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ECPG

Encore Capital Group NasdaqGS:ECPG Stock Report

Last Price

US$60.21

Market Cap

US$1.5b

7D

3.3%

1Y

28.2%

Updated

05 Jul, 2022

Data

Company Financials +
ECPG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends0/6

ECPG Stock Overview

Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide.

Encore Capital Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Encore Capital Group
Historical stock prices
Current Share PriceUS$60.21
52 Week HighUS$72.67
52 Week LowUS$43.24
Beta1.28
1 Month Change-0.25%
3 Month Change-1.51%
1 Year Change28.24%
3 Year Change75.39%
5 Year Change49.40%
Change since IPO544.39%

Recent News & Updates

Jun 12
Is Now The Time To Put Encore Capital Group (NASDAQ:ECPG) On Your Watchlist?

Is Now The Time To Put Encore Capital Group (NASDAQ:ECPG) On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

ECPGUS Consumer FinanceUS Market
7D3.3%-0.7%0.3%
1Y28.2%-29.5%-18.4%

Return vs Industry: ECPG exceeded the US Consumer Finance industry which returned -30.3% over the past year.

Return vs Market: ECPG exceeded the US Market which returned -19.1% over the past year.

Price Volatility

Is ECPG's price volatile compared to industry and market?
ECPG volatility
ECPG Average Weekly Movement3.6%
Consumer Finance Industry Average Movement9.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

Stable Share Price: ECPG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ECPG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19996,604Ashish Masihhttps://www.encorecapital.com

Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across 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 provision of early stage collection, business process outsourcing, and contingent collection services, as well as debt servicing and other portfolio management services to credit originator for non-performing loans.

Encore Capital Group Fundamentals Summary

How do Encore Capital Group's earnings and revenue compare to its market cap?
ECPG fundamental statistics
Market CapUS$1.46b
Earnings (TTM)US$431.90m
Revenue (TTM)US$1.70b

3.4x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ECPG income statement (TTM)
RevenueUS$1.70b
Cost of RevenueUS$0
Gross ProfitUS$1.70b
Other ExpensesUS$1.27b
EarningsUS$431.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)17.80
Gross Margin100.00%
Net Profit Margin25.45%
Debt/Equity Ratio236.5%

How did ECPG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ECPG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ECPG?

Other financial metrics that can be useful for relative valuation.

ECPG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA5.4x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does ECPG's PE Ratio compare to its peers?

ECPG PE Ratio vs Peers
The above table shows the PE ratio for ECPG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10x
GDOT Green Dot
23.5x31.8%US$1.4b
PRAA PRA Group
9.2x-6.7%US$1.5b
FINV FinVolution Group
3.7x5.9%US$1.4b
NAVI Navient
3.6x-21.9%US$2.2b
ECPG Encore Capital Group
3.4x-29.0%US$1.5b

Price-To-Earnings vs Peers: ECPG is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (10x).


Price to Earnings Ratio vs Industry

How does ECPG's PE Ratio compare vs other companies in the US Consumer Finance Industry?

Price-To-Earnings vs Industry: ECPG is good value based on its Price-To-Earnings Ratio (3.4x) compared to the US Consumer Finance industry average (5.6x)


Price to Earnings Ratio vs Fair Ratio

What is ECPG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ECPG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.4x
Fair PE Ratio6.8x

Price-To-Earnings vs Fair Ratio: ECPG is good value based on its Price-To-Earnings Ratio (3.4x) compared to the estimated Fair Price-To-Earnings Ratio (6.8x).


Share Price vs Fair Value

What is the Fair Price of ECPG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ECPG ($60.21) is trading below our estimate of fair value ($83.57)

Significantly Below Fair Value: ECPG is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: ECPG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Encore Capital Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-29.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECPG's earnings are forecast to decline over the next 3 years (-29% per year).

Earnings vs Market: ECPG's earnings are forecast to decline over the next 3 years (-29% per year).

High Growth Earnings: ECPG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ECPG's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: ECPG's revenue is forecast to decline over the next 3 years (-9.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ECPG's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Encore Capital Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


35.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ECPG has high quality earnings.

Growing Profit Margin: ECPG's current net profit margins (25.4%) are higher than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: ECPG's earnings have grown significantly by 35.2% per year over the past 5 years.

Accelerating Growth: ECPG's earnings growth over the past year (36.3%) exceeds its 5-year average (35.2% per year).

Earnings vs Industry: ECPG earnings growth over the past year (36.3%) exceeded the Consumer Finance industry 17.4%.


Return on Equity

High ROE: Whilst ECPG's Return on Equity (34.68%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Encore Capital Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ECPG's short term assets ($3.4B) exceed its short term liabilities ($251.6M).

Long Term Liabilities: ECPG's short term assets ($3.4B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: ECPG's net debt to equity ratio (222.6%) is considered high.

Reducing Debt: ECPG's debt to equity ratio has reduced from 448.4% to 236.5% over the past 5 years.

Debt Coverage: ECPG's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: ECPG's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


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Dividend

What is Encore Capital Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ECPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ECPG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ECPG has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Ashish Masih (56 yo)

5.08yrs

Tenure

US$4,600,775

Compensation

Mr. Ashish Masih has been the Chief Executive Officer and President of Encore Capital Group, Inc. since June 15, 2017. Mr. Masih serves as a Director at Encore Capital Europe Finance Limited. Mr. Masih ser...


CEO Compensation Analysis

Compensation vs Market: Ashish's total compensation ($USD4.60M) is about average for companies of similar size in the US market ($USD5.53M).

Compensation vs Earnings: Ashish's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ECPG's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ECPG's board of directors are considered experienced (6 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Encore Capital Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Encore Capital Group, Inc.
  • Ticker: ECPG
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.461b
  • Shares outstanding: 24.26m
  • Website: https://www.encorecapital.com

Number of Employees


Location

  • Encore Capital Group, Inc.
  • 350 Camino De La Reina
  • Suite 100
  • San Diego
  • California
  • 92108
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.