Encore Capital Group Stock Buy Hold or Sell Recommendation
| ECPG Stock | USD 49.38 0.32 0.65% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Encore Capital Group is 'Strong Hold'. Macroaxis provides Encore Capital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ECPG positions.
Check out Encore Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Encore and provide practical buy, sell, or hold advice based on investors' constraints. 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.
Encore |
Execute Encore Capital Buy or Sell Advice
The Encore recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Encore Capital Group. Macroaxis does not own or have any residual interests in Encore Capital Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Encore Capital's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Responds to the market | 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 |
Encore Capital Trading Alerts and Improvement Suggestions
| Encore Capital Group generated a negative expected return over the last 90 days | |
| Encore Capital Group has high likelihood to experience some financial distress in the next 2 years | |
| 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 1.4 B. | |
| Over 97.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from MacroaxisInsider: Acquisition by Jonathan Clark of 9978 shares of Encore Capital subject to Rule 16b-3 |
Encore Capital Returns Distribution Density
The distribution of Encore Capital's historical returns is an attempt to chart the uncertainty of Encore Capital's future price movements. The chart of the probability distribution of Encore Capital daily returns describes the distribution of returns around its average expected value. We use Encore Capital Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Encore Capital returns is essential to provide solid investment advice for Encore Capital.
| Mean Return | -0 | Value At Risk | -2.42 | Potential Upside | 2.57 | Standard Deviation | 1.77 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Encore Capital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Encore Stock Institutional Investors
| Shares | Goldman Sachs Group Inc | 2024-06-30 | 639.9 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 | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 426.9 K | Clearbridge Advisors, Llc | 2024-09-30 | 385.6 K | Northern Trust Corp | 2024-09-30 | 369.1 K | Ubs Group Ag | 2024-06-30 | 350.6 K | D. E. Shaw & Co Lp | 2024-09-30 | 303 K | Blackrock Inc | 2024-06-30 | 3.8 M | Vanguard Group Inc | 2024-09-30 | 2.6 M |
Encore Capital Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 34.9M | (3.2M) | 461K | (45.7M) | 14.5M | 7.7M | |
| Free Cash Flow | 205.1M | 278.3M | 269.7M | 173.5M | 101.3M | 89.2M | |
| Depreciation | 41.0M | 42.8M | 50.1M | 50.5M | 41.7M | 43.8M | |
| Other Non Cash Items | 62.4M | 83.8M | (154.9M) | (58.5M) | 354.4M | 372.1M | |
| Capital Expenditures | 39.6M | 34.6M | 33.4M | 37.2M | 51.7M | 54.3M | |
| Net Income | 168.9M | 212.5M | 351.2M | 194.6M | (206.5M) | (196.2M) | |
| End Period Cash Flow | 192.3M | 189.2M | 189.6M | 143.9M | 158.4M | 82.9M | |
| Investments | (169.6M) | 93.1M | 362.3M | (81.4M) | (360.3M) | (342.3M) | |
| Net Borrowings | 23.2M | (362.4M) | (252.9M) | 1.9M | 1.7M | 1.6M | |
| Change To Netincome | 53.9M | 119.5M | 97.9M | 96.5M | 111.0M | 116.5M |
Encore Capital Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Encore Capital or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Encore Capital's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Encore stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.15 | |
β | Beta against Dow Jones | 1.22 | |
σ | Overall volatility | 1.79 | |
Ir | Information ratio | -0.07 |
Encore Capital Volatility Alert
Encore Capital Group exhibits very low volatility with skewness of 0.65 and kurtosis of 1.21. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Encore Capital's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Encore Capital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Encore Capital Fundamentals Vs Peers
Comparing Encore Capital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Encore Capital's direct or indirect competition across all of the common fundamentals between Encore Capital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Encore Capital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Encore Capital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Encore Capital by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Encore Capital to competition |
| Fundamentals | Encore Capital | Peer Average |
| Return On Equity | -0.16 | -0.31 |
| Return On Asset | 0.0425 | -0.14 |
| Profit Margin | (0.14) % | (1.27) % |
| Operating Margin | 0.29 % | (5.51) % |
| Current Valuation | 4.47 B | 16.62 B |
| Shares Outstanding | 23.69 M | 571.82 M |
| Shares Owned By Insiders | 2.92 % | 10.09 % |
| Shares Owned By Institutions | 97.08 % | 39.21 % |
| Number Of Shares Shorted | 1.48 M | 4.71 M |
| Price To Earning | 7.43 X | 28.72 X |
| Price To Book | 1.11 X | 9.51 X |
| Price To Sales | 0.88 X | 11.42 X |
| Revenue | 1.22 B | 9.43 B |
| Gross Profit | 1.4 B | 27.38 B |
| EBITDA | 63.35 M | 3.9 B |
| Net Income | (206.49 M) | 570.98 M |
| Cash And Equivalents | 172.95 M | 2.7 B |
| Cash Per Share | 7.24 X | 5.01 X |
| Total Debt | 3.32 B | 5.32 B |
| Debt To Equity | 2.30 % | 48.70 % |
| Current Ratio | 13.36 X | 2.16 X |
| Book Value Per Share | 44.24 X | 1.93 K |
| Cash Flow From Operations | 152.99 M | 971.22 M |
| Short Ratio | 9.34 X | 4.00 X |
| Earnings Per Share | (7.83) X | 3.12 X |
| Price To Earnings To Growth | 0.17 X | 4.89 X |
| Target Price | 62.25 | |
| Number Of Employees | 7.4 K | 18.84 K |
| Beta | 1.56 | -0.15 |
| Market Capitalization | 1.17 B | 19.03 B |
| Total Asset | 4.63 B | 29.47 B |
| Retained Earnings | 1.05 B | 9.33 B |
| Working Capital | (480.49 M) | 1.48 B |
Note: Disposition of 1340 shares by Olle Laura of Encore Capital at 49.16 subject to Rule 16b-3 [view details]
Encore Capital Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Encore . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Encore Capital Buy or Sell Advice
When is the right time to buy or sell Encore Capital Group? Buying financial instruments such as Encore Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Encore Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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 55.731 | Quarterly Revenue Growth 0.186 | Return On Assets 0.0425 |
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.
Please note, there is a significant difference between Encore Capital's value and its price as these two are different measures arrived at by different 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.