| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | Encore Capital Long Term Debt to Equity | 3.24 | 4.45 | 5.39 | 4.85 | 3.56 | Encore Capital Interest Coverage | 2.71 | 1.91 | 1.31 | 1.51 | 2.87 |
Encore Capital to continue ascent in June
 | By Vlad Skutelnik | Macroaxis Story |
My story will digest Encore Capital. I will evaluate why we are still optimistic in anticipation of a recovery. Encore Capital Group follows market closely. The returns on the market and returns on Encore Capital appear slightly-related for the last few months. Sound fundamental drivers of the firm may also indicate signals of longer-term gains for the firm shareholders. Encore Capital Group shows prevailing Real Value of $37.1839 per share. The current price of the firm is $36.13. At this time the firm appears to be fairly valued. Macroaxis computes value of Encore Capital Group from reviewing the firm fundamentals such as Operating Margin of 34.32%, Profit Margin of 10.62% and Current Valuation of 4.61B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise to go long with undervalued instruments and to sell out overvalued instruments since at some point assets prices and their ongoing real values will submerge.
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Reviewed by Gabriel Shpitalnik
This firm average rating is Buy from 6 analysts. As of 24 of May Encore Capital shows Downside Deviation of 2.46, Semi Deviation of 1.93 and Mean Deviation of 2.31. Encore Capital Group technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm future prices. In plain English you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum or the prices will eventually revert. We found nineteen technical drivers for Encore Capital Group which can be compared to its rivals. Please confirm Encore Capital Group Jensen Alpha, and the relationship between Coefficient Of Variation and Potential Upside to decide if Encore Capital Group is priced favorably providing market reflects its regular price of 36.13 per share. Given that Encore Capital has Jensen Alpha of 0.7049, we urge you verify Encore Capital Group prevailing market performance to make sure the company can sustain itself at future point.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Encore Capital. Your research has to be compared to or analyzed against Encore Capital's peers to derive any actionable benefits. When done correctly, Encore Capital's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Encore Capital Group.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Encore Capital Group. In general, sophisticated investors focus on analyzing Encore Capital stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Encore Capital's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Encore Capital's intrinsic value. In addition to deriving basic predictive indicators for Encore Capital, many experienced traders also check how macroeconomic factors affect Encore Capital price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Encore Capital's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How does Encore Stands against Peers?
Analyzing Encore Capital competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Encore Capital across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Encore Capital Competition DetailsEncore Capital Gross Profit
Encore Capital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Encore Capital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Encore Capital Gross Profit growth over the last 10 years. Please check Encore Capital's gross profit and other fundamental indicators for more details.
Going after Encore Financials
The latest price spikes of Encore Capital Group could raise concerns from investors as the firm closed today at a share price of 35.69 on 273020 in volume. The company executives were quite successful positioning the firm components to exploit market volatility in June 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 3.7522. The above-average volatility is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Encore Capital partners. Encore Capital preserves 294.24m of current liabilities. Encore Capital is selling at 36.13. That is 0.95 percent increase. Day Low was 35.69. Encore Capital Current Ratio is increasing over the last 5 years. Further, Encore Capital Revenue Per Employee is decreasing over the last 5 years. The ongoing value of Encore Capital Revenue Per Employee is 222,397.
To conclude, our analysis show that Encore Capital Follows market closely. The firm is fairly valued and projects odds of financial turmoil below average for the next 2 years. Our final buy-hold-sell recommendation on the firm is Strong Buy.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Encore Capital Group. Please refer to our Terms of Use for any information regarding our disclosure principles.