Encore Capital Group Inc

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ECPG : NASDAQ : Financial
$33.85 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 291500.0
02/17/17 - 4:00 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has decreased by 7.52% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)179.42287.24
EBITDA ($mil)-8.05104.03
EBIT ($mil)-16.0895.98
Net Income ($mil)-1.52-10.96


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)157.67175.22
Total Assets ($mil)3705.484103.01
Total Debt ($mil)2848.443116.44
Equity ($mil)581.5628.79


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin48.7770.33
EBITDA Margin-4.4836.21
Operating Margin-8.9633.42
Sales Turnover0.280.27
Return on Assets1.421.77
Return on Equity9.6210.9
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.830.83
Interest Expense48.6347.82
Interest Coverage-0.332.01


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)25.5325.27
Div / share0.00.0
EPS-0.06-0.52
Book value / share22.7824.88
Institutional Own % n/a n/a
Avg Daily Volume296068.0343215.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 13.68 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 1.48 indicates a discount versus the S&P 500 average of 2.94 and a discount versus the industry average of 2.21. 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 15.60 Peers 13.68   ECPG 6.29 Peers 7.49

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ECPG is trading at a premium to 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 7.95 Peers 13.44   ECPG 0.15 Peers 1.01

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 1.48 Peers 2.21   ECPG -13.60 Peers -1.98

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 0.82 Peers 2.02   ECPG -6.11 Peers 6.33

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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