A Business at a Glance
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ENCORE CAPITAL GROUP INC
ECPG
$2.1B
Mkt Cap
$90.15
+5.28%
ENCORE CAPITAL GROUP INC (ECPG) has a current P/E ratio of 8.3, compared to its historical median P/E of 6.0. The stock is currently considered Fair based on its historical valuation range.
ENCORE CAPITAL GROUP INC (ECPG) has a 5-year average return on invested capital (ROIC) of 2.0%. This is below average and may indicate limited pricing power.
ENCORE CAPITAL GROUP INC (ECPG) has a market capitalization of $1.9B. It is classified as a small-cap stock.
ENCORE CAPITAL GROUP INC (ECPG) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 5.18%.
Based on historical P/E analysis, ENCORE CAPITAL GROUP INC (ECPG) appears fair. The current P/E of 8.3 is 37% above its historical median of 6.0. The estimated fair value CAGR (P/E method) is -18.5%.
ENCORE CAPITAL GROUP INC (ECPG) operates in the Short-Term Business Credit Institutions industry, within the Financials sector.
ENCORE CAPITAL GROUP INC (ECPG) reported annual revenue of $1.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Our Business We are an international specialty finance company providing debt recovery solutions and other related services for consumers across a broad range of financial assets. We primarily purchase portfolios of defaulted consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial obligations to credit originators, including banks, credit unions, consumer finance companies and commercial retailers. Defaulted receivables may also include receivables subject to bankruptcy proceedings. We also provide debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. Through Midland Credit Management, Inc. and its domestic affiliates (collectively, “MCM”) we are a market leader in portfolio purchasing and recovery in the United States.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.9B | 1.8B | 1.3B | 1.2B | 1.4B | 1.6B |
| Net Income | 296M | 257M | -139M | -206M | 195M | 351M |
| EPS | $13.36 | $10.91 | $-5.83 | $-8.72 | $7.46 | $11.26 |
| Free Cash Flow | 166M | 127M | 127M | 128M | 173M | 270M |
| ROIC | 10.8% | 5.4% | -3.2% | -4.9% | 4.7% | 7.9% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 3.90 | 4.13 | 4.83 | 3.59 | 2.49 | 2.58 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 681M | 627M | 157M | 17M | 462M | 633M |
| Operating Margin | 36.8% | 35.4% | 12.0% | 1.4% | 33.1% | 39.2% |
| ROE | 28.6% | 29.5% | -16.3% | -19.5% | 16.5% | 29.2% |
| Shares Outstanding | 21M | 24M | 24M | 24M | 26M | 31M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.0B | 1.1B | 1.1B | 1.1B | 1.3B | 1.4B | 1.5B | 1.6B | 1.4B | 1.2B | 1.3B | 1.8B | 1.9B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 140M | 191M | 134M | 158M | 158M | 148M | 149M | 138M | 146M | 145M | 164M | 166M | 165M |
| EBIT | 308M | 282M | 242M | 325M | 405M | 446M | 534M | 633M | 462M | 17M | 157M | 627M | 681M |
