Encore Capital Group Inc

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ECPG : NASDAQ : Financial
$33.35 | %
Today's Range: 33.05 - 33.55
Avg. Daily Volume: 312800.0
04/28/17 - 4:00 PM ET

Financial Analysis


ENCORE CAPITAL GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 6.68% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)271.38290.61
EBITDA ($mil)88.0793.44
EBIT ($mil)79.3384.34
Net Income ($mil)22.81-0.99


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)149.77153.59
Total Assets ($mil)3670.54219.85
Total Debt ($mil)2805.983216.57
Equity ($mil)562.3602.58


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin65.5567.96
EBITDA Margin32.4532.15
Operating Margin29.2329.02
Sales Turnover0.280.27
Return on Assets2.081.06
Return on Equity14.0311.37
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.830.84
Interest Expense48.4550.19
Interest Coverage1.641.68


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)25.5925.29
Div / share0.00.0
EPS0.851.08
Book value / share21.9723.83
Institutional Own % n/a n/a
Avg Daily Volume313898.0403598.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 13.51 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 1.49 indicates a discount versus the S&P 500 average of 2.99 and a discount versus the industry average of 2.18. 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 10.72 Peers 13.51   ECPG 6.42 Peers 79.36

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ECPG is trading at a discount 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 significant 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 7.88 Peers 13.31   ECPG 0.47 Peers 6.82

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 1.49 Peers 2.18   ECPG 20.07 Peers -13.47

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 0.81 Peers 1.96   ECPG -9.58 Peers 6.16

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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