Encore Capital Group, Inc.
$78.01
-0.70%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. The company was incorporated in 1999 and is headquartered in San Diego, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 7.1).
Valuation inputs: P/E 7.1, earnings yield +14.2%, momentum -0.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +26.3%, ROIC +8.9%).
Profitability stack: net margin +14.6%, ROE +26.3%, ROIC +8.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +81.7%, momentum -0.7%, net margin +14.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Encore Capital Group, Inc. Market vs Earnings Trajectory
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Encore Capital Group, Inc. Fair Value Envelope
Encore Capital Group, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Encore Capital Group, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Encore Capital Group, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Encore Capital Group, Inc. Street Expectations Map
Wall Street analysts project that ECPG stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 85.00, with estimates ranging from a low of 70.00 to a high of 100.00.
The consensus 1-year price target stands at 85.00, with estimates ranging from a low of 70.00 to a high of 100.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Encore Capital Group, Inc. Insider Positioning
During the last 12 months, insiders have purchased $1.11M and sold $867K worth of ECPG shares, resulting in $245K of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
4.0K
240.22K
-240K
-$240K
6-9 Months
0
0.00
12.4K
627.12K
-627K
-$627K
9-12 Months
29.1K
1.11M
0
0.00
+1.1M
+$1.11M
Top Buyers
Gupta Ashwini
Director
$182K
Hannam Wendy
Director
$155K
Goings William C.
Director
$155K
Angela A. Knight
Director
$155K
Monaco Michael P
Director
$155K
Top Sellers
Bell Ryan B
Officer: President, Mcm
$490K
Yung John
Officer: President, Intl. And Cabot
$302K
Olle Laura
Director
$75K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $245K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Insider Participation
5 insider buyers vs. 3 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.
No Dividend Yield Data
ECPG has not reported any dividend yield values in the available annual periods.
ecpg Dividend History
Learning Layer
Related Guides
Build conviction on ECPG by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.