Encore Capital Group Inc
Find Ratings ReportsENCORE CAPITAL GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.
During the same period, stockholders' equity ("net worth") has decreased by 20.60% from the same quarter last year.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 277.39 | 234.0 |
EBITDA ($mil) | 48.7 | 13.06 |
EBIT ($mil) | 39.73 | -2.31 |
Net Income ($mil) | -270.76 | -73.12 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 158.36 | 143.91 |
Total Assets ($mil) | 4630.49 | 4508.36 |
Total Debt ($mil) | 3399.5 | 2982.42 |
Equity ($mil) | 936.54 | 1179.63 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 54.55 | 49.33 |
EBITDA Margin | 17.55 | 5.57 |
Operating Margin | 14.32 | -0.99 |
Sales Turnover | 0.26 | 0.31 |
Return on Assets | -4.45 | 4.31 |
Return on Equity | -22.05 | 16.49 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.0 | 0.0 |
Debt/Capital | 0.78 | 0.72 |
Interest Expense | 54.37 | 42.31 |
Interest Coverage | 0.73 | -0.05 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 23.55 | 23.32 |
Div / share | 0.0 | 0.0 |
EPS | -11.4 | -3.11 |
Book value / share | 39.78 | 50.58 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 154606.0 | 175637.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 8.59. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, ENCORE CAPITAL GROUP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ECPG NM | Peers 17.79 | ECPG 6.91 | Peers 20.37 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. ECPG's P/E is negative making this valuation measure meaningless. |
Discount. 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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ECPG 5.18 | Peers 13.90 | ECPG NA | Peers 1.74 | |||||||||||||||||||||
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. |
Neutral. 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. Ratio not available. |
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Price/Book |
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Earnings Growth |
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ECPG 1.13 | Peers 8.59 | ECPG -229.11 | Peers 24.93 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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ECPG 0.86 | Peers 4.86 | ECPG -12.57 | Peers 44.98 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ECPG significantly trails its peers on the basis of sales growth. |
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