Encore Capital Group Inc

Encore Capital Group maintains a conservative capital structure with a debt-to-equity ratio of 0.0, indicating no reported interest-bearing debt relative to equity. The company holds $156.8 million in cash and equivalents against total liabilities of $4.36 billion, resulting in a low liquidity risk assessment. Operating cash flow stands at $153.2 million, which comfortably covers capital expenditures of $26.3 million, generating significant free cash flow. The current ratio is not explicitly provided, but the absence of debt and strong cash generation suggests adequate short-term solvency.

Profitability metrics demonstrate strong returns, with a return on equity (ROE) of 30.33% and a return on assets (ROA) of 5.55%. The company trades at a price-to-earnings ratio of 6.91 and an EV/EBITDA of 2.78, suggesting a valuation discount relative to broader market averages, though specific cohort medians are not provided for direct comparison. Net income of $256.8 million on revenue of $88.4 million indicates high operating leverage, although the operating income figure of $626.6 million appears inconsistent with the net income and revenue figures, potentially reflecting non-recurring items or accounting adjustments not detailed in the snapshot.

Segment and geographic revenue breakdowns are not provided in the available data, preventing an analysis of revenue concentration or regional exposure. The company’s activity is broadly defined as Consumer Finance, implying exposure to consumer credit cycles and regulatory environments governing debt collection.

Historical revenue and net income trends are not available in the input data, limiting the ability to assess growth trajectory or cyclicality. The latest normalized period shows revenue of $88.4 million, but without prior period comparisons, year-over-year growth cannot be calculated.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The company has 21.69 million basic and diluted shares outstanding, with no difference between the two, suggesting minimal dilutive impact from options or convertible securities in the current period.

Recent news events are limited to internal reconciler logs indicating coverage closure and analysis job initialization, with no material external news or filing observations reported. Analyst sentiment is moderately positive, with a mean recommendation of 2.25 (on a 1-5 scale) and a mean price target of $113.33, implying upside potential from the current market price of $94.45.

Encore Capital Group projects a 34.4% revenue increase to $1.77 billion in FY2026, signaling strong top-line growth momentum.

Analysts project 20% upside to a mean price target of $113.33, reflecting a consensus buy recommendation.

Operating income is forecast to surge 318.1% year-over-year to $625 million, demonstrating significant operational leverage.

Free cash flow is expected to rebound 290.9% to $259 million, indicating improved cash generation capabilities.

Long-term debt has risen to $4.0 billion, resulting in a high leverage band with a debt-to-equity ratio of 4.47.

The company reported net losses of $206 million in FY2024 and $139 million in FY2025, showing recent profitability volatility.

Cash conversion ratio of 0.52 is significantly below the cohort median of 1.43, suggesting weaker cash flow quality.

The firm faces medium credit risk, which could impact future loss provisions and overall financial stability.

Revenue $475.4M, +21,0% YoY; Operating income +42,2% YoY.

• ▍Revenue $475.4M, +21,0% YoY
• ▍Operating income +42,2% YoY
• ▍Net income +84,3% YoY
• ▍Free cash flow +87,2% YoY
• ▍Net margin 18.1%

Revenue $473.6M, +78,3% YoY; Operating income +220,9% YoY.

• ▍Revenue $473.6M, +78,3% YoY
• ▍Operating income +220,9% YoY
• ▍Net income +134,0% YoY
• ▍Free cash flow +134,1% YoY
• ▍Net margin 16.2%

Revenue $460.4M, +25,4% YoY; Operating income +63,2% YoY.

• ▍Revenue $460.4M, +25,4% YoY
• ▍Operating income +63,2% YoY
• ▍Net income +143,6% YoY
• ▍Free cash flow +132,6% YoY
• ▍Net margin 16.2%

Revenue $442.1M, +24,4% YoY; Operating income +48,0% YoY.

• ▍Revenue $442.1M, +24,4% YoY
• ▍Operating income +48,0% YoY
• ▍Net income +82,5% YoY
• ▍Free cash flow +85,1% YoY
• ▍Net margin 13.3%

Revenue $392.8M; Operating income $129.3M.

• ▍Revenue $392.8M
• ▍Operating income $129.3M
• ▍Net margin 11.9%

Revenue $265.6M; Operating income -$142.0M.

• ▍Revenue $265.6M
• ▍Operating income -$142.0M
• ▍Net margin -84.8%

Revenue $367.1M; Operating income $106.1M.

• ▍Revenue $367.1M
• ▍Operating income $106.1M
• ▍Net margin 8.3%

Revenue $355.3M; Operating income $101.8M.

• ▍Revenue $355.3M
• ▍Operating income $101.8M
• ▍Net margin 9.1%

Revenue $1.77B, +34,4% YoY; Operating income +318,1% YoY.

• ▍Revenue $1.77B, +34,4% YoY
• ▍Operating income +318,1% YoY
• ▍Net income +284,4% YoY
• ▍Free cash flow +290,9% YoY
• ▍Net margin 14.5%

Revenue $1.32B, +7,7% YoY; Operating income +804,1% YoY.

• ▍Revenue $1.32B, +7,7% YoY
• ▍Operating income +804,1% YoY
• ▍Net income +32,6% YoY
• ▍Free cash flow +28,3% YoY
• ▍Net margin -10.6%

Revenue $1.22B, −12,6% YoY; Operating income −96,4% YoY.

• ▍Revenue $1.22B, −12,6% YoY
• ▍Operating income −96,4% YoY
• ▍Net income −206,1% YoY
• ▍Free cash flow −191,2% YoY
• ▍Net margin -16.9%

Revenue $1.40B, −13,4% YoY; Operating income −25,9% YoY.

• ▍Revenue $1.40B, −13,4% YoY
• ▍Operating income −25,9% YoY
• ▍Net income −44,5% YoY
• ▍Free cash flow −43,5% YoY
• ▍Net margin 13.9%