Encore Capital Group Inc

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ECPG : NASDAQ : Financial
$40.7 | %
Today's Range: 40.15 - 41.1
Avg. Daily Volume: 272800.0
06/23/17 - 4:00 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.33% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)271.94289.02
EBITDA ($mil)85.0798.27
EBIT ($mil)76.4488.4
Net Income ($mil)22.125.69


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)159.93144.61
Total Assets ($mil)3764.663823.62
Total Debt ($mil)2870.612893.43
Equity ($mil)601.29615.67


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin65.266.79
EBITDA Margin31.2833.99
Operating Margin28.1130.59
Sales Turnover0.270.3
Return on Assets1.931.08
Return on Equity12.0311.34
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.830.82
Interest Expense49.250.69
Interest Coverage1.551.74


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)25.7325.51
Div / share0.00.0
EPS0.851.12
Book value / share23.3724.14
Institutional Own % n/a n/a
Avg Daily Volume274755.0337897.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 13.84 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 1.68 indicates a discount versus the S&P 500 average of 3.08 and a discount versus the industry average of 2.17. 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 14.08 Peers 13.84   ECPG 7.99 Peers 6.69

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 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 9.43 Peers 14.06   ECPG 0.61 Peers 7.49

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 1.68 Peers 2.17   ECPG 4.90 Peers -36.45

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.

 

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

ECPG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ECPG 1.00 Peers 1.86   ECPG -11.95 Peers 5.35

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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