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ECPG

STRONG BUYFLAG

Encore Capital Group, Inc. · Financial Services · United States · $1.9B · Avg Vol: $31M/d

92
StockRank
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Q
69
V
53
M
69
P/E (TTM)
7.1x
ROE
32.0%
D/E
3.9x
Dividend %
AI CONVICTION THESIS

Encore Capital buys and collects charged-off consumer debt, a model where reported earnings depend heavily on estimated future collections from purchased receivable portfolios, and it funds purchases with substantial debt that is costlier at current rates. That estimation-driven earnings quality is a real caveat the quant score cannot see. No accounting failure is known, so this is a flag.

COMPANY DESCRIPTION

Encore Capital Group, Inc. is a leading global debt management and recovery company that purchases portfolios of defaulted consumer receivables from financial institutions. The company leverages sophisticated data analytics and compliance-focused collection strategies to work with consumers to resolve their outstanding obligations. Encore's competitive advantage stems from its significant scale, global operational footprint, and expertise in navigating complex regulatory environments for debt recovery.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue1.4B1.2B1.3B1.8B8.1%1.9B1.9B1.9B3.5%
EPS8.06-8.72-5.8311.0511.1%12.4713.1614.2913.7%
Shares23.3M23.5M23.7M21.7M-7.0%21.4M
Debt2.9B3.3B3.7B4.0B11.3%4.0B
Equity1.2B936.5M767.3M976.8M-6.1%
Op CF210.7M153.0M156.2M153.2M-10.1%190.2M
Inv CF-130.2M-401.9M-440.4M-242.6M
Fin CF-107.4M268.3M317.8M44.9M
Loading 1Y...
PRICE (1Y)+6.8%
80.2083.6086.9990.3993.79Jun 10Jul 2Jul 23
SMA 50SMA 200
Close
$85.63
RSI (14)
39.1
52W High
$94.60
From 52W High
0.9%

SCORE BREAKDOWN

Quality
69
ROIC
12.1%86.5
ROE
32.0%94.3
GP/Assets
34.7%92.7
Op. Margin
38.7%57.6
FCF/Assets
2.4%60.6
Piotroski
774.5
Int. Cover
2.2x22.4
D/E Ratio
3.91x5.7
Current Ratio
18.24x91.3
Value
53
P/E (TTM)
7.1x82.9
EV/EBITDA
8.1x54.2
P/FCF
15.2x37.4
P/B
1.8x28.2
P/S
1.0x87.4
Div Yield
N/A
Momentum
69
52W High %
91%44.9
RS 6M
44%97.7
SMA 50/200
1.29x97.2
EPS Rev 4W
0.0%70.1
EPS Rev 12W
0.0%55.6
EPS Improve
+7%27.9
Q Growth
84%83.2

FUNDAMENTALS

Market Cap
$1.9B
P/E (Forward)
6.6x
Gross Margin
100.0%

SECTOR PEERS

Closest peers in Financial Services, ranked by industry match, size, and score similarity. Cross-listings of ECPG are excluded.

TickerCompanyMkt CapStockRankSignal
ECPGEncore Capital Group, Inc.(you)$1.9B92STRONG BUY
JCAPJefferson Capital, Inc.$1.2B78BUY
EZPWEZCORP, Inc.$1.8B66BUY
BFHBread Financial Holdings, Inc.$4.2B79BUY
WUThe Western Union Company$2.6B68BUY
RMRegional Management Corp.$384M92STRONG BUY
ATLCAtlanticus Holdings Corporation$1.5B63HOLD
SEZLSezzle Inc.$5.2B75BUY
AGM-AFederal Agricultural Mortgage Corporation$1.6B59HOLD
CACCCredit Acceptance Corporation$6.0B68BUY

Peer medians: ROE 10.2% · P/E 14.1x · Gross margin 87.6%

Encore Capital Group, Inc. (ECPG) — Stock Score Summary

Encore Capital Group, Inc. (ECPG) has a MoatMap StockRank of 92/100 based on Quality (69/100), Value (53/100), and Momentum (69/100) factor scores. The current signal is STRONG BUY. Encore Capital buys and collects charged-off consumer debt, a model where reported earnings depend heavily on estimated future collections from purchased receivable portfolios, and it funds purchases with substantial debt that is costlier at current rates. That estimation-driven earnings quality is a real caveat the quant score cannot see. No accounting failure is known, so this is a flag.

Encore Capital Group, Inc. is a leading global debt management and recovery company that purchases portfolios of defaulted consumer receivables from financial institutions. The company leverages sophisticated data analytics and compliance-focused collection strategies to work with consumers to resolve their outstanding obligations. Encore's competitive advantage stems from its significant scale, global operational footprint, and expertise in navigating complex regulatory environments for debt recovery.

Key Financial Metrics

Price$85.63
Market Cap$1.9B
P/E (TTM)7.11
P/E (Forward)6.64
Price/Book1.84
Return on Equity32.0%
Return on Invested Capital12.1%
Debt/Equity3.91x
Gross Margin100.0%
Operating Margin38.7%
Revenue Growth21.0%
Free Cash Flow$127M

Encore Capital Group, Inc. operates in the Credit Services industry, part of the Financial Services sector (United States).

Frequently Asked Questions

What is Encore Capital Group, Inc.’s (ECPG) StockRank?
MoatMap’s StockRank for Encore Capital Group, Inc. (ECPG) is 92/100, with a Strong Buy signal. It is a composite of Quality (69), Value (53), and Momentum (69) factor ranks across MoatMap’s 20,000+ stock universe.
Does Encore Capital Group, Inc. have an economic moat?
Encore Capital Group, Inc. (ECPG) has a Quality factor score of 69/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Encore Capital Group, Inc. a buy, hold, or sell?
MoatMap’s current signal for Encore Capital Group, Inc. (ECPG) is Strong Buy, based on a StockRank of 92/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Encore Capital Group, Inc. in?
Encore Capital Group, Inc. (ECPG) operates in the Financial Services sector, specifically the Credit Services industry (United States).