Home Sectors Financial Services Stock Valuation: Encore Capital Group Inc (NASDAQ: ECPG)

Stock Valuation: Encore Capital Group Inc (NASDAQ: ECPG)


Encore Capital Group Inc is part of the financial services sector and trades as part of the asset management industry. The company CEO is Ashish Masih. Encore Capital Group Inc is a specialty finance company. The Company provides debt recovery solutions for consumers and property owners across a broad range of financial assets.

Previous Intraday Trading Performance:

The ECPG stock showed a previous change of 3.06% with an open at 26.58 and a close of 27.25. It reached an intraday high of 27.30 and a low of 26.25.

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The stock has a market cap of $840.7m with 30.9m shares outstanding, of which the float is 28.6m shares. Trading volume reached 465,094 shares compared to its average volume of 348,101 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Encore Capital Group Inc shares returned 11.73% and in the past 30 trading days it returned -1.87%. Over three months, it changed -15.43%. In one year it has changed -37.36% and within that year its 52-week high was 47.80 and its 52-week low was 20.38. ECPG stock is 33.71% above its 52 Week Low.

Our calculations show a 200 day moving average of 35.77 and a 50 day moving average of 25.32. Currently ECPG stock is trading -23.82% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 3.15 that ended on 31st of December 2017, which according to the previous close, that is a PE of 8.65. Based on 5 analyst estimates, the consensus EPS for the next quarter is 1.24. The TTM EPS is 4.55, which comes to a TTM PE of 5.99. Historically, the PE high was 19.30 and the PE low was 5.99. If the stock reached its PE low, that would represent a price of 27.25, which is a decrease of -0.00%.

The following are the last four quarter reported earnings per share:
09-30-2018:  1.19
06-30-2018:  1.33
03-31-2018:  0.98
12-31-2017:  1.05

Base on our calculations, the intrinsic value per share is 30.05, which means it is possibly undervalued and has a margin of safety of 9.31%

Indicators to Watch:

Based on the latest filings, there is 170.20% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 1.86

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.14%, return on assets is 1.86%, profit margin is 7.33%, price-to-sales is 0.94 and price-to-book is 1.00.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 2  :Past Performance Score
 1  :Financial Strength Score
 3  :Future Growth Score
 0  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.