Is Encore Capital Stock a Good Investment?
Encore Capital Investment Advice | ECPG |
- Examine Encore Capital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Encore Capital's leadership team and their track record. Good management can help Encore Capital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Encore Capital's business and its evolving consumer preferences.
- Compare Encore Capital's performance and market position to its competitors. Analyze how Encore Capital is positioned in terms of product offerings, innovation, and market share.
- Check if Encore Capital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Encore Capital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Encore Capital Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Encore Capital Group is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Encore Capital Stock
Researching Encore Capital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.13. Some equities with similar Price to Book (P/B) outperform the market in the long run. Encore Capital Group has Price/Earnings To Growth (PEG) ratio of 0.17. The entity recorded a loss per share of 7.83. The firm had not issued any dividends in recent years.
To determine if Encore Capital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Encore Capital's research are outlined below:
| The company reported the previous year's revenue of 1.22 B. Net Loss for the year was (206.49 M) with profit before overhead, payroll, taxes, and interest of 1.33 B. | |
| Over 97.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Encore Capital Group Inc Announces Fourth Quarter 2024 Financial Results Release Date |
Encore Capital Quarterly Cash And Short Term Investments |
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Encore Capital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Encore Capital Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Encore Capital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Encore Capital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Encore Capital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-08-08 | 2007-06-30 | -0.01 | -0.04 | -0.03 | 300 | ||
2007-05-08 | 2007-03-31 | 0.21 | 0.24 | 0.03 | 14 | ||
2006-11-02 | 2006-09-30 | 0.25 | 0.22 | -0.03 | 12 | ||
2004-10-28 | 2004-09-30 | 0.22 | 0.25 | 0.03 | 13 | ||
2004-08-03 | 2004-06-30 | 0.21 | 0.24 | 0.03 | 14 | ||
2005-05-09 | 2005-03-31 | 0.36 | 0.32 | -0.04 | 11 | ||
2010-10-26 | 2010-09-30 | 0.44 | 0.49 | 0.05 | 11 | ||
2010-04-27 | 2010-03-31 | 0.39 | 0.44 | 0.05 | 12 |
Know Encore Capital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Encore Capital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Encore Capital Group backward and forwards among themselves. Encore Capital's institutional investor refers to the entity that pools money to purchase Encore Capital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Fmr Inc | 2024-09-30 | 693.2 K | Geode Capital Management, Llc | 2024-09-30 | 570 K | No Street Gp Lp | 2024-09-30 | 500 K | Charles Schwab Investment Management Inc | 2024-09-30 | 481.5 K | Clearbridge Advisors, Llc | 2024-09-30 | 385.6 K | Ubs Group Ag | 2024-09-30 | 369.3 K | Northern Trust Corp | 2024-09-30 | 369.1 K | D. E. Shaw & Co Lp | 2024-09-03 | 303 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 285.2 K | Blackrock Inc | 2024-09-30 | 3.8 M | Vanguard Group Inc | 2024-09-30 | 2.6 M |
Encore Capital's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.17 B.Market Cap |
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Encore Capital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.05) | (0.04) | |
| Return On Assets | (0.04) | (0.04) | |
| Return On Equity | (0.25) | (0.24) |
Determining Encore Capital's profitability involves analyzing its financial statements and using various financial metrics to determine if Encore Capital is a good buy. For example, gross profit margin measures Encore Capital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Encore Capital's profitability and make more informed investment decisions.
