Encore Capital Group, Inc., a specialty finance company, together with its subsidiaries, provides debt recovery solutions and other related services for consumers across a range of financial assets worldwide.
Undervalued with solid track record.
Share Price & News
How has Encore Capital Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ECPG has not had significant price volatility in the past 3 months.
7 Day Return
US Consumer Finance
1 Year Return
US Consumer Finance
Return vs Industry: ECPG underperformed the US Consumer Finance industry which returned 12.9% over the past year.
Return vs Market: ECPG underperformed the US Market which returned 18% over the past year.
Price Volatility Vs. Market
How volatile is Encore Capital Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StIs Encore Capital Group, Inc.'s (NASDAQ:ECPG) CEO Salary Justified?
4 weeks ago | Simply Wall StShould Encore Capital Group (NASDAQ:ECPG) Be Disappointed With Their 29% Profit?
1 month ago | Simply Wall StDoes Encore Capital Group, Inc. (NASDAQ:ECPG) Have A Particularly Volatile Share Price?
Is Encore Capital Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ECPG ($34.3) is trading below our estimate of fair value ($57.1)
Significantly Below Fair Value: ECPG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ECPG is good value based on its PE Ratio (6.2x) compared to the Consumer Finance industry average (8.7x).
PE vs Market: ECPG is good value based on its PE Ratio (6.2x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: ECPG is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: ECPG is overvalued based on its PB Ratio (1.2x) compared to the US Consumer Finance industry average (1.1x).
How is Encore Capital Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ECPG's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).
Earnings vs Market: ECPG's earnings (11.7% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: ECPG's earnings are forecast to grow, but not significantly.
Revenue vs Market: ECPG's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: ECPG's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ECPG's Return on Equity is forecast to be low in 3 years time (18.2%).
How has Encore Capital Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ECPG has high quality earnings.
Growing Profit Margin: ECPG's current net profit margins (12.5%) are higher than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: ECPG's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: ECPG's earnings growth over the past year (110.7%) exceeds its 5-year average (9.5% per year).
Earnings vs Industry: ECPG earnings growth over the past year (110.7%) exceeded the Consumer Finance industry 11.4%.
Return on Equity
High ROE: ECPG's Return on Equity (18.6%) is considered low.
Return on Assets
Return on Capital Employed
How is Encore Capital Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: ECPG has a low level of unsold assets or inventory.
Debt Coverage by Assets: ECPG's debt is covered by short term assets (assets are 1x debt).
Financial Institutions Analysis
Asset Level: ECPG's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if ECPG has a sufficient allowance for bad loans.
Low Risk Liabilities: ECPG reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if ECPG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: ECPG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if ECPG has an appropriate level of bad loans.
What is Encore Capital Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ECPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ECPG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ECPG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ECPG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ECPG's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ashish Masih (53yo)
Mr. Ashish Masih has been the Chief Executive Officer and President of Encore Capital Group, Inc. since June 15, 2017. Mr. Masih served as President of Midland Credit Management at Encore Capital Group, In ...
CEO Compensation Analysis
Compensation vs Market: Ashish's total compensation ($USD2.80M) is about average for companies of similar size in the US market ($USD2.50M).
Compensation vs Earnings: Ashish's compensation has been consistent with company performance over the past year.
|Executive VP||5yrs||US$2.08m||0.21% $2.3m|
|Executive VP||2.6yrs||US$1.40m||0.17% $1.8m|
|Chief Information Officer||0.8yrs||no data||no data|
|Vice President of Investor Relations||0yrs||no data||no data|
|Senior Vice President of Business Development||0yrs||no data||no data|
|Senior VP & Chief Human Resources Officer||0.4yrs||no data||no data|
|Senior Vice President of Corporate & Government Affairs||7.5yrs||no data||no data|
|Executive VP & COO of Midland Credit Management||2.8yrs||no data||0.034% $364.9k|
|Senior VP and Group Executive for Latin America & Asia Pacific||4.6yrs||no data||no data|
Experienced Management: ECPG's management team is considered experienced (2.7 years average tenure).
|Independent Director||6yrs||US$235.66k||no data|
|Non-Executive Chairman||2.3yrs||US$333.16k||no data|
|Independent Director||8.2yrs||US$250.38k||0.0064% $70.0k|
|Independent Director||4.4yrs||US$231.66k||0.016% $174.9k|
|Independent Director||0.4yrs||no data||0.014% $153.0k|
|Independent Director||6yrs||US$209.99k||0.080% $871.1k|
|Independent Director||4.4yrs||US$228.99k||0.0080% $87.5k|
|Independent Director||8.4yrs||US$231.21k||0.00064% $7.0k|
|Independent Director||1.5yrs||US$192.25k||no data|
Experienced Board: ECPG's board of directors are considered experienced (4.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.5%.
Encore Capital Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Encore Capital Group, Inc.
- Ticker: ECPG
- Exchange: NasdaqGS
- Founded: 1999
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$1.086b
- Shares outstanding: 31.06m
- Website: https://www.encorecapital.com
Number of Employees
- Encore Capital Group, Inc.
- 3111 Camino Del Rio North
- Suite 103
- San Diego
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ECPG||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jul 1999|
Encore Capital Group, Inc., a specialty finance company, together with its subsidiaries, provides debt recovery solutions and other related services for consumers across a range of financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the early stage collections, business process outsourcing, contingent collections, and trace services and litigation activities; and the management of non-performing loans, as well as provides portfolio management services to banks for non-performing loans. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 00:31|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.