Encore Capital Group Inc

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ECPG : NASDAQ : Financial
$24.04 -0.86 | -3.45%
Today's Range: 23.96 - 25.30
Avg. Daily Volume: 256,000
07/28/16 - 4:00 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the first quarter of its fiscal year 2016 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 remained virtually unchanged only decreasing by 4.02% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)289.02277.78
EBITDA ($mil)98.2792.62
EBIT ($mil)88.484.49
Net Income ($mil)25.6929.43


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)144.61136.21
Total Assets ($mil)3823.623648.19
Total Debt ($mil)2893.432690.88
Equity ($mil)615.67641.47


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin66.7967.64
EBITDA Margin33.9933.34
Operating Margin30.5930.41
Sales Turnover0.310.3
Return on Assets1.083.01
Return on Equity7.2417.1
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.820.81
Interest Expense50.6942.3
Interest Coverage1.742.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)25.5126.01
Div / share0.00.0
EPS1.121.01
Book value / share24.1424.66
Institutional Own % n/a n/a
Avg Daily Volume257456.0333165.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 15.45 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 1.01 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.85. 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 14.56 Peers 15.45   ECPG 4.86 Peers 4.98

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ECPG 4.19 Peers 10.55   ECPG 0.07 Peers 1.21

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 1.01 Peers 1.85   ECPG -58.21 Peers -86.62

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.

 

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 0.53 Peers 1.68   ECPG 6.96 Peers 5.20

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ECPG has a sales growth rate that significantly exceeds its peers.

 

 

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