Encore Capital's Earnings Breakdown by Geography
Evaluate Encore Capital's management efficiency
Encore Capital Group has return on total asset (ROA) of 0.0425 % which means that it generated a profit of $0.0425 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1644) %, meaning that it created substantial loss on money invested by shareholders. Encore Capital's management efficiency ratios could be used to measure how well Encore Capital manages its routine affairs as well as how well it operates its assets and liabilities. The Encore Capital's current Return On Tangible Assets is estimated to increase to -0.04. The current Return On Capital Employed is estimated to decrease to 0. At this time, Encore Capital's Other Current Assets are most likely to increase significantly in the upcoming years. The Encore Capital's current Other Assets is estimated to increase to about 4.5 B, while Total Current Assets are projected to decrease to roughly 234.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 35.61 | 37.39 | |
| Tangible Book Value Per Share | 12.55 | 13.18 | |
| Enterprise Value Over EBITDA | 61.95 | 65.05 | |
| Price Book Value Ratio | 1.48 | 1.82 | |
| Enterprise Value Multiple | 61.95 | 65.05 | |
| Price Fair Value | 1.48 | 1.82 | |
| Enterprise Value | 51.3 M | 47 M |
Effective leadership at Encore Capital drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Beta 1.559 |
Basic technical analysis of Encore Stock
As of the 30th of January, Encore Capital shows the Downside Deviation of 1.44, semi deviation of 1.28, and Mean Deviation of 1.23. 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's future prices. Please confirm Encore Capital Group jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if Encore Capital Group is priced favorably, providing market reflects its regular price of 49.7 per share. Given that Encore Capital has jensen alpha of 0.0717, we urge you to verify Encore Capital Group's prevailing market performance to make sure the company can sustain itself at a future point.Encore Capital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Encore Capital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Encore Capital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Encore Capital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Encore Capital's Outstanding Corporate Bonds
Encore Capital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Encore Capital Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Encore bonds can be classified according to their maturity, which is the date when Encore Capital Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US29254BAA52 Corp BondUS29254BAA52 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View | |
| ENCANA P 65 Corp BondUS292505AD65 | View | |
| ENCANA P 6625 Corp BondUS292505AE49 | View | |
| ENCANA P 65 Corp BondUS292505AG96 | View | |
| OVV 515 15 NOV 41 Corp BondUS292505AK09 | View | |
| ENBRIDGE INC 45 Corp BondUS29250NAJ46 | View | |
| ENBRIDGE INC 425 Corp BondUS29250NAL91 | View |
Understand Encore Capital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Encore Capital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0736 | |||
| Market Risk Adjusted Performance | 0.1939 | |||
| Mean Deviation | 1.23 | |||
| Semi Deviation | 1.28 | |||
| Downside Deviation | 1.44 | |||
| Coefficient Of Variation | 1217.8 | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.54 | |||
| Information Ratio | 0.0288 | |||
| Jensen Alpha | 0.0717 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0319 | |||
| Treynor Ratio | 0.1839 | |||
| Maximum Drawdown | 7.9 | |||
| Value At Risk | (2.05) | |||
| Potential Upside | 2.55 | |||
| Downside Variance | 2.08 | |||
| Semi Variance | 1.64 | |||
| Expected Short fall | (1.29) | |||
| Skewness | 0.6409 | |||
| Kurtosis | 0.766 |
| Risk Adjusted Performance | 0.0736 | |||
| Market Risk Adjusted Performance | 0.1939 | |||
| Mean Deviation | 1.23 | |||
| Semi Deviation | 1.28 | |||
| Downside Deviation | 1.44 | |||
| Coefficient Of Variation | 1217.8 | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.54 | |||
| Information Ratio | 0.0288 | |||
| Jensen Alpha | 0.0717 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0319 | |||
| Treynor Ratio | 0.1839 | |||
| Maximum Drawdown | 7.9 | |||
| Value At Risk | (2.05) | |||
| Potential Upside | 2.55 | |||
| Downside Variance | 2.08 | |||
| Semi Variance | 1.64 | |||
| Expected Short fall | (1.29) | |||
| Skewness | 0.6409 | |||
| Kurtosis | 0.766 |
Consider Encore Capital's intraday indicators
Encore Capital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Encore Capital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 1898.44 | |||
| Daily Balance Of Power | 0.4146 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 49.77 | |||
| Day Typical Price | 49.75 | |||
| Price Action Indicator | 0.1 | |||
| Period Momentum Indicator | 0.34 |
Encore Capital Corporate Filings
| 23rd of January 2025 Other Reports | ViewVerify | |
F4 | 3rd of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Encore Stock media impact
Far too much social signal, news, headlines, and media speculation about Encore Capital that are available to investors today. That information is available publicly through Encore media outlets and privately through word of mouth or via Encore internal channels. However, regardless of the origin, that massive amount of Encore data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Encore Capital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Encore Capital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Encore Capital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Encore Capital alpha.
Encore Capital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Encore Capital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Encore Capital Maximum Pain Price Across March 21st 2025 Option Contracts
Encore Capital's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Encore Capital close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Encore Capital's options.
Encore Capital Corporate Management
| Craig Buick | CEO Group | Profile | |
| Faryar Borhani | Senior Communications | Profile | |
| Andrew Asch | Sr Counsel | Profile | |
| Tracy Ting | Senior Officer | Profile | |
| Peter Reck | Principal Officer | Profile | |
| Steve Carmichael | Senior Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Consumer Finance space 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 0.595 | Earnings Share (7.83) | Revenue Per Share | Quarterly Revenue Growth 0.186 | Return On Assets |
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.
In summary, please note that there is a difference between Encore Capital's value and its price, as these two are different measures arrived at by various 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.