| Op. Margin | 29.6% | 25.0% | 21.7% | 28.3% | 30.7% | 31.8% | 35.5% | 39.2% | 33.1% | 1.4% | 12.0% | 35.4% | 36.8% |
| Net Income | 104M | 45M | 77M | 83M | 116M | 168M | 212M | 351M | 195M | -206M | -139M | 257M | 296M |
| Net Margin | 9.9% | 4.0% | 6.9% | 7.3% | 8.8% | 11.9% | 14.1% | 21.7% | 13.9% | -16.9% | -10.6% | 14.5% | 16.0% |
| Non-Recurring | 0 | 49M | 0 | 0 | 12M | 11M | 0 | 0 | 0 | 238M | 101M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 3.6% | 1.3% | 2.1% | 2.2% | 2.7% | 3.7% | 4.6% | 7.9% | 4.7% | -4.9% | -3.2% | 5.4% | 10.8% |
| ROE | 17.4% | 7.4% | 13.3% | 14.6% | 16.6% | 18.2% | 18.9% | 29.2% | 16.5% | -19.5% | -16.3% | 29.5% | 28.6% |
| ROA | 3.2% | 1.1% | 2.0% | 2.0% | 2.5% | 3.5% | 4.3% | 7.4% | 4.3% | -4.5% | -3.0% | 5.1% | 5.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 112M | 116M | 130M | 124M | 187M | 245M | 313M | 303M | 211M | 153M | 156M | 153M | 190M |
| Free Cash Flow | 88M | 88M | 99M | 96M | 119M | 205M | 278M | 270M | 173M | 128M | 127M | 127M | 166M |
| Owner Earnings | 67M | 61M | 83M | 73M | 133M | 191M | 254M | 235M | 149M | 97M | 110M | 106M | 143M |
| CapEx | 23M | 29M | 32M | 28M | 67M | 40M | 35M | 33M | 37M | 25M | 29M | 26M | 24M |
| Maint. CapEx | 27M | 33M | 35M | 40M | 41M | 41M | 43M | 50M | 46M | 42M | 32M | 29M | 28M |
| Growth CapEx | 0 | 0 | 0 | 0 | 26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 27M | 33M | 35M | 40M | 41M | 41M | 43M | 50M | 46M | 42M | 32M | 29M | 28M |
| CapEx/OCF | 20.8% | 25.0% | 24.3% | 22.7% | 36.1% | 16.2% | 11.1% | 11.0% | 17.7% | 16.2% | 18.6% | 17.1% | 12.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 17M | 33M | 0 | 0 | 0 | 0 | 0 | 391M | 87M | 0 | 0 | 90M | 100M |
| Buyback Yield | 1.4% | 4.1% | N/A | N/A | N/A | N/A | N/A | 20.7% | 7.2% | N/A | N/A | 6.9% | 5.2% |
| Stock-Based Comp | 17M | 22M | 13M | 10M | 13M | 13M | 17M | 18M | 15M | 14M | 14M | 18M | 19M |
| Debt Repayment | 1.2B | 0 | 0 | 125M | 12M | 85M | 50M | 161M | 221M | 212M | 0 | 106M | 106M |
| Balance Sheet | |||||||||||||
| Net Debt | 3.2B | 3.7B | 2.7B | 3.3B | 3.4B | 3.4B | 3.2B | 2.9B | 2.8B | 3.2B | 3.5B | 3.9B | 3.8B |
| Cash & Equiv. | 92M | 124M | 150M | 212M | 157M | 192M | 189M | 190M | 144M | 158M | 200M | 157M | 227M |
| Long-Term Debt | 2.8B | 3.2B | 2.9B | 3.5B | 3.6B | 3.6B | 3.4B | 3.1B | 2.9B | 3.4B | 3.7B | 4.0B | 4.0B |
| Debt/Equity | 5.24 | 6.43 | 5.12 | 6.06 | 4.37 | 3.51 | 2.77 | 2.58 | 2.49 | 3.59 | 4.83 | 4.13 | 3.90 |
| Interest Coverage | 1.8 | 1.5 | 1.2 | 1.6 | 1.7 | 2.0 | 2.5 | 3.7 | 3.0 | 0.1 | 0.6 | 2.1 | 264.9 |
| Equity | 623M | 596M | 559M | 582M | 818M | 1.0B | 1.2B | 1.2B | 1.2B | 937M | 767M | 977M | 1.0B |
| Total Assets | 3.8B | 4.2B | 3.7B | 4.5B | 4.6B | 4.9B | 4.9B | 4.6B | 4.5B | 4.6B | 4.8B | 5.3B | 5.5B |
| Total Liabilities | 3.1B | 3.5B | 3.1B | 3.8B | 3.8B | 3.9B | 3.6B | 3.4B | 3.3B | 3.7B | 4.0B | 4.4B | 4.4B |
| Intangibles | 22M | 16M | 28M | 76M | 61M | 51M | 45M | 36M | 22M | 48K | 0 | N/A | N/A |
