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Upturn AI SWOT - About
ECPG 
Encore Capital Group Inc (ECPG)
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Upturn Advisory Summary
04/01/2025: ECPG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -62.05% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 812.14M USD | Price to earnings Ratio - | 1Y Target Price 59.75 |
Price to earnings Ratio - | 1Y Target Price 59.75 | ||
Volume (30-day avg) 423950 | Beta 1.73 | 52 Weeks Range 31.54 - 51.77 | Updated Date 03/31/2025 |
52 Weeks Range 31.54 - 51.77 | Updated Date 03/31/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -5.83 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -10.58% | Operating Margin (TTM) -5.66% |
Management Effectiveness
Return on Assets (TTM) 3.67% | Return on Equity (TTM) -16.34% |
Valuation
Trailing PE - | Forward PE 5.54 | Enterprise Value 4284560629 | Price to Sales(TTM) 0.62 |
Enterprise Value 4284560629 | Price to Sales(TTM) 0.62 | ||
Enterprise Value to Revenue 3.25 | Enterprise Value to EBITDA 22.7 | Shares Outstanding 23691300 | Shares Floating 23014194 |
Shares Outstanding 23691300 | Shares Floating 23014194 | ||
Percent Insiders 3.43 | Percent Institutions 114.78 |
Analyst Ratings
Rating 4.4 | Target Price 64.25 | Buy 1 | Strong Buy 3 |
Buy 1 | Strong Buy 3 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Encore Capital Group Inc
Company Overview
History and Background
Encore Capital Group, Inc. (ECPG) was founded in 1953 as a collection agency. It evolved into a debt buyer, acquiring portfolios of defaulted consumer debt. Over time, Encore has grown through acquisitions and international expansion.
Core Business Areas
- Debt Purchasing and Recovery: Encore acquires portfolios of defaulted consumer debt, primarily from banks, credit unions, and retailers. They then manage and recover these debts through various collection strategies.
- Consumer Finance: Through its Cabot Credit Management subsidiary, Encore provides credit management services and solutions to consumers, helping them manage their debt and improve their financial well-being.
Leadership and Structure
Ashish Masih is the President and CEO. The company has a typical corporate structure with a board of directors and various executive management teams overseeing different functions like operations, finance, and legal.
Top Products and Market Share
Key Offerings
- Purchased Debt Portfolios: Encore's primary product is the acquisition and management of defaulted consumer debt portfolios. Revenue is derived from recovering payments on these debts. Market share data specifically for debt purchasing is difficult to pinpoint due to its fragmented nature and private transactions. Competitors include PRA Group (PRAA) and Portfolio Recovery Associates (part of Synchrony Financial - SYF).
- Credit Management Services: Cabot Credit Management offers credit management solutions to consumers, including debt counseling, payment plans, and credit repair assistance. Market share data is limited, but competitors include credit counseling agencies and debt settlement companies.
Market Dynamics
Industry Overview
The debt purchasing industry is influenced by macroeconomic factors such as consumer debt levels, unemployment rates, and interest rates. Regulatory changes and compliance requirements also play a significant role.
Positioning
Encore is a major player in the debt purchasing industry, with a significant presence in both the US and Europe. Its competitive advantages include its scale, expertise in debt recovery, and established relationships with debt sellers.
Total Addressable Market (TAM)
The TAM for debt purchasing fluctuates with economic conditions and consumer borrowing habits. Estimates vary widely, but it can be billions of dollars annually. Encore's position depends on its capital deployment and ability to acquire portfolios at attractive prices.
Upturn SWOT Analysis
Strengths
- Scale and experience in debt purchasing
- Established relationships with debt sellers
- Diversified geographic presence
- Strong data analytics capabilities for debt valuation
Weaknesses
- Exposure to economic downturns and consumer credit cycles
- Regulatory scrutiny and compliance costs
- Reputational risk associated with debt collection practices
- Reliance on debt financing for acquisitions
Opportunities
- Expansion into new geographic markets
- Investment in technology to improve debt recovery efficiency
- Acquisition of smaller debt purchasing companies
- Partnerships with financial institutions to manage their debt portfolios
Threats
- Increased regulation of debt collection practices
- Economic recession leading to higher debt defaults
- Competition from other debt purchasers
- Changes in consumer behavior and payment patterns
Competitors and Market Share
Key Competitors
- PRAA
- SYF
Competitive Landscape
Encore competes with other debt purchasers primarily on price, expertise, and relationships. PRAA is its largest competitor, but Synchrony Financial's debt purchasing activities through its subsidiary, Portfolio Recovery Associates, represents another large competitor.
Major Acquisitions
Refinancia S.A. de C.V.
- Year: 2017
- Acquisition Price (USD millions): 112
- Strategic Rationale: Expanded presence in Mexico, added portfolio and collection experience, enhanced legal capabilities.
Growth Trajectory and Initiatives
Historical Growth: Encore's growth has been driven by acquisitions and organic debt recovery efforts. Past performance is subject to economic conditions and portfolio valuation.
Future Projections: Analyst projections vary and depend on macroeconomic assumptions. Future growth will depend on Encore's ability to acquire and manage debt portfolios effectively.
Recent Initiatives: Recent initiatives include investments in technology to improve debt recovery and expansion into new markets.
Summary
Encore Capital Group is a major player in the debt purchasing industry, demonstrating strength through its scale and experience. However, it faces risks related to economic cycles and regulatory scrutiny. Recent initiatives show a focus on technology and new markets, but its future hinges on effective debt portfolio management and risk mitigation.
Similar Companies
- PRAA
- SYF
- CAPONE
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q), Analyst Reports, Financial News Outlets (e.g., Yahoo Finance, Bloomberg)
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market share estimates are approximate and may vary. Financial data should be verified independently.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Encore Capital Group Inc
Exchange NASDAQ | Headquaters San Diego, CA, United States | ||
IPO Launch date 1999-06-30 | President, CEO & Director Mr. Ashish Masih | ||
Sector Financial Services | Industry Credit Services | Full time employees 7350 | Website https://www.encorecapital.com |
Full time employees 7350 | Website https://www.encorecapital.com | ||
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
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