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Encore Capital Group, Inc. (ECPG) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Encore Capital Group, Inc.

ECPGMarket cap $2.11BPrice $99.3

Country🇺🇸United States

SectorFinancials

IndustryConsumer Finance

Buys distressed consumer debt for pennies on the dollar, then collects what's owed through its subsidiaries like Midland Credit Management. Turns other lenders' write-offs into billions in recovered cash across multiple countries.

In Bastion Portfolios?

52W Return+140%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+8%6

Revenue Forecast

Rev CAGR (1y)+8%5

Rev CAGR (3y)+4%3

Rev CAGR (5y)+3%3

Earnings Forecast

EPS Growth Y+1+35%9

EPS Growth Y+2+0%4

EPS Growth Y+3+2%4

Quality

Margins

EBIT Margin38%9

Net Income Margin16%7

Free Cash Flow Margin7%5

Debt

Net Debt/EBITDA5.32

Efficiency

ROE31%9

ROA6%6

Earnings Stability44

GEAR+AVERAGE66

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)710

P/E Ratio (Forward 3y)710

P/BV2.07

EV Multiples

EV/EBITDA Fwd810

EV/EBIT Fwd810

Yield

Free Cash Flow Yield0.0%10

Dividend Yieldna–

Momentum

Short term

1 month return+0%8

3 month return+13%9

YTD return+83%10

Mid term

Price vs 52wHigh95%9

1 year return+133%10

Long term

3 year return+101%8

5 year return+97%7

Risk Shield

Price Risk

Beta0.85

Volatility35%5

Free Cash Flow

Free Cash Flow Margin7%5

Free Cash Flow Yield0.0%10

Quality

ROCE14%6

Earnings Stability44

Net Debt/EBITDA5.32

02Growth

Is it actually growing, and how fast?

ECPGEncore Capital Group

Revenue FY25$1.8B

GROWTH RATING↗

WEAK29 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+8%6

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+35%9

EPS growth, FY27E+0%4

EPS growth, FY28E+2%4

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 2%/yr vs revenue 4%/yr).

WATCH

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 8%/yr over the last 3 years; forecasts see it cooling to 4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 71% of companies worldwide.

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Steady Grower

Growth is a weak point here: a business that is slowing. The one thing to watch: the five-year outlook is thin.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG93 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+0%8

3-month return+13%9

YTD return+83%10

MID & LONG-TERM▾SCORE

% of 52-week high95%9

1-year return+133%10

3-year return+101%8

5-year return+97%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +101% over three years and +97% over five, ahead of 70% of the market.

It's up 133% over the past year, now 5% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+0%), over three months (+13%) and so far this year (+83%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally, and the stock trades near its highs. The market is fully behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Encore Capital Group, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

ECPGEncore Capital Group

Revenue FY25$1.8B

GROWTH RATING↗

WEAK29 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+8%6

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+35%9

EPS growth, FY27E+0%4

EPS growth, FY28E+2%4

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 2%/yr vs revenue 4%/yr).

WATCH

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 8%/yr over the last 3 years; forecasts see it cooling to 4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 71% of companies worldwide.

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Steady Grower

Growth is a weak point here: a business that is slowing. The one thing to watch: the five-year outlook is thin.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG93 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+0%8

3-month return+13%9

YTD return+83%10

MID & LONG-TERM▾SCORE

% of 52-week high95%9

1-year return+133%10

3-year return+101%8

5-year return+97%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +101% over three years and +97% over five, ahead of 70% of the market.

It's up 133% over the past year, now 5% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+0%), over three months (+13%) and so far this year (+83%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally, and the stock trades near its highs. The market is fully behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Encore Capital Group, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community