Encore Capital Group Inc (ECPG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Encore Capital Group Inc stock (ECPG) is currently trading at $70.85. Encore Capital Group Inc PE ratio is 6.23. Encore Capital Group Inc PS ratio (Price-to-Sales) is 0.86. Analyst consensus price target for ECPG is $82.67. WallStSmart rates ECPG as Strong Buy.
- ECPG PE ratio analysis and historical PE chart
- ECPG PS ratio (Price-to-Sales) history and trend
- ECPG intrinsic value — DCF, Graham Number, EPV models
- ECPG stock price prediction 2025 2026 2027 2028 2029 2030
- ECPG fair value vs current price
- ECPG insider transactions and insider buying
- Is ECPG undervalued or overvalued?
- Encore Capital Group Inc financial analysis — revenue, earnings, cash flow
- ECPG Piotroski F-Score and Altman Z-Score
- ECPG analyst price target and Smart Rating
Encore Capital Group Inc
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ECPG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Encore Capital Group Inc (ECPG)
ECPG trades at a significant discount to its Graham intrinsic value of $510.59, offering a 89% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Encore Capital Group Inc (ECPG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, operating margin. Overall metrics suggest strong investment potential with favorable risk/reward.
Encore Capital Group Inc (ECPG) Key Strengths (8)
Growing significantly faster than its price suggests
Every $100 of shareholder equity generates $29 in profit
Keeps $82 of every $100 in revenue after operating costs
Paying less than $1 for every $1 of annual revenue
Revenue surging 78.30% year-over-year
Earnings per share surging 151.60% year-over-year
106.80% of shares held by major funds and institutions
Trading at 1.49x book value, attractively priced
Supporting Valuation Data
Encore Capital Group Inc (ECPG) Areas to Watch (2)
Small-cap company with higher risk but more growth potential
Decent profitability, keeps $14 per $100 revenue
Encore Capital Group Inc (ECPG) Detailed Analysis Report
Overall Assessment
This company scores 90/100 in our Smart Analysis, earning a A grade. Out of 10 metrics analyzed, 8 register as strengths (avg 9.8/10) while 2 fall into concern territory (avg 5.5/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on PEG Ratio, Return on Equity, Operating Margin. Valuation metrics including PEG Ratio (0.17), Price/Sales (0.86), Price/Book (1.49) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 29.40%, Operating Margin at 81.80%. Growth metrics are encouraging with Revenue Growth at 78.30%, EPS Growth at 151.60%.
The Bear Case
The primary concerns are Market Cap, Profit Margin. Profitability pressure is visible in Profit Margin at 14.50%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Market Cap improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 29.40% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 78.30% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of PEG Ratio and Return on Equity makes a compelling case at current levels. The key risk is Market Cap, but the overall fundamental picture is positive with a clear path to maintaining or improving the current A grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ECPG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ECPG's Price-to-Sales ratio of 0.86x trades 20% below its historical average of 1.07x (33th percentile). The current valuation is 57% below its historical high of 1.99x set in Dec 2013, and 145% above its historical low of 0.35x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Encore Capital Group Inc (ECPG) · FINANCIAL SERVICES › CREDIT SERVICES
The Big Picture
Encore Capital Group Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 1.8B with 78% growth year-over-year. Profit margins of 14.5% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 78% YoY, reaching 1.8B. This pace significantly outperforms most CREDIT SERVICES peers.
ROE of 2940.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Margin expansion: can Encore Capital Group Inc push profit margins above 15% as the business scales?
Growth sustainability: can Encore Capital Group Inc maintain 78%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor CREDIT SERVICES industry trends, competitive moves, and regulatory changes that could impact Encore Capital Group Inc.
Bottom Line
Encore Capital Group Inc offers an attractive blend of growth (78% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Encore Capital Group Inc(ECPG)
NASDAQ
FINANCIAL SERVICES
CREDIT SERVICES
USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.