ENCORE CAPITAL GROUP INC (ECPG) Fundamental Analysis & Valuation
NASDAQ:ECPG • US2925541029
Current stock price
75.43 USD
-0.93 (-1.22%)
At close:
75.43 USD
0 (0%)
After Hours:
This ECPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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
- With a decent Return On Assets value of 4.81%, ECPG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 26.29%, ECPG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- ECPG has a Return On Invested Capital of 9.37%. This is in the better half of the industry: ECPG outperforms 74.07% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ECPG is below the industry average of 9.87%.
- 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
- Looking at the Profit Margin, with a value of 14.52%, ECPG is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
- ECPG's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 35.43%, ECPG belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of ECPG has remained more or less at the same level.
- ECPG has a better Gross Margin (80.51%) than 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ECPG is still creating some value.
- Compared to 1 year ago, ECPG has less shares outstanding
- Compared to 5 years ago, ECPG has less shares outstanding
- The debt/assets ratio for ECPG has been reduced compared to a year ago.
2.2 Solvency
- ECPG has an Altman-Z score of 1.23. This is a bad value and indicates that ECPG is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.23, ECPG is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
- 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.
- With a Debt to FCF ratio value of 31.52, ECPG perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
- A Debt/Equity ratio of 4.10 is on the high side and indicates that ECPG has dependencies on debt financing.
- ECPG's Debt to Equity ratio of 4.10 is on the low side compared to the rest of the industry. ECPG is outperformed by 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.1 | ||
| Debt/FCF | 31.52 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.21
WACC7.77%
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 has a Current ratio of 0.99. This is comparable 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.
- The Quick ratio of ECPG (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. ECPG Growth Analysis
3.1 Past
- ECPG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.03%, which is quite impressive.
- 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%.
- Measured over the past years, ECPG shows a small growth in Revenue. The Revenue has been growing by 3.43% on average per year.
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.
- Based on estimates for the next years, ECPG will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y3.98%
EPS Next 2Y6.19%
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 stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. ECPG Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.88, the valuation of ECPG can be described as very cheap.
- 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 26.78, ECPG is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.62, the valuation of ECPG can be described as very cheap.
- 79.63% of the companies in the same industry are more expensive than ECPG, based on the Price/Forward Earnings ratio.
- ECPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.62 |
4.2 Price Multiples
- 79.63% 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 | 12.72 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
- ECPG's 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)1.73
PEG (5Y)0.96
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
75.43
-0.93 (-1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)02-25 2026-02-25/amc
Earnings (Next)05-06 2026-05-06
Inst Owners106.52%
Inst Owner Change0%
Ins Owners3.29%
Ins Owner Change2.56%
Market Cap1.61B
Revenue(TTM)1.77B
Net Income(TTM)256.83M
Analysts80
Price Target84.32 (11.79%)
Short Float %5.11%
Short Ratio4.2
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)21.57%
PT rev (3m)37.21%
EPS NQ rev (1m)5.74%
EPS NQ rev (3m)32.65%
EPS NY rev (1m)0%
EPS NY rev (3m)20.42%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 6.62 | ||
| P/S | 0.91 | ||
| P/FCF | 12.72 | ||
| P/OCF | 10.54 | ||
| P/B | 1.65 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 8.36 |
EPS(TTM)10.96
EY14.53%
EPS(NY)11.4
Fwd EY15.11%
FCF(TTM)5.93
FCFY7.86%
OCF(TTM)7.16
OCFY9.49%
SpS82.62
BVpS45.62
TBVpS20.57
PEG (NY)1.73
PEG (5Y)0.96
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 | 1.23 |
F-Score8
WACC7.77%
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 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 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 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 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 6 / 10 to ENCORE CAPITAL GROUP INC (ECPG). This can be considered as Fairly Valued.
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 3.98% in the next year.