ECPG

Financial Services

Encore Capital Group, Inc. · Financial - Mortgages · $2B

UQS Score — Balanced Preset
54.4
Good

Encore Capital Group, Inc. scores 54.4/100 using the Balanced preset.

UQS vs Financial Services Sector
ECPG
54.4
Sector avg
39.7
Quality
Strong
Moat
Weak
Growth
Neutral
Risk
Weak
Valuation
Attractive

What is Encore Capital Group, Inc.?

Encore Capital Group is a specialty finance company focused on purchasing and managing portfolios of defaulted consumer receivables. Headquartered in San Diego, California, it operates across multiple markets worldwide, helping consumers work toward financial recovery.

Encore buys portfolios of defaulted consumer debt at deep discounts to face value, then works directly with individuals to help them repay their obligations over time. The company also offers early-stage collection services, business process outsourcing, contingent collection, and portfolio management services for credit originators dealing with non-performing loans — generating revenue through the spread between purchase price and recovered amounts.

Encore Capital Group was incorporated in 1999 and is based in San Diego, California.

  • Defaulted consumer receivables purchasing
  • Debt recovery and repayment solutions
  • Business process outsourcing for credit originators
  • Contingent and early-stage collection services

Is ECPG a Good Stock to Buy?

UQS Score rates ECPG as Good overall, reflecting a mixed profile across its five pillars.

Encore's Quality pillar stands out as Strong, suggesting the business generates returns that hold up relative to peers in the specialty finance space. Valuation is rated Attractive, meaning the stock may not be pricing in the full picture of the underlying business.

The Moat and Risk pillars both register as Weak, pointing to limited competitive differentiation and meaningful exposure to credit cycle and regulatory headwinds.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does ECPG pay dividends?

No — Encore Capital Group, Inc. does not currently pay a dividend.

Encore Capital Group does not currently pay a dividend. As a specialty finance company that deploys capital into purchasing debt portfolios, the business tends to reinvest available resources into acquiring new receivables and expanding its recovery operations rather than returning cash to shareholders through distributions.

When does ECPG report earnings?

Encore Capital Group reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

Results in recent periods have reflected the dynamics of the debt purchasing market — including portfolio acquisition volumes, collection performance, and funding costs. The interplay between credit availability and consumer repayment behavior shapes quarterly outcomes meaningfully.

For the most recent quarter's results and guidance, visit Encore Capital Group's investor relations page directly.

ECPG Price History

+76.6% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Encore Capital Group, Inc.?

$
Today it would be worth
$21,267
That's a +113% total return, or +16.3% annualized.

Based on Encore Capital Group, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

ECPG Long-term Outlook

The Growth pillar for ECPG sits at Neutral, suggesting the company is expanding at a pace broadly in line with sector expectations rather than outpacing peers. The Weak Risk rating introduces uncertainty around how the business performs through credit cycle turns or regulatory shifts. The Attractive Valuation label, however, indicates the market may be discounting some of that risk already.

Growth drivers

  • Expanding supply of non-performing loan portfolios during credit stress periods
  • International market presence providing diversification beyond the US consumer debt market
  • Operational scale in collections and servicing that supports portfolio throughput

Key risks

  • Regulatory changes affecting debt collection practices in key markets
  • Credit cycle deterioration reducing recovery rates on purchased portfolios
  • Rising funding costs compressing the spread between acquisition price and recoveries

ECPG vs Peers

Encore Capital operates in a niche corner of financial services, but several other specialty finance names offer a useful point of comparison for investors evaluating ECPG.

WDECPG scores higher
Walker & Dunlop, Inc.

Walker & Dunlop focuses on commercial real estate finance and advisory rather than consumer debt recovery, giving it a different credit risk profile and revenue model.

MKP.TOECPG scores higher
MCAN Mortgage Corporation

MCAN operates as a Canadian mortgage investment corporation, concentrating on residential and commercial mortgage lending rather than purchasing distressed consumer receivables.

VELECPG scores higher
Velocity Financial, Inc.

Velocity Financial specializes in investor real estate loans, targeting a property-backed lending niche that differs meaningfully from Encore's unsecured consumer debt focus.