| Retained Earnings | 498M | 543M | 561M | 616M | 720M | 888M | 1.1B | 1.2B | 1.3B | 1.0B | 910M | 1.1B | 1.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 3.77 | 1.69 | 2.96 | 3.15 | 4.06 | 5.33 | 6.68 | 11.26 | 7.46 | -8.72 | -5.83 | 10.91 | 13.36 |
| Owner EPS | 2.44 | 2.28 | 3.20 | 2.78 | 4.64 | 6.07 | 7.99 | 7.53 | 5.71 | 4.11 | 4.59 | 4.51 | 6.63 |
| Book Value | 22.64 | 22.33 | 21.62 | 22.02 | 28.66 | 32.46 | 38.39 | 38.05 | 45.23 | 39.55 | 32.13 | 41.49 | 48.13 |
| Cash Flow/Share | 4.05 | 4.35 | 5.04 | 4.69 | 6.54 | 7.77 | 9.87 | 9.73 | 8.08 | 6.46 | 6.54 | 6.51 | 15.10 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 27.5M | 26.7M | 25.9M | 26.4M | 28.5M | 31.5M | 31.7M | 31.2M | 26.1M | 23.7M | 23.9M | 23.5M | 21.5M |
| Valuation | |||||||||||||
| P/E Ratio | 11.7 | 17.9 | 9.6 | 13.5 | 5.8 | 6.7 | 5.6 | 5.4 | 6.2 | N/A | N/A | 5.1 | 6.8 |
| P/FCF | 13.7 | 9.2 | 7.5 | 11.8 | 5.7 | 5.5 | 4.2 | 7.0 | 7.0 | 9.5 | 8.9 | 10.3 | 11.7 |
| EV/EBIT | 11.7 | 12.4 | 13.4 | 12.8 | 9.5 | 9.5 | N/A | 7.1 | 8.3 | 255.5 | 28.0 | 8.0 | 8.4 |
| Price/Book | 1.9 | 1.4 | 1.3 | 1.9 | 0.8 | 1.1 | 1.0 | 1.6 | 1.0 | 1.3 | 1.5 | 1.3 | 1.9 |
| Price/Sales | 1.2 | 0.9 | 0.6 | 0.9 | 0.8 | 0.7 | 0.7 | 0.9 | 1.1 | 0.9 | 0.8 | 0.6 | 1.0 |
| FCF Yield | 7.3% | 10.8% | 13.4% | 8.5% | 17.6% | 18.1% | 23.5% | 14.3% | 14.3% | 10.5% | 11.2% | 9.7% | 8.6% |
| Market Cap | 1.2B | 809M | 737M | 1.1B | 676M | 1.1B | 1.2B | 1.9B | 1.2B | 1.2B | 1.1B | 1.3B | 1.9B |
| Avg. Price | 44.95 | 39.61 | 23.98 | 38.29 | 37.47 | 33.05 | 34.92 | 45.52 | 57.63 | 48.80 | 46.83 | 42.20 | 90.15 |
| Year-End Price | 44.00 | 30.29 | 28.50 | 42.60 | 23.70 | 35.96 | 37.29 | 60.54 | 46.59 | 51.64 | 47.52 | 55.52 | 90.15 |
ENCORE CAPITAL GROUP INC passes 2 of 9 quality checks, indicating weak fundamentals.
ENCORE CAPITAL GROUP INC trades at 8.3x trailing earnings, compared to its 15-year median P/E of 6.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 15.2x vs a median of 7.2x. The company's 5-year average ROIC is 2.0%. Total shareholder yield (buybacks) is 5.2%. At current prices, the estimated annualized return to fair value is -2.3%.
ENCORE CAPITAL GROUP INC (ECPG) has a net profit margin of 14.5%. This is a healthy margin.
ENCORE CAPITAL GROUP INC (ECPG) generated $127 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ENCORE CAPITAL GROUP INC (ECPG) has a debt-to-equity ratio of 4.13. This indicates higher leverage, which may increase financial risk.
ENCORE CAPITAL GROUP INC (ECPG) reported earnings per share (EPS) of $10.91 in its most recent fiscal year.
ENCORE CAPITAL GROUP INC (ECPG) has a return on equity (ROE) of 29.5%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 16 years of financial data for ENCORE CAPITAL GROUP INC (ECPG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ENCORE CAPITAL GROUP INC (ECPG) has a book value per share of $41.49, based on its most recent annual SEC filing.