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Encore Capital Group Inc

ECPG

Short-Term Business Credit Institutions

Mkt Cap

$1.189B

PE

-134.41

Debt

-

Cash

$144.7M

EV

-

FCF

$139.1M

Market Cap

$1.189B

P/E Ratio

-134.41

Debt

-

Cash

$144.7M

EV

-

FCF

$139.1M
Charts data: {"Earnings":[{"time":"2014-12-30","value":98278000},{"time":"2015-12-30","value":45135000},{"time":"2016-12-30","value":16817000},{"time":"2017-12-30","value":78978000},{"time":"2018-12-30","value":109736000},{"time":"2019-12-30","value":167869000},{"time":"2020-12-30","value":211848000},{"time":"2021-12-30","value":350782000},{"time":"2022-12-30","value":194564000}],"Sales":[{"time":"2014-12-30","value":1072789000},{"time":"2015-12-30","value":1161572000},{"time":"2016-12-30","value":1029258000},{"time":"2017-12-30","value":1187038000},{"time":"2018-12-30","value":1320557000},{"time":"2019-12-30","value":1405789000},{"time":"2020-12-30","value":1501400000},{"time":"2021-12-30","value":1614499000},{"time":"2022-12-30","value":1398347000}],"Net Margins":[{"time":"2014-12-30","value":0.09160981329972623},{"time":"2015-12-30","value":0.03885682506121015},{"time":"2016-12-30","value":0.0163389548587429},{"time":"2017-12-30","value":0.06653367457486618},{"time":"2018-12-30","value":0.08309826838220538},{"time":"2019-12-30","value":0.11941265723376694},{"time":"2020-12-30","value":0.14110030638071133},{"time":"2021-12-30","value":0.21726987752857077},{"time":"2022-12-30","value":0.1391385686099373}],"Assets":[{"time":"2014-12-30","value":3750135000},{"time":"2015-12-30","value":4219852000},{"time":"2016-12-30","value":3670497000},{"time":"2017-12-30","value":4490712000},{"time":"2018-12-30","value":4631875000},{"time":"2019-12-30","value":4909950000},{"time":"2020-12-30","value":4864523000},{"time":"2021-12-30","value":4608125000},{"time":"2022-12-30","value":4508360000}],"Stockholders Equity":[{"time":"2014-12-30","value":626981000},{"time":"2015-12-30","value":603738000},{"time":"2016-12-30","value":559304000},{"time":"2017-12-30","value":581862000},{"time":"2018-12-30","value":819688000},{"time":"2019-12-30","value":1025406000},{"time":"2020-12-30","value":1220076000},{"time":"2021-12-30","value":1185261000},{"time":"2022-12-30","value":1179627000}],"ROE":[{"time":"2014-12-30","value":0.15674797162912432},{"time":"2015-12-30","value":0.07475924987328941},{"time":"2016-12-30","value":0.03006772703216855},{"time":"2017-12-30","value":0.13573321509223837},{"time":"2018-12-30","value":0.13387532817364656},{"time":"2019-12-30","value":0.16370978909817185},{"time":"2020-12-30","value":0.1736350850274901},{"time":"2021-12-30","value":0.2959533807321763},{"time":"2022-12-30","value":0.16493688259085287}],"ROA":[{"time":"2014-12-30","value":0.08521213236323492},{"time":"2015-12-30","value":0.05866011414618333},{"time":"2016-12-30","value":0.06967503310859538},{"time":"2017-12-30","value":0.07468459344531557},{"time":"2018-12-30","value":0.08750236135474294},{"time":"2019-12-30","value":0.09090622104094746},{"time":"2020-12-30","value":0.10968434109572511},{"time":"2021-12-30","value":0.13742509155025093},{"time":"2022-12-30","value":0.1025148834609481}]}

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. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.

Sector

    Growth

    %

    %

    Discount

    %

    %

    Multiple

    g\r+10%+11%+12%+13%+14%
    0%109887
    +1%1110988
    +2%13111098
    +3%141311109
    +4%1714121110
    Years012345678910TV
    FCF$139.1M$159.6M$181.5M$204.3M$227.9M$251.6M$275.1M$297.8M$319.2M$338.6M$355.5M$3.555B
    DCF$138.8M$137.2M$134.4M$130.3M$125.1M$118.9M$112M$104.3M$96.25M$87.88M$878.8M
    Value$2.064B

    In the chart Earnings are multiplied by this value.

    Earnings Growth 21%
    Earnings Stability 11%


    Competitiveness and MOAT

    High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

    Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
    Net Margin9.2%3.9%1.6%6.7%8.3%12%14%22%14%-0.75%
    ROA8.5%5.9%7%7.5%8.8%9.1%11%14%10%4.9%
    ROE16%7.5%3%14%13%16%17%30%16%-0.74%

    What is the average Net Margin?

    The average Net Margin over the past 5 years is +12.78%.

    What is the trend of Net Margin?

    The trend of Net Margin over the past 5 years is +2.25%.

    What is the average Return on Assets (ROA)?

    The average ROA over the past 5 years is +10.05%.

    What is the trend of Return on Assets (ROA)?

    The trend of ROA over the past 5 years is +0.88%.

    What is the average Return on Equity (ROE)?

    The average ROE over the past 5 years is +17.8%.

    What is the trend of Return on Equity (ROE)?

    The trend of ROE over the past 5 years is +1.83%.


    Safety & Stabiliy

    Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

    Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
    Debt FCF-37.4029.0336.8629.9717.4812.1211.3316.96-
    Debt Equity4.405.315.126.064.363.502.762.582.49-
    MIN
    Graham Stability---100%100%100%100%100%80%80%

    What is the Debt/FCF?

    The Debt/FCF trailing twelve month is -.

    What is the trend of Debt/FCF?

    The trend of Debt/FCF over the past 5 years is -4.59.

    What is the Graham’s Stability?

    Graham’s Stability measure stands at 0.80.


    Growth

    Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

    Years12-201512-201712-201912-2021Trend
    Revenue2.7%3.3%-0.18%-13%-1%
    Net Income23%20%5%-45%-3.7%
    Stockholders Equity10%15%4.8%-0.48%0.88%
    FCF11%13%-5.4%-36%-1.9%

    What is the 5 year Revenue CAGR?

    The Revenue CAGR over the past 5 years is +3.33%.

    What is the trend of Revenue growth?

    The trend of Revenue growth rate over the past 5 years is -1.04%.

    What is the 5 year Earnings CAGR?

    The Earnings CAGR over the past 5 years is +19.76%.

    What is the trend of Earnings growth?

    The trend of Earnings growth rate over the past 5 years is -3.67%.

    What is the 5 year Equity CAGR?

    The Equity CAGR over the past 5 years is +15.18%.

    What is the trend of Equity growth?

    The trend of Equity growth rate over the past 5 years is +0.88%.

    What is the 5 year FCF CAGR?

    The FCF CAGR over the past 5 years is +12.63%.

    What is the trend of FCF growth?

    The trend of FCF growth rate over the past 5 years is -1.87%.