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Encore Capital Group Inc
ECPG : NASDAQ : Financial
$40.13 | %
Today's Range: 38.97 - 40.19
Avg. Daily Volume: 222,000
08/28/15 - 3:59 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged 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.

During the same period, stockholders' equity ("net worth") has increased by 12.21% from the same quarter last year.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)290.36269.2
EBITDA ($mil)102.3989.98
EBIT ($mil)94.383.15
Net Income ($mil)27.6623.56


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)138.16123.41
Total Assets ($mil)4113.983592.8
Total Debt ($mil)3134.192715.87
Equity ($mil)649.81579.09


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin68.8167.29
EBITDA Margin35.2633.42
Operating Margin32.4830.89
Sales Turnover0.270.28
Return on Assets2.772.54
Return on Equity17.816.11
Debt Q2 FY15 Q2 FY14
Current Ratio0.00.0
Debt/Capital0.830.82
Interest Expense46.2543.22
Interest Coverage2.041.92


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)25.2425.63
Div / share0.00.0
EPS1.030.86
Book value / share25.7522.59
Institutional Own % n/a n/a
Avg Daily Volume221967.0220427.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 12.44 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 20.51. For additional comparison, its price-to-book ratio of 1.51 indicates a discount versus the S&P 500 average of 2.73 and a discount versus the industry average of 2.38. The price-to-sales ratio is well below both the S&P 500 average and 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 9.10 Peers 12.44   ECPG 8.18 Peers 6.56

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ECPG is trading at a significant discount to 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 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 6.57 Peers 12.72   ECPG 0.26 Peers 1.06

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 1.51 Peers 2.38   ECPG 26.40 Peers 74.91

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 0.87 Peers 2.15   ECPG 13.08 Peers 45.75

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ECPG significantly trails its peers on the basis of sales growth

 

 

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