Encore Capital Group, Inc.
- Open
- 96.94
- Day high
- 97.34
- Day low
- 94.61
- Prev close
- 97.01
- Volume
- 78K
- Mkt cap
- $2.0B
- P/E (TTM)
- 7.0
- EPS (TTM)
- $13.59
- P/B
- 1.9
- P/S
- 1.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$905K over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions accumulating (13F)
Encore Capital Group, Inc. (ECPG) is a Financial Services company listed on NASDAQ. The stock is up 134% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
Encore Capital Group, Inc. (ECPG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ECPG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $2.67 | $2.81 | +5.2% | $492M | +8.1% |
| May 6, 2026 | $3.26 | $3.86 | +18.4% | $475M | +6.5% |
| Feb 25, 2026 | $2.20 | $3.37 | +53.2% | $474M | +12.2% |
| Nov 5, 2025 | $1.92 | $3.17 | +65.1% | $460M | +8.8% |
| Aug 6, 2025 | $1.44 | $2.49 | +72.9% | $442M | +12.4% |
| May 7, 2025 | $1.24 | $1.93 | +55.6% | $393M | +4.9% |
| Feb 26, 2025 | $1.55 | $1.50 | -3.2% | $266M | -28.9% |
| Feb 21, 2024 | $1.22 | $1.25 | +2.5% | $277M | -14.2% |
| Nov 1, 2023 | $1.32 | $0.79 | -40.2% | $310M | -5.5% |
| Aug 2, 2023 | $1.25 | $1.08 | -13.6% | $323M | -0.4% |
| May 3, 2023 | $1.21 | $0.75 | -38.0% | $313M | -4.9% |
| Feb 22, 2023 | $1.46 | $-3.11 | -312.6% | $234M | -26.9% |
ECPG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 27, 2026 | Beck Robert Williamdirector | Grant | 1,462 | $100.15 |
| Jun 23, 2026 | Goings William C.director | Grant | 2,144 | $83.95 |
| Jun 23, 2026 | Gupta Ashwinidirector | Grant | 2,144 | $83.95 |
| Jun 23, 2026 | Angela A. Knightdirector | Grant | 2,144 | $83.95 |
| Jun 23, 2026 | Stovsky Richard Pdirector | Grant | 2,144 | $83.95 |
| Jun 23, 2026 | Hilzinger Jeffrey Albertdirector | Grant | 2,144 | $83.95 |
| Jun 23, 2026 | OLLE LAURAdirector | Grant | 2,144 | — |
| Jun 23, 2026 | MONACO MICHAEL Pdirector | Grant | 2,144 | $83.95 |
| Jun 11, 2026 | Asch Andrew Ericofficer: SVP, General Counsel | Sell | 833 | $80.51 |
| Jun 11, 2026 | Asch Andrew Ericofficer: SVP, General Counsel | Sell | 6,922 | $81.52 |
| Jun 11, 2026 | Asch Andrew Ericofficer: SVP, General Counsel | Sell | 774 | $82.08 |
| Jun 11, 2026 | Asch Andrew Ericofficer: SVP, General Counsel | Sell | 556 | $82.31 |
| Jun 11, 2026 | Yung Johnofficer: President, Intl. and Cabot | Sell | 2,000 | $82.08 |
| Jun 2, 2026 | Gupta Ashwinidirector | Grant | 340 | $78.56 |
| Mar 11, 2026 | Masih Ashishdirector, officer: President and CEO | Grant | 14,105 | — |
Source: ECPG SEC Form 4 filings, latest Aug 27, 2026. For informational purposes only — not investment advice.
See the full ECPG insider & 13F page →Encore Capital Group, Inc. company profile
Overview
Encore Capital Group, Inc. (NASDAQ:ECPG) is a specialty finance company founded in 1999 and headquartered in San Diego, California. The company operates as a leading debt recovery solutions provider, purchasing portfolios of defaulted consumer receivables at significant discounts to their face value and then working with consumers to collect on these debts. Since going public in July 1999, Encore has evolved from a domestic U.S. operation into a global enterprise with significant operations in both the United States and Europe, establishing itself as one of the largest players in the debt purchasing and collection industry.
Business
Encore Capital Group operates in the debt purchasing and collection industry, a specialized segment of financial services that involves acquiring portfolios of non-performing consumer debt from original creditors like banks and credit card companies. The company's core business model centers around purchasing these defaulted receivables at steep discounts—typically 10-20 cents on the dollar—and then employing various collection strategies to recover amounts owed by consumers. The company operates through two primary business segments that generate distinct revenue streams: 1. U.S. Operations (Midland Credit Management - MCM): This segment represents approximately 75-80% of the company's portfolio purchases and focuses on acquiring charged-off credit card debt, personal loans, and other consumer receivables from U.S. financial institutions. MCM has established relationships with major banks and credit card issuers, allowing it to purchase large portfolios of defaulted accounts. The U.S. market has been particularly favorable in recent years, with record-high credit card charge-off rates and increased lending activity creating substantial portfolio supply. 2. European Operations (Cabot Credit Management): Operating primarily in the United Kingdom with historical presence in other European markets, this segment accounts for roughly 20-25% of portfolio purchases. Cabot focuses on purchasing non-performing loans from European financial institutions, though the market has been more challenging with subdued consumer lending and increased competition affecting pricing and returns. The debt collection industry serves as a critical function in the broader financial ecosystem by helping original creditors remove non-performing assets from their balance sheets while providing consumers with structured repayment options. When banks and credit card companies experience high default rates, they typically charge off these accounts after 120-180 days of non-payment and then sell these portfolios to companies like Encore at significant discounts to focus on their core lending business.
