ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
48.72 USD
+0.65 (+1.35%)
49.1101 USD
+0.39 (+0.8%)
ECPG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 55 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 bad growth rate and is valued cheaply.
1. Profitability
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 Return On Assets of -0.86%. This is amonst the worse of the industry: ECPG underperforms 85.45% of its industry peers.
The Return On Equity of ECPG (-4.74%) is worse than 89.09% of its industry peers.
ECPG's Return On Invested Capital of 6.93% is fine compared to the rest of the industry. ECPG outperforms 69.09% 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 11.61%.
The last Return On Invested Capital (6.93%) for ECPG is above the 3 year average (5.57%), which is a sign of increasing profitability.
| 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
With a decent Operating Margin value of 28.07%, ECPG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ECPG has declined.
With a decent Gross Margin value of 79.06%, ECPG is doing good in the industry, outperforming 69.09% 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 | 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.
The number of shares outstanding for ECPG has been increased compared to 1 year ago.
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 1.00. 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 (1.00) than 63.64% of its industry peers.
The Debt to FCF ratio of ECPG is 29.98, which is on the high side as it means it would take ECPG, 29.98 years of fcf income to pay off all of its debts.
ECPG's Debt to FCF ratio of 29.98 is in line compared to the rest of the industry. ECPG outperforms 45.45% of its industry peers.
A Debt/Equity ratio of 4.13 is on the high side and indicates that ECPG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.13, ECPG is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.13 | ||
| Debt/FCF | 29.98 | ||
| Altman-Z | 1 |
ROIC/WACC0.93
WACC7.42%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ECPG may have some problems paying its short term obligations.
ECPG has a Current ratio (0.80) which is comparable to the rest of the industry.
ECPG has a Quick Ratio of 0.80. 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 Quick ratio of 0.80 is in line compared to the rest of the industry. ECPG outperforms 43.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 206.06% over the past year.
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)206.06%
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.
The Revenue is expected to decrease by -22.84% on average over the next years. This is quite bad
EPS Next Y65.87%
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue Next Year15.63%
Revenue Next 2Y10.63%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 5.36, which indicates a rather cheap valuation of ECPG.
Based on the Price/Earnings ratio, ECPG is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. ECPG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.79, which indicates a rather cheap valuation of ECPG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ECPG indicates a rather cheap valuation: ECPG is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 5.79 |
4.2 Price Multiples
69.09% of the companies in the same industry are more expensive than ECPG, based on the Enterprise Value to EBITDA ratio.
ECPG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.54 | ||
| EV/EBITDA | 10.37 |
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's earnings are expected to decrease with -19.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
No dividends for ECPG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.72
+0.65 (+1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.35%
Inst Owner Change-5.42%
Ins Owners3.03%
Ins Owner Change2.04%
Market Cap1.12B
Revenue(TTM)1.56B
Net Income(TTM)-45.13M
Analysts81.82
Price Target58.4 (19.87%)
Short Float %5.22%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)4.36%
EPS beat(12)4
Avg EPS beat(12)-30.77%
EPS beat(16)7
Avg EPS beat(16)-10.37%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)5.23%
EPS NQ rev (3m)15.26%
EPS NY rev (1m)0%
EPS NY rev (3m)22.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 5.79 | ||
| P/S | 0.72 | ||
| P/FCF | 8.54 | ||
| P/OCF | 7.03 | ||
| P/B | 1.18 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)9.09
EY18.66%
EPS(NY)8.42
Fwd EY17.28%
FCF(TTM)5.7
FCFY11.7%
OCF(TTM)6.93
OCFY14.23%
SpS67.83
BVpS41.41
TBVpS18.14
PEG (NY)0.08
PEG (5Y)N/A
Graham Number92.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.86% | ||
| ROE | -4.74% | ||
| ROCE | 8.77% | ||
| ROIC | 6.93% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 8.26% | ||
| 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 | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1 |
F-Score5
WACC7.42%
ROIC/WACC0.93
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)206.06%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%151.59%
EPS Next Y65.87%
EPS Next 2Y29.13%
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 Year15.63%
Revenue Next 2Y10.63%
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 Year40.24%
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.
What is the valuation status of ENCORE CAPITAL GROUP INC (ECPG) stock?
ChartMill assigns a valuation rating of 7 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Undervalued.
Can you provide the profitability details for ENCORE CAPITAL GROUP INC?
ENCORE CAPITAL GROUP INC (ECPG) has a profitability rating of 4 / 10.
How financially healthy is ENCORE CAPITAL GROUP INC?
The financial health rating of ENCORE CAPITAL GROUP INC (ECPG) is 2 / 10.