Encore Capital Group Inc

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ECPG : NASDAQ : Financial
$38.35 -0.65 | -1.7%
Today's Range: 38.1 - 39.0
Avg. Daily Volume: 219600.0
08/23/17 - 3:59 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged 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 11.27% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)290.92289.44
EBITDA ($mil)89.77102.28
EBIT ($mil)81.0994.05
Net Income ($mil)20.2629.59


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)146.65139.01
Total Assets ($mil)3918.83770.45
Total Debt ($mil)2963.932849.07
Equity ($mil)553.71624.04


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin65.6965.3
EBITDA Margin30.8535.33
Operating Margin27.8832.49
Sales Turnover0.260.31
Return on Assets1.621.14
Return on Equity11.3711.76
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.840.82
Interest Expense50.5250.6
Interest Coverage1.611.86


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)25.7425.53
Div / share0.00.0
EPS0.771.14
Book value / share21.5124.45
Institutional Own % n/a n/a
Avg Daily Volume228411.0344700.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 14.78 for the Consumer Finance industry and a discount compared to the S&P 500 average of 24.23. For additional comparison, its price-to-book ratio of 1.82 indicates a discount versus the S&P 500 average of 3.02 and a discount versus the industry average of 2.22. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ECPG 16.20 Peers 14.78   ECPG 6.57 Peers 7.35

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.

 

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 discount 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 9.52 Peers 13.99   ECPG 0.77 Peers 5.70

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 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 1.82 Peers 2.22   ECPG -14.54 Peers 41.07

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 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 0.99 Peers 1.88   ECPG -12.34 Peers 6.18

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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