Frequently Asked Questions

What does Encore Capital Group do?

Encore Capital Group purchases portfolios of defaulted consumer debt at discounts to face value, then works with those consumers to help them repay over time. The company also provides collection outsourcing and portfolio management services to credit originators handling non-performing loans.

Does ECPG pay dividends?

No, Encore Capital Group does not currently pay a dividend. The company reinvests capital into acquiring new debt portfolios and expanding its recovery operations rather than distributing cash to shareholders.

When does ECPG report earnings?

Encore Capital reports on a quarterly cadence, as is standard for US-listed companies. For the exact schedule and most recent results, check the investor relations section of Encore Capital's official website.

Is ECPG a good stock to buy?

UQS Score rates ECPG as Good overall. The Quality pillar is Strong and Valuation is Attractive, but the Moat and Risk pillars are both Weak. Whether that profile suits your portfolio depends on your own risk tolerance and investment goals — the full pillar breakdown is available to Pro members.

Is ECPG overvalued?

Based on the UQS Valuation pillar, ECPG is rated Attractive, suggesting the market price may not fully reflect the underlying business quality. That said, Valuation is just one of five pillars — the Risk and Moat ratings are worth weighing alongside it.

How does ECPG compare to its competitors?

Encore Capital occupies a distinct niche in consumer debt purchasing. Peers like Walker & Dunlop, MCAN Mortgage, and Velocity Financial operate in real estate and mortgage lending, making direct comparisons limited. UQS Pro members can view side-by-side pillar scores for a structured comparison.

What is ECPG's market cap bracket?

Encore Capital Group is classified as a small-cap company. This places it in a segment of the market that can offer growth potential but may also carry higher volatility and lower liquidity compared to large- or mega-cap peers.

Who founded Encore Capital Group?

Encore Capital Group was incorporated in 1999. For detailed founding history and executive background, the company's official investor relations page and public filings are the most reliable sources.

Is ECPG a long-term quality investment?

As a long-term quality indicator, the UQS Score rates ECPG as Good. The Strong Quality pillar is a positive signal for durability, but the Weak Moat and Risk ratings suggest investors should monitor competitive positioning and credit cycle exposure over time. The full analysis is available to Pro members.

What is the main competitive advantage of Encore Capital Group?

Encore's scale in purchasing and servicing defaulted consumer receivables — built over more than two decades — provides operational expertise and data advantages in pricing portfolios. However, the UQS Moat pillar rates this as Weak, indicating the structural advantage may be limited relative to the broader financial services sector.

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Pro Analysis

ECPG — Score History

4550556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 22 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202654.489.023.058.52.795.5-3.7
May 3, 202658.182.923.058.138.794.4+0.1
May 1, 202658.082.923.058.138.794.00.0
Apr 26, 202658.082.923.058.138.794.2-0.1
Apr 25, 202658.182.923.058.138.794.5-0.1
Apr 24, 202658.283.023.058.138.795.40.0
Apr 23, 202658.283.023.058.138.795.2-0.1
Apr 22, 202658.383.323.058.138.795.40.0
Apr 21, 202658.383.323.058.138.795.6-0.2
Apr 19, 202658.583.723.058.138.795.60.0

ECPG — Pillar Breakdown

Quality

89.0/100 (25%)

Encore Capital Group, Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

58.5/100 (20%)

Encore Capital Group, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendStrong

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

2.7/100 (15%)

Encore Capital Group, Inc. presents elevated risk with concerns around leverage or financial stability.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

95.5/100 (15%)

Encore Capital Group, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

23/100 (25%)

Encore Capital Group, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ECPG.

Score Composition

Quality
89.0×25%22.3
Growth
58.5×20%11.7
Risk
2.7×15%0.4
Valuation
95.5×15%14.3
Moat
23.0×25%5.8
Total
54.4Good

Financial Data

More Stock Analysis

How is the ECPG UQS Score Calculated?

The UQS (Unified Quality Score) for Encore Capital Group, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Encore Capital Group, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Encore Capital Group, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.