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Encore Capital Group Inc
ECPG : NASDAQ : Financial
$44.00 -0.75 | -1.68%
Today's Range: 43.55 - 44.33
Avg. Daily Volume: 232,400
07/10/14 - 4:00 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the first quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has greatly increased by 33.15% from the same quarter last year.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)253.74144.59
EBITDA ($mil)84.1941.84
EBIT ($mil)78.0739.99
Net Income ($mil)23.1819.45


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)196.3929.9
Total Assets ($mil)3434.71132.48
Total Debt ($mil)2612.13646.01
Equity ($mil)568.46426.93


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin66.6770.88
EBITDA Margin33.1728.93
Operating Margin30.7727.66
Sales Turnover0.260.51
Return on Assets2.36.84
Return on Equity14.218.71
Debt Q1 FY14 Q1 FY13
Current Ratio0.00.0
Debt/Capital0.820.6
Interest Expense37.966.85
Interest Coverage2.065.83


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)25.6823.34
Div / share0.00.0
EPS0.820.8
Book value / share22.1418.3
Institutional Own % n/a n/a
Avg Daily Volume245473.0309233.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 16.43 for the Consumer Finance industry and a discount compared to the S&P 500 average of 19.71. For additional comparison, its price-to-book ratio of 2.07 indicates a discount versus the S&P 500 average of 2.72 and a discount versus the industry average of 3.37. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ENCORE CAPITAL GROUP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ECPG 15.56 Peers 16.43   ECPG 25.20 Peers 13.49

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ECPG is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ECPG is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ECPG 9.07 Peers 14.39   ECPG 0.32 Peers 1.68

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ECPG is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ECPG trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ECPG 2.07 Peers 3.37   ECPG -6.35 Peers 14.05

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ECPG is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ECPG is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ECPG 1.34 Peers 2.54   ECPG 53.30 Peers 3.72

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ECPG is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ECPG has a sales growth rate that significantly exceeds its peers.

 

 

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