Encore Capital Group Inc

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ECPG : NASDAQ : Financial
$20.00 -0.05 | -0.25%
Today's Range: 19.70 - 20.30
Avg. Daily Volume: 299,200
10/25/16 - 10:11 AM ET

Financial Analysis

ENCORE CAPITAL GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.96% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)289.44282.66
EBITDA ($mil)102.2899.48
EBIT ($mil)94.0591.6
Net Income ($mil)29.5927.66

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)139.01138.16
Total Assets ($mil)3770.454113.98
Total Debt ($mil)2849.073134.19
Equity ($mil)624.04649.81

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin65.369.11
EBITDA Margin35.3335.19
Operating Margin32.4932.41
Sales Turnover0.310.27
Return on Assets1.142.77
Return on Equity7.4517.25
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Interest Expense50.646.25
Interest Coverage1.861.98

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)25.5325.24
Div / share0.00.0
Book value / share24.4525.75
Institutional Own % n/a n/a
Avg Daily Volume289362.0255975.0


HOLD. The current P/E ratio indicates a premium compared to an average of 11.09 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 24.64. Conducting a second comparison, its price-to-book ratio of 0.83 indicates a significant discount versus the S&P 500 average of 2.73 and a discount versus the industry average of 1.87. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ECPG 11.37 Peers 11.09   ECPG 4.45 Peers 4.71

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ECPG 3.75 Peers 10.56   ECPG 0.06 Peers 2.02

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ECPG 0.83 Peers 1.87   ECPG -56.66 Peers -14.34

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ECPG 0.44 Peers 1.69   ECPG 5.58 Peers 5.17

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

ECPG is keeping pace with its peers on the basis of sales growth.



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