Encore Capital Group Inc

Finance
Finance Companies
www.encorecapital.com

Earnings Score
Moat Score

Market Cap $1.17B
PE -6
Debt $NaN
Cash $247.35M
EV $NaN
FCF $140.91M

Earnings

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Sales & Net Margins

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Earnings	-$184.70M
EBIT	$74.33M
ROE	-18%
ROA	1%
FCF	$140.91M
Equity	$1.05B
Growth Stability	-82%
PE	-6.34
PEG	0.77
PB	1.12
P/FCF	8.31
P/S	0.88
Price/Cash	0.21
Net Margins	8%
Op. Margins	6%
Earnings CAGR	8%
Sales Growth YoY	19%
Sales Growth QoQ	3%
Sales CAGR	3%
FCF CAGR	9%
Equity CAGR	9%
Earnings Stability	0.06

Earnings Growth YoY	58%
Earnings Growth QoQ	-5%
Earnings CAGR 5Y	-8%
Sales CAGR 5Y	-5%
FCF CAGR 5Y	-16%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	-11%
Sales CAGR 3Y	-11%
FCF CAGR 3Y	-23%
Equity CAGR 3Y	-9%
Market Cap	$1.17B
Revenue	$1.33B
Assets	$4.99B
Cash	$247.35M
Shares Outstanding	23.69M
Earnings Score	7%
Moat Score	36%
Shares Growth 3y	-1%
Equity Growth QoQ	6%
Equity Growth YoY	-13%

Assets & ROA

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Stockholders Equity & ROE

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Encore Capital Group Inc is a specialty finance company. It provides debt recovery solutions for consumers and property owners across a broad range of financial assets. The company 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. Encore has only a reportable segment being portfolio purchasing and recovery.

SEC Filings

Direct access to Encore Capital Group Inc (ECPG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Encore Capital Group Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Encore Capital Group Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 6%

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Encore Capital Group Inc Discounted Cash Flow

Fully customizable DCF calculator online for Encore Capital Group Inc.

Years

Calculation mode

= $2.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$141M	$154M	$168M	$183M	$200M	$218M	$238M	$259M	$283M	$309M	$337M	$3.4B
DCF		$140M	$139M	$138M	$136M	$135M	$134M	$133M	$132M	$131M	$130M	$1.3B
Value	$2.6B

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	9%	4%	2%	7%	8%	12%	14%	22%	14%	-17%	8%
ROA	-	6%	7%	7%	9%	9%	11%	14%	10%	0%	1%
ROE	-	7%	3%	14%	13%	16%	17%	30%	16%	-22%	-18%

Net Margins (8.19%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	37.4	29.03	36.86	29.97	17.48	12.12	11.33	16.96	26.2	-
Debt over Equity	4.4	5.31	5.12	6.06	4.36	3.5	2.76	2.58	2.49	3.59	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	80%	-82%	-82%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-82%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	8%	-11%	15%	11%	6%	7%	8%	-13%	-13%	-5%
Earnings YoY growth	-	-54%	-63%	370%	39%	53%	26%	66%	-45%	-206%	-8%
Equity YoY growth	-	-4%	-7%	4%	41%	25%	19%	-3%	-0%	-21%	-1%
FCF YoY growth	-	-3%	15%	-3%	25%	72%	36%	-3%	-36%	-26%	-16%