ECPG

Encore Capital Group, Inc.

Fundamental data last updated:September 3, 2026

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company profile

SECTOR

Financial Services

industry

Financial - Mortgages

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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. The company was incorporated in 1999 and is headquartered in San Diego, California.

 


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VALUATION

P/E

5.89

Market Cap ($M USD)

$1.72B

Forward P/E

6.01

PEG

-2.90

PRICE TO SALES

0.93

PRICE TO BOOK

1.69

EV / EBITDA

7.84

5-Year Average P/E

Free Cash Flow Yield

9.65%

DCF Value

$146.51

Graham Number

$120.88

Price to FCF

10.36

EV to FCF

33.28

Earnings Yield

16.98%

FCF Yield

9.65%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$13.64

Next Year EPS Growth Estimate

$13.35

Next Year Revenue Growth Estimate

$1.87B

Return on Equity (ROE)

30.70%

FREE CASH FLOW

Operating Margin

36.79%

Debt-to-Equity

4.23

Piotroski F-Score

6

Altman Z-Score

1.15

Return on Invested Capital (ROIC)

15.06%

Current Ratio

0.33

Quick Ratio

0.33

Net Debt to EBITDA

5.40

Interest Coverage

2.37

Gross Profit margin

73.15%

FCF PER SHARE

$7.64

REVENUE PER SHARE

$85.10

Analyze ECPG on TradingView

Gainseekers Quantitative Analysis

Summary

ECPG’s valuation paints a compelling picture for value investors. The stock has traded below its DCF Value and Graham Number, suggesting a market mispricing. With a Forward P/E of 6.28 and an Earnings Yield of 16.26%, the company appears undervalued relative to its earnings potential. However, the Altman Z-score of 2.32 indicates moderate financial distress, hinting at potential risks. Despite these concerns, the market seems to have overlooked its robust earnings power.

AI Exposure / Tech Reliance

Operating in the Financial Services sector, ECPG is well-positioned to leverage AI and tech advancements. As a player in the Financial - Mortgages industry, integrating AI could enhance risk assessment and customer service. This adaptability is crucial for maintaining competitiveness in a rapidly evolving market.

The Bull Case

For GARP investors, ECPG offers an enticing proposition. The company boasts a strong ROIC of 12.48%, indicating efficient capital use. Its FCF Yield of 9.24% and a Piotroski F-Score of 5 suggest solid financial health and operational efficiency. With an Operating Margin of 36.79%, ECPG demonstrates significant pricing power, making it an attractive buy for those seeking value and growth.

The Bear Case

Despite its strengths, ECPG faces notable risks. The Debt/Equity ratio of 4.23 is alarmingly high, raising concerns about leverage and financial stability. Trading near its 52-week high, the stock may be technically overextended. Additionally, the Price/Book ratio of 1.76 suggests it might not be as cheap as it appears, potentially limiting upside for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$85.00

Institutional Ownership %

1-Year Beta

1.33

Insider Buying % (6 Mo)

Distance to 52-Week High

15.37%

Distance to 52-Week Low

55.58%

EARNINGS SURPRISE %

18.40%

50-DAY SMA

$78.20

200-DAY SMA

$57.75

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.