Added to YB: 2026-07-20
Pitch date: 2026-07-16
ECPG [neutral]
Encore Capital Group, Inc.
Author Info
Undervalued and undercovered searches for undervalued stocks with little coverage. Sign up for the newsletter.
Company Info
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide.
Market Cap
$2.0B
Pitch Price
N/A
Price Target
N/A
Dividend
N/A
EV/EBITDA
7.98
P/E
7.19
EV/Sales
3.13
Sector
Consumer Finance
Category
value
The NPL Industry: Left for Dead, Antifragile, and Cheap. High Uncorrelated Returns? - Encore Capital Group, Inc.
ECPG (needs more research): US card debt buyer riding favorable supply cycle; card charge-offs >4%. 2025: net income $257M ($10.91/sh) vs $139M loss (Cabot one-off), ERC $9.68B (+14%), adj EBITDA doubled to $677M, ROE ~32%. 2026 guide: EPS ~$12 (+10-12%), first-ever buybacks (9% of shares). ~8x earnings. Question: overearning? Gap vs PRA intriguing.
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