Revenue model
Encore Capital Group generates revenue primarily through debt collection activities on portfolios it has purchased. The company's business model involves three key phases: portfolio acquisition, debt servicing, and collection optimization. The revenue generation process begins with portfolio purchasing, where Encore acquires defaulted consumer receivables from banks, credit card companies, and other financial institutions. These portfolios are purchased at substantial discounts to face value—typically ranging from 10-25 cents per dollar of outstanding debt. The company pays upfront cash for these portfolios and then works to collect the full amount owed over several years. Collection operations represent the primary revenue stream, generating income through various methods including call center operations, digital collection platforms, payment plan arrangements, and legal collection processes. The company employs both in-house collection teams and third-party collection agencies to maximize recovery rates. Recent earnings show global collections of approximately $2.16 billion annually, with collection multiples (total expected collections divided by purchase price) typically ranging from 2.1x to 2.3x. The company also provides contingent collection services and business process outsourcing to credit originators, though this represents a smaller portion of overall revenue compared to owned portfolio collections. Several factors significantly impact Encore's profit margins and operational efficiency. Positive margin drivers include rising credit card charge-off rates that increase portfolio supply, stable consumer payment behavior that maintains collection effectiveness, technological improvements in digital collection platforms, and favorable interest rate environments that reduce funding costs. Negative margin pressures come from increased competition for portfolio purchases that drives up acquisition costs, economic downturns that reduce consumer payment capacity, rising interest rates that increase debt servicing costs, and regulatory changes that may limit collection practices or reduce recovery rates.
Competitive moat
Encore Capital Group operates in a business with moderate competitive advantages but faces ongoing challenges that limit the strength of its economic moat. The company's primary competitive advantages stem from its established relationships with major financial institutions, operational scale, and specialized expertise in debt collection and consumer rehabilitation. The company's relationship-based moat with banks and credit card issuers provides some protection, as these institutions prefer working with established, compliant partners who can handle large portfolio transactions reliably. Encore's track record and operational scale allow it to bid on substantial portfolio packages that smaller competitors cannot handle, creating barriers to entry for new players. Additionally, the company has developed sophisticated data analytics and collection technologies that optimize recovery rates and improve operational efficiency. However, Encore's moat faces several significant limitations. The debt purchasing industry is highly competitive with numerous well-capitalized players competing for the same portfolio opportunities, which pressures pricing and returns. The business is also heavily regulated, with ongoing changes in consumer protection laws potentially limiting collection practices and reducing recovery rates. Economic sensitivity represents another vulnerability, as consumer payment behavior directly correlates with broader economic conditions. Competitive threats come from other large debt purchasers like PRA Group and AARC Acquisition, private equity-backed competitors with substantial capital resources, and potentially new entrants including fintech companies developing alternative collection methodologies. The industry also faces potential disruption from regulatory changes, shifts in consumer bankruptcy laws, or changes in bank charge-off practices that could reduce portfolio supply or alter market dynamics. The company's competitive position appears strongest in the U.S. market where it has established relationships and operational expertise, while its European operations face more intense competition and regulatory challenges that have pressured returns in recent years.
Risks & safety
Encore Capital Group presents moderate financial risk with some concerning leverage metrics but adequate liquidity and cash generation. • Debt and Solvency: High debt-to-equity ratio of 4.79x as of Q1 2025, though this is typical for the debt purchasing industry. Total debt of approximately $4.15 billion against $819 million in equity. Interest expense of ~$285 million annually represents significant fixed costs. • Liquidity Position: Cash and short-term investments of $187 million provides limited cushion. Free cash flow generation of $38 million in Q1 2025 and $127 million for full year 2024 demonstrates ability to service debt obligations. • Valuation Metrics: Trading at P/E ratio of 4.37x and P/B ratio of 1.0x based on Q1 2025 results, suggesting potential value opportunity. However, negative EBITDA in Q1 2025 of -$30 million raises concerns about near-term profitability. • Other Considerations: Business model requires continuous portfolio purchasing to maintain collections growth, creating ongoing capital requirements. Leverage target range of 2-3x indicates current levels are elevated but management expects improvement through earnings growth and debt reduction.
Recent development
Over the past several years, Encore Capital Group has undergone significant strategic repositioning focused on geographic concentration and operational optimization. The company has increasingly prioritized its U.S. operations while restructuring and reducing its European footprint. U.S. Market Expansion: The company has dramatically increased its focus on the U.S. market, with portfolio purchases growing from $556 million in 2022 to over $1 billion in 2024. This shift reflects the highly favorable U.S. market conditions, including record-high credit card charge-off rates and increased lending activity that has created substantial portfolio supply. Management has consistently emphasized that U.S. operations generate higher risk-adjusted returns compared to European markets. European Market Restructuring: Encore has undertaken significant restructuring of its European operations through Cabot Credit Management. The company exited the Italian NPL market entirely and reduced operations in Spain's secured NPL market. These moves reflect challenging market conditions in Europe, including subdued consumer lending, increased competition, and lower returns. The company also conducted a comprehensive review of older European portfolio vintages (2013-2019), resulting in reduced Estimated Remaining Collections forecasts. Technology and Operational Improvements: The company has invested heavily in digital collection capabilities and operational efficiency improvements. These investments have enabled MCM to achieve 20% collections growth while maintaining flat headcount, demonstrating improved productivity. The company has also reduced its reliance on legal collections, which now represent 35-36% of total collections compared to higher historical levels. Capital Allocation Strategy: Management has refined its capital allocation approach, explicitly prioritizing portfolio purchases in markets with the highest risk-adjusted returns while preparing to resume share repurchases as leverage ratios approach target levels. The company suspended share repurchases during the portfolio investment cycle but plans to resume them in 2025 as financial metrics improve.
ECPG company profile · for informational purposes only — not investment advice.
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