NasdaqGS:ECPG

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Undervalued with proven track record.


Similar Companies

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


Market Performance


7 Day Return

2.5%

ECPG

1.9%

US Consumer Finance

1.0%

US Market


1 Year Return

7.4%

ECPG

5.7%

US Consumer Finance

6.7%

US Market

Return vs Industry: ECPG exceeded the US Consumer Finance industry which returned 5.7% over the past year.

Return vs Market: ECPG exceeded the US Market which returned 6.7% over the past year.


Share holder returns

ECPGIndustryMarket
7 Day2.5%1.9%1.0%
30 Day-6.3%-5.3%-1.8%
90 Day-5.1%-7.6%-1.8%
1 Year7.4%7.4%7.5%5.7%9.1%6.7%
3 Year54.3%54.3%61.3%53.5%46.1%36.6%
5 Year-23.9%-23.9%42.1%31.7%66.9%48.6%

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

Valuation

Is Encore Capital Group undervalued based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ECPG ($32.25) is trading below our estimate of fair value ($42.98)

Significantly Undervalued: ECPG is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: ECPG is good value based on its PE Ratio (6.5x) compared to the Consumer Finance industry average (8x).

PE vs Market: ECPG is good value based on its PE Ratio (6.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ECPG is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: ECPG is good value based on its PB Ratio (1.1x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Encore Capital Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ECPG's forecast earnings growth (11.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ECPG's earnings (11.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ECPG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ECPG's revenue (5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ECPG's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ECPG's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

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

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ECPG's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: ECPG's earnings growth over the past year (72.7%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: ECPG earnings growth over the past year (72.7%) exceeded the Consumer Finance industry 25.5%.


Return on Equity

High ROE: ECPG's Return on Equity (16.1%) is considered low.


Return on Assets

ROA vs Industry: ECPG has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: ECPG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Balance Sheet

Inventory Level: ECPG has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECPG's debt is not 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.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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.


Next Steps

Management

What is the CEO of Encore Capital Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Ashish Masih (53yo)

2.3yrs

Tenure

US$2,795,067

Compensation

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: ECPG's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

67.5yo

Average Age

Experienced Board: ECPG's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$45,255,00021 Mar 19
J.C. Flowers & Co. LLC
EntityCompany
Shares1,500,000
Max PriceUS$30.17
BuyUS$303,25013 Nov 18
Ashish Masih
EntityIndividual
Role
Chief Executive Officer
President
Shares12,500
Max PriceUS$24.26
BuyUS$480,80013 Nov 18
Jonathan Clark
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares20,000
Max PriceUS$24.04

Ownership Breakdown


Management Team

  • Jon Clark (60yo)

    Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$2.08m
  • Bruce Thomas

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Sheryl Wright

    Senior Vice President of Corporate & Government Affairs

    • Tenure: 7.2yrs
  • Ashish Masih (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$2.80m
  • Greg Call (52yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$1.40m
  • Amy Anuk

    Senior Vice President of Business Development

    • Tenure: 0yrs
  • Ken Stannard (53yo)

    Chief Executive Officer of the Cabot Credit Management Group

    • Tenure: 1.2yrs
    • Compensation: US$3.51m
  • Ryan Bell (40yo)

    Executive VP & COO of Midland Credit Management

    • Tenure: 2.4yrs
  • Tracy Ting

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.08yrs
  • Monique Dumais

    Chief Information Officer

    • Tenure: 0.4yrs

Board Members

  • Laura Olle (66yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$235.66k
  • Mike Monaco (71yo)

    Non-Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: US$333.16k
  • Norman Raúl Sorensen Valdez (73yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$250.38k
  • Ash Gupta (66yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$231.66k
  • Angela Knight (69yo)

    Director

    • Tenure: 0.08yrs
  • Richard Srednicki (71yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$209.99k
  • Wendy Hannam (59yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$228.99k
  • Ashish Masih (53yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$2.80m
  • Francis Quinlan (70yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$231.21k
  • Rich Stovsky (61yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$192.25k

Company Information

Encore Capital Group, Inc.'s company bio, 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
  • Market Cap: US$1.002b
  • Shares outstanding: 31.06m
  • Website: https://www.encorecapital.com

Number of Employees


Location

  • Encore Capital Group, Inc.
  • 3111 Camino Del Rio North
  • Suite 103
  • San Diego
  • California
  • 92108
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECPGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1999

Biography

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 worldwi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:08
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)