 of 31.52. This is comparable to the rest of the industry: ECPG outperforms 44.44% of its industry peers.
  • A Debt/Equity ratio of 4.10 is on the high side and indicates that ECPG has dependencies on debt financing.
  • The Debt to Equity ratio of ECPG (4.10) is worse than 62.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.1
Debt/FCF 31.52
Altman-Z 1.24
ROIC/WACC1.21
WACC7.76%
ECPG Yearly LT Debt VS Equity VS FCFECPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.99 indicates that ECPG may have some problems paying 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.
  • 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 RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
ECPG Yearly Current Assets VS Current LiabilitesECPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ECPG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 117.03% over the past year.
  • The Earnings Per Share has been growing slightly by 7.15% on average over the past years.
  • 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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
  • The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y11.47%
EPS Next 2Y10.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.54%
Revenue Next 2Y5.15%
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.
ECPG Yearly Revenue VS EstimatesECPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
ECPG Yearly EPS VS EstimatesECPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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Find the best growth stocksShow best growing peers

7

4. ECPG Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.27, the valuation of ECPG can be described as very cheap.
  • ECPG's Price/Earnings ratio is a bit cheaper when compared to the industry. ECPG is cheaper than 64.81% of the companies in the same industry.
  • ECPG is valuated cheaply when we compare the Price/Earnings ratio to 27.34, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 6.52 indicates a rather cheap valuation of ECPG.
  • Based on the Price/Forward Earnings ratio, ECPG is valued cheaper than 81.48% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ECPG to the average of the S&P500 Index (38.18), we can say ECPG is valued rather cheaply.
Industry RankSector Rank
PE 7.27
Fwd PE 6.52
ECPG Price Earnings VS Forward Price EarningsECPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 79.63% 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 RankSector Rank
P/FCF 13.45
EV/EBITDA 8.47
ECPG Per share dataECPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ECPG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.63
PEG (5Y)1.02
EPS Next 2Y10.08%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ECPG Dividend Analysis

5.1 Amount

  • ECPG does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ECPG Fundamentals: All Metrics, Ratios and Statistics

ENCORE CAPITAL GROUP INC

NASDAQ:ECPG (4/14/2026, 8:03:35 PM)

After market: 79.17 -0.54 (-0.68%)

79.71

+1.43 (+1.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)02-25
Earnings (Next)05-06
Inst Owners106.52%
Inst Owner Change0.01%
Ins Owners3.29%
Ins Owner Change2.56%
Market Cap1.71B
Revenue(TTM)1.77B
Net Income(TTM)256.83M
Analysts80
Price Target84.32 (5.78%)
Short Float %5.8%
Short Ratio4.17
Dividend
Industry RankSector 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)21.57%
PT rev (3m)37.21%
EPS NQ rev (1m)5.74%
EPS NQ rev (3m)32.65%
EPS NY rev (1m)7.21%
EPS NY rev (3m)29.1%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)2.84%
Valuation
Industry RankSector Rank
PE 7.27
Fwd PE 6.52
P/S 0.96
P/FCF 13.45
P/OCF 11.14
P/B 1.75
P/tB 3.87
EV/EBITDA 8.47
EPS(TTM)10.96
EY13.75%
EPS(NY)12.22
Fwd EY15.33%
FCF(TTM)5.93
FCFY7.44%
OCF(TTM)7.16
OCFY8.98%
SpS82.62
BVpS45.62
TBVpS20.57
PEG (NY)0.63
PEG (5Y)1.02
Graham Number106.07
Profitability
Industry RankSector 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 RankSector 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 1.24
F-Score8
WACC7.76%
ROIC/WACC1.21
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 Y11.47%
EPS Next 2Y10.08%
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 Year5.54%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y116.87%
EBIT growth 3Y19.3%
EBIT growth 5Y3.55%
EBIT Next Year16.13%
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 Fundamental Analysis 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 7 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Undervalued.


What is the profitability of ECPG stock?

ENCORE CAPITAL GROUP INC (ECPG) has a profitability rating of 6 / 10.


What is the earnings growth outlook for ENCORE CAPITAL GROUP INC?

The Earnings per Share (EPS) of ENCORE CAPITAL GROUP INC (ECPG) is expected to grow by 11.47% in the next year.