Encore Capital Group Stock Fundamentals
| ECPG Stock | USD 42.48 0.39 0.93% |
Encore Capital Group fundamentals help investors to digest information that contributes to Encore Capital's financial success or failures. It also enables traders to predict the movement of Encore Stock. The fundamental analysis module provides a way to measure Encore Capital's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Encore Capital stock.
At this time, Encore Capital's Income Tax Expense is most likely to increase significantly in the upcoming years. The Encore Capital's current Net Income Applicable To Common Shares is estimated to increase to about 234.9 M, while Total Revenue is projected to decrease to roughly 717.3 M. Encore | Select Account or Indicator |
Encore Capital Group Company Operating Margin Analysis
Encore Capital's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current Encore Capital Operating Margin | 0.14 % |
Most of Encore Capital's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Encore Capital Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Encore Operating Margin Historical Pattern
Today, most investors in Encore Capital Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Encore Capital's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Encore Capital operating margin as a starting point in their analysis.
Encore Capital Operating Margin |
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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Encore Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, Encore Capital Group has an Operating Margin of 0.1432%. This is 99.22% lower than that of the Consumer Finance sector and significantly higher than that of the Financials industry. The operating margin for all United States stocks is 102.6% lower than that of the firm.
Encore Capital Group Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Encore Capital's current stock value. Our valuation model uses many indicators to compare Encore Capital value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Encore Capital competition to find correlations between indicators driving Encore Capital's intrinsic value. More Info.Encore Capital Group is one of the top stocks in return on equity category among related companies. It is one of the top stocks in return on asset category among related companies . At this time, Encore Capital's Return On Equity is most likely to slightly decrease in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Encore Capital by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Encore Capital's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Encore Capital's earnings, one of the primary drivers of an investment's value.Encore Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Encore Capital's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Encore Capital could also be used in its relative valuation, which is a method of valuing Encore Capital by comparing valuation metrics of similar companies.Encore Capital is currently under evaluation in operating margin category among related companies.
Encore Fundamentals
| Return On Equity | -0.2 | ||||
| Return On Asset | 0.0374 | ||||
| Profit Margin | (0.17) % | ||||
| Operating Margin | 0.14 % | ||||
| Current Valuation | 4.27 B | ||||
| Shares Outstanding | 23.55 M | ||||
| Shares Owned By Insiders | 3.14 % | ||||
| Shares Owned By Institutions | 96.86 % | ||||
| Number Of Shares Shorted | 2.09 M | ||||
| Price To Earning | 7.43 X | ||||
| Price To Book | 1.08 X | ||||
| Price To Sales | 0.82 X | ||||
| Revenue | 1.22 B | ||||
| Gross Profit | 1.4 B | ||||
| EBITDA | 304.61 M | ||||
| Net Income | (206.49 M) | ||||
| Cash And Equivalents | 172.95 M | ||||
| Cash Per Share | 7.24 X | ||||
| Total Debt | 3.32 B | ||||
| Debt To Equity | 2.30 % | ||||
| Current Ratio | 13.36 X | ||||
| Book Value Per Share | 39.78 X | ||||
| Cash Flow From Operations | 152.99 M | ||||
| Short Ratio | 12.37 X | ||||
| Earnings Per Share | (8.72) X | ||||
| Price To Earnings To Growth | 0.15 X | ||||
| Target Price | 60.75 | ||||
| Number Of Employees | 7.4 K | ||||
| Beta | 1.36 | ||||
| Market Capitalization | 991.01 M | ||||
| Total Asset | 4.63 B | ||||
| Retained Earnings | 1.05 B | ||||
| Working Capital | (480.49 M) | ||||
| Current Asset | 570.15 M | ||||
| Current Liabilities | 294.24 M | ||||
| Net Asset | 4.63 B |
About Encore Capital Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Encore Capital Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Encore Capital using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Encore Capital Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | -173.9 M | -165.2 M | |
| Total Revenue | 1.2 B | 717.3 M | |
| Cost Of Revenue | 651.4 M | 684 M | |
| Stock Based Compensation To Revenue | 0.01 | 0.01 | |
| Sales General And Administrative To Revenue | 0.12 | 0.19 | |
| Research And Ddevelopement To Revenue | 0.00 | 0.00 | |
| Capex To Revenue | (0.04) | (0.04) | |
| Revenue Per Share | 51.66 | 54.24 | |
| Ebit Per Revenue | 0.01 | 0.01 |
Encore Capital Investors Sentiment
The influence of Encore Capital's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Encore. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Encore Capital's public news can be used to forecast risks associated with an investment in Encore. The trend in average sentiment can be used to explain how an investor holding Encore can time the market purely based on public headlines and social activities around Encore Capital Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Encore Capital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Encore Capital's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Encore Capital's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Encore Capital.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Encore Capital in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Encore Capital's short interest history, or implied volatility extrapolated from Encore Capital options trading.
Pair Trading with Encore Capital
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Encore Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Encore Capital will appreciate offsetting losses from the drop in the long position's value.Moving against Encore Stock
| 0.87 | FNVT | Finnovate Acquisition | PairCorr |
| 0.82 | FCFS | FirstCash Earnings Call Tomorrow | PairCorr |
| 0.76 | GS | Goldman Sachs Group Financial Report 17th of July 2024 | PairCorr |
| 0.67 | DFS | Discover Financial Financial Report 17th of July 2024 | PairCorr |
| 0.65 | MS | Morgan Stanley Financial Report 16th of July 2024 | PairCorr |
The ability to find closely correlated positions to Encore Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Encore Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Encore Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Encore Capital Group to buy it.
The correlation of Encore Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Encore Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Encore Capital Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Encore Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Encore Capital Piotroski F Score and Encore Capital Altman Z Score analysis. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Complementary Tools for Encore Stock analysis
When running Encore Capital's price analysis, check to measure Encore Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Encore Capital is operating at the current time. Most of Encore Capital's value examination focuses on studying past and present price action to predict the probability of Encore Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Encore Capital's price. Additionally, you may evaluate how the addition of Encore Capital to your portfolios can decrease your overall portfolio volatility.
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |
Is Encore Capital's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encore Capital. If investors know Encore will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encore Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.35) | Earnings Share (8.72) | Revenue Per Share 51.655 | Quarterly Revenue Growth 0.185 | Return On Assets 0.0374 |
The market value of Encore Capital Group is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Capital's value that differs from its market value or its book value, called intrinsic value, which is Encore Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encore Capital's market value can be influenced by many factors that don't directly affect Encore Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Encore Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encore Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.