ENCORE CAPITAL GROUP INC (ECPG) Stock Fundamental Analysis
USA - NASDAQ:ECPG - US2925541029 - Common Stock
41.36 USD
+0.83 (+2.05%)
41.36 USD
0 (0%)
Taking everything into account, ECPG scores 3 out of 10 in our fundamental rating. ECPG was compared to 55 industry peers in the Consumer Finance industry. ECPG has a medium profitability rating, but doesn't score so well on its financial health evaluation. ECPG is cheap, but on the other hand it scores bad on growth.
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 worse Return On Assets (-1.71%) than 83.64% of its industry peers.
The Return On Equity of ECPG (-9.91%) is worse than 85.45% of its industry peers.
With a decent Return On Invested Capital value of 5.89%, ECPG is doing good in the industry, outperforming 69.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ECPG is significantly below the industry average of 10.98%.
The 3 year average ROIC (5.57%) for ECPG is below the current ROIC(5.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -9.91% | ||
| ROIC | 5.89% |
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 an excellent Operating Margin value of 25.28%, ECPG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
ECPG's Operating Margin has declined in the last couple of years.
The Gross Margin of ECPG (78.54%) is better than 67.27% of its industry peers.
ECPG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.28% | ||
| PM (TTM) | N/A | ||
| GM | 78.54% |
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.
Compared to 5 years ago, ECPG has less shares outstanding
Compared to 1 year ago, ECPG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that ECPG is in the distress zone and has some risk of bankruptcy.
ECPG has a Altman-Z score of 0.92. This is in the better half of the industry: ECPG outperforms 65.45% of its industry peers.
The Debt to FCF ratio of ECPG is 41.46, which is on the high side as it means it would take ECPG, 41.46 years of fcf income to pay off all of its debts.
ECPG has a Debt to FCF ratio of 41.46. This is comparable to the rest of the industry: ECPG outperforms 45.45% of its industry peers.
ECPG has a Debt/Equity ratio of 4.43. This is a high value indicating a heavy dependency on external financing.
ECPG has a worse Debt to Equity ratio (4.43) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 41.46 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.83
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ECPG may have some problems paying its short term obligations.
ECPG has a Current ratio (0.97) which is comparable to the rest of the industry.
A Quick Ratio of 0.97 indicates that ECPG may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, ECPG perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 187.20% 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.
The Revenue has grown by 13.96% in the past year. This is quite good.
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)187.2%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%85.82%
Revenue 1Y (TTM)13.96%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%20.45%
3.2 Future
The Earnings Per Share is expected to decrease by -19.01% on average over the next years. This is quite bad
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 5.76, which indicates a rather cheap valuation of ECPG.
Compared to the rest of the industry, the Price/Earnings ratio of ECPG indicates a somewhat cheap valuation: ECPG is cheaper than 78.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ECPG to the average of the S&P500 Index (27.40), we can say ECPG is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.91, the valuation of ECPG can be described as very cheap.
Based on the Price/Forward Earnings ratio, ECPG is valued cheaper than 85.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, ECPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.76 | ||
| Fwd PE | 4.91 |
4.2 Price Multiples
67.27% 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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 11.77 |
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 decrease with -19.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
5. Dividend
5.1 Amount
ECPG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.36
+0.83 (+2.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners111.35%
Inst Owner Change0.09%
Ins Owners3.03%
Ins Owner Change1.73%
Market Cap951.69M
Analysts81.82
Price Target58.4 (41.2%)
Short Float %7.2%
Short Ratio5.17
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)64.01%
Min EPS beat(2)55.86%
Max EPS beat(2)72.16%
EPS beat(4)2
Avg EPS beat(4)27.05%
Min EPS beat(4)-16.57%
Max EPS beat(4)72.16%
EPS beat(8)3
Avg EPS beat(8)-9.39%
EPS beat(12)3
Avg EPS beat(12)-39.21%
EPS beat(16)7
Avg EPS beat(16)-12.81%
Revenue beat(2)2
Avg Revenue beat(2)7.94%
Min Revenue beat(2)2.83%
Max Revenue beat(2)13.05%
Revenue beat(4)2
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-30.44%
Max Revenue beat(4)13.05%
Revenue beat(8)3
Avg Revenue beat(8)-6.74%
Revenue beat(12)3
Avg Revenue beat(12)-5.76%
Revenue beat(16)3
Avg Revenue beat(16)-6.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.3%
EPS NY rev (1m)3.09%
EPS NY rev (3m)22.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.76 | ||
| Fwd PE | 4.91 | ||
| P/S | 0.65 | ||
| P/FCF | 9.95 | ||
| P/OCF | 7.68 | ||
| P/B | 1.06 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)7.18
EY17.36%
EPS(NY)8.42
Fwd EY20.36%
FCF(TTM)4.16
FCFY10.05%
OCF(TTM)5.39
OCFY13.03%
SpS63.78
BVpS38.94
TBVpS15.34
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -9.91% | ||
| ROCE | 7.46% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 7.05% | ||
| OM | 25.28% | ||
| PM (TTM) | N/A | ||
| GM | 78.54% | ||
| FCFM | 6.52% |
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%
ROICexcg growth 3Y-19.09%
ROICexcg 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-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.43 | ||
| Debt/FCF | 41.46 | ||
| Debt/EBITDA | 9.84 | ||
| Cap/Depr | 88.28% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 30.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.92 |
F-Score4
WACC7.08%
ROIC/WACC0.83
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)187.2%
EPS 3Y-24.04%
EPS 5Y-3.19%
EPS Q2Q%85.82%
EPS Next Y65.87%
EPS Next 2Y29.13%
EPS Next 3Y-19.01%
EPS Next 5YN/A
Revenue 1Y (TTM)13.96%
Revenue growth 3Y-2.39%
Revenue growth 5Y-1.19%
Sales Q2Q%20.45%
Revenue Next Year15.63%
Revenue Next 2Y10.63%
Revenue Next 3Y-22.84%
Revenue Next 5YN/A
EBIT growth 1Y12.32%
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-31.68%
FCF growth 3Y-22.17%
FCF growth 5Y-9.12%
OCF growth 1Y-29.08%
OCF growth 3Y-19.83%
OCF growth 5Y-8.59%