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

Good value 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

-0.4%

NasdaqGS:ECPG

1.3%

US Consumer Finance

2.9%

US Market


1 Year Return

-9.5%

NasdaqGS:ECPG

2.4%

US Consumer Finance

0.2%

US Market

ECPG underperformed the Consumer Finance industry which returned 1.7% over the past year.

ECPG underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

ECPGIndustryMarket
7 Day-0.4%1.3%2.9%
30 Day6.2%-4.4%-2.3%
90 Day1.4%0.2%3.1%
1 Year-9.5%-9.5%4.1%2.4%2.4%0.2%
3 Year70.2%70.2%61.6%54.0%41.7%32.4%
5 Year-18.1%-18.1%38.9%28.9%55.1%37.9%

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?

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Encore Capital Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Encore Capital Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Encore Capital Group is good value based on earnings compared to the US Consumer Finance industry average.

Encore Capital Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Encore Capital Group is good value based on expected growth next year.


Price Based on Value of Assets

Encore Capital Group is good value based on assets compared to the US Consumer Finance industry average.


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

Encore Capital Group's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Encore Capital Group's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

Encore Capital Group's revenue growth is positive but not above the United States of America market average.

Encore Capital Group's earnings growth is positive but not above the United States of America market average.

Encore Capital Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Encore Capital Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Encore Capital Group's year on year earnings growth rate has been positive over the past 5 years.

Encore Capital Group's 1-year earnings growth exceeds its 5-year average (72.7% vs 5.3%)

Encore Capital Group's earnings growth has exceeded the US Consumer Finance industry average in the past year (72.7% vs 30.9%).


Return on Equity

Encore Capital Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Encore Capital Group used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Encore Capital Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Encore Capital Group's financial position?


Financial Position Analysis

Encore Capital Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Encore Capital Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Encore Capital Group's level of debt (391.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (447.9% vs 391.2% today).

Debt is not well covered by operating cash flow (5.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Encore Capital Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Encore Capital Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Encore Capital Group has not reported any payouts.

Unable to verify if Encore Capital Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Encore Capital Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

2.1yrs

Average management tenure


CEO

Ashish Masih (53yo)

2.2yrs

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

Ashish's remuneration is about average for companies of similar size in United States of America.

Ashish's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

The tenure for the Encore Capital Group management team is about average.


Board Age and Tenure

3.9yrs

Average Tenure

66yo

Average Age

The tenure for the Encore Capital Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 4.5yrs
    • Compensation: US$2.08m
  • Bruce Thomas

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Ashish Masih (53yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$2.80m
  • Greg Call (52yo)

    Executive VP

    • Tenure: 2.1yrs
    • Compensation: US$1.40m
  • Amy Anuk

    Senior Vice President of Business Development

    • Tenure: 0.0yrs
  • Ken Stannard (53yo)

    Chief Executive Officer of the Cabot Credit Management Group

    • Tenure: 1.0yrs
    • Compensation: US$3.51m
  • John Yung

    Senior VP and Group Executive for Latin America & Asia Pacific

    • Tenure: 4.1yrs
  • Ryan Bell (40yo)

    Executive VP & COO of Midland Credit Management

    • Tenure: 2.3yrs
  • Doris Hektor

    Managing VP & Chief Risk Officer

    • Tenure: 0.3yrs
  • Monique Dumais

    Chief Information Officer

    • Tenure: 0.3yrs

Board Members

  • Laura Olle (66yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$235.66k
  • Mike Monaco (71yo)

    Non-Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: US$333.16k
  • Norman Raúl Sorensen Valdez (73yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$250.38k
  • Ash Gupta (66yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$231.66k
  • Richard Srednicki (71yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$209.99k
  • Wendy Hannam (59yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$228.99k
  • Ashish Masih (53yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$2.80m
  • Francis Quinlan (70yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$231.21k
  • Rich Stovsky (61yo)

    Director

    • Tenure: 1.0yrs
    • 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$1.127b
  • 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 Analysis2019/08/21 23:35
End of Day Share Price2019/08/21 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.