(ECPG) Encore Capital - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NASDAQ (USA) | Market Cap: 1.729m USD | Total Return: 105.4% in 12m
Avg Turnover: 26.3M
Qual. Beats: 0
Rev. Trend: 94.9%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Rs(ibd) Leader, Idiosyncratic Leader
Encore Capital Group, Inc. (ECPG) is a global specialty finance firm focused on debt recovery and portfolio management. The company acquires defaulted consumer receivables from credit originators at significant discounts and manages the collection process through repayment plans and debt servicing solutions. Its operations include business process outsourcing and contingent collections for non-performing loans.
The debt purchasing industry relies heavily on the cost-to-collect ratio, as profitability depends on the ability to recover more than the acquisition price and operational overhead. Regulatory environments, such as those overseen by the Consumer Financial Protection Bureau (CFPB) in the U.S., play a critical role in determining how these firms interact with debtors.
To better understand the internal valuation metrics of this sector, consider reviewing the detailed financial breakdowns available on ValueRay.
- Supply of non-performing loans from financial institutions dictates portfolio acquisition volume
- Cost of borrowing and leverage ratios impact net interest margin profitability
- Consumer disposable income levels determine success rates of debt recovery collections
- Regulatory changes in global debt collection practices influence operational compliance costs
- Portfolio purchase price multiples directly affect long-term internal rates of return
| Net Income: 296.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.61 > 1.0 |
| NWC/Revenue: 201.8% < 20% (prev -66.06%; Δ 267.9% < -1%) |
| CFO/TA 0.03 > 3% & CFO 190.2m > Net Income 296.3m |
| Net Debt (3.81b) to EBITDA (704.7m): 5.40 < 3 |
| Current Ratio: 5.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (22.3m) vs 12m ago -8.03% < -2% |
| Gross Margin: 73.15% > 18% (prev 0.56%; Δ 7.26k% > 0.5%) |
| Asset Turnover: 35.49% > 50% (prev 27.78%; Δ 7.70% > 0%) |
| Interest Coverage Ratio: 2.36 > 6 (EBITDA TTM 704.7m / Interest Expense TTM 286.8m) |
| A: 0.68 (Total Current Assets 4.66b - Total Current Liabilities 933.5m) / Total Assets 5.45b |
| B: 0.21 (Retained Earnings 1.17b / Total Assets 5.45b) |
| C: 0.13 (EBIT TTM 676.5m / Avg Total Assets 5.21b) |
| D: 0.23 (Book Value of Equity 1.03b / Total Liabilities 4.42b) |
| Altman-Z'' = 6.31 = AAA |
| DSRI: 0.84 (Receivables 4.44b/3.95b, Revenue 1.85b/1.38b) |
| GMI: 0.77 (GM 73.15% / 56.15%) |
| AQI: 0.14 (AQ_t 0.13 / AQ_t-1 0.92) |
| SGI: 1.34 (Revenue 1.85b / 1.38b) |
| TATA: 0.02 (NI 296.3m - CFO 190.2m) / TA 5.45b) |
| Beneish M = -3.62 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 80.20 with a total of 191,500 shares traded.
Over the past week, the price has changed by -1.74%,
over one month by -4.86%,
over three months by +35.54% and
over the past year by +105.43%.
Encore Capital has received a consensus analysts rating of 4.40. Therefore, it is recommended to buy ECPG.
- StrongBuy: 3
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 104.3 | 30.1% |
P/E Trailing = 6.2804
P/E Forward = 5.5432
P/S = 0.9446
P/B = 1.6698
P/EG = 0.1692
Revenue TTM = 1.85b USD
EBIT TTM = 676.5m USD
EBITDA TTM = 704.7m USD
Long Term Debt = 3.35b USD (from longTermDebt, last quarter)
Short Term Debt = 681.3m USD (from shortLongTermDebt, last quarter)
Debt = 4.03b USD (from shortLongTermDebtTotal, last quarter) + Leases 515k
Net Debt = 3.81b USD (calculated: Debt 4.03b - CCE 227.2m)
Enterprise Value = 5.54b USD (1.73b + Debt 4.03b - CCE 227.2m)
Interest Coverage Ratio = 2.36 (Ebit TTM 676.5m / Interest Expense TTM 286.8m)
EV/FCF = 33.33x (Enterprise Value 5.54b / FCF TTM 166.1m)
FCF Yield = 3.00% (FCF TTM 166.1m / Enterprise Value 5.54b)
FCF Margin = 8.98% (FCF TTM 166.1m / Revenue TTM 1.85b)
Net Margin = 16.02% (Net Income TTM 296.3m / Revenue TTM 1.85b)
Gross Margin = 73.15% ((Revenue TTM 1.85b - Cost of Revenue TTM 496.4m) / Revenue TTM)
Gross Margin QoQ = 69.53% (prev 93.49%)
Tobins Q-Ratio = 1.02 (Enterprise Value 5.54b / Total Assets 5.45b)
Interest Expense / Debt = 7.11% (Interest Expense 286.8m / Debt 4.03b)
Taxrate = 22.81% (25.5m / 111.7m)
NOPAT = 522.1m (EBIT 676.5m * (1 - 22.81%))
Current Ratio = 5.00 (Total Current Assets 4.66b / Total Current Liabilities 933.5m)
Debt / Equity = 3.90 (Debt 4.03b / totalStockholderEquity, last quarter 1.03b)
Debt / EBITDA = 5.40 (Net Debt 3.81b / EBITDA 704.7m)
Debt / FCF = 22.92 (Net Debt 3.81b / FCF TTM 166.1m)
Total Stockholder Equity = 965.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.69% (Net Income 296.3m / Total Assets 5.45b)
RoE = 30.70% (Net Income TTM 296.3m / Total Stockholder Equity 965.1m)
RoCE = 15.67% (EBIT 676.5m / Capital Employed (Equity 965.1m + L.T.Debt 3.35b))
RoIC = 11.62% (NOPAT 522.1m / Invested Capital 4.49b)
WACC = 7.22% (E(1.73b)/V(5.76b) * Re(11.27%) + D(4.03b)/V(5.76b) * Rd(7.11%) * (1-Tc(0.23)))
Discount Rate = 11.27% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -64.44 | Cagr: -2.71%
[DCF] Terminal Value 77.97% ; FCFF base≈148.1m ; Y1≈169.8m ; Y5≈249.9m
[DCF] Fair Price = N/A (negative equity: EV 3.76b - Net Debt 3.81b = -46.3m; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.71 | # QB: 0
Revenue Correlation: 94.88 | Revenue CAGR: 17.30% | SUE: 0.49 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.57 | Chg30d=-4.81% | Revisions=+33% | Analysts=1
EPS next Quarter (2026-09-30): EPS=2.98 | Chg30d=-3.09% | Revisions=+33% | Analysts=1
EPS current Year (2026-12-31): EPS=13.00 | Chg30d=+7.73% | Revisions=+33% | GrowthEPS=+19.2% | GrowthRev=+4.6%
EPS next Year (2027-12-31): EPS=13.23 | Chg30d=+2.92% | Revisions=+33% | GrowthEPS=+1.7% | GrowthRev=+1.1%
[Analyst] Revisions Ratio: +33%