Encore Capital Group, Inc. (NASDAQ:ECPG)

CAPS Rating: 4 out of 5

The Company is a systems-driven purchaser and manager of charged-off consumer receivable portfolios and through its wholly owned subsidiary Ascension Capital Group, Inc., a provider of bankruptcy services to the finance industry.

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Member Avatar tomi1970 (< 20) Submitted: 8/23/2014 8:21:50 PM : Underperform Start Price: $44.37 ECPG Score: +6.18

They don't seem to be as efficient as their competitors. Even with a low PE. Not going up anytime soon. I value this one at $22 at best

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Member Avatar Sicb (21.16) Submitted: 10/10/2013 5:15:12 PM : Outperform Start Price: $47.72 ECPG Score: -32.21

Encore Capital Group, Inc. (Encore) is engaged in consumer debt buying and recovery. Encore purchases portfolios of defaulted consumer receivables at deep discounts to face value and use a variety of operational channels to maximize its collections from these portfolios. The Company manages its receivables by partnering with individuals, as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, auto finance companies, and telecommunication companies, and may also include receivables subject to bankruptcy proceedings, or consumer bankruptcy receivables. In July 2013, Encore Capital Group Inc closed its acquisition of 50.1% of the equity interest in Janus Holdings Luxembourg S.a.r.l. Effective July 2, 2013, Encore acquired a 50.1% interest in Cabot Credit Management Ltd, from JC Flowers & Co LLC.

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Member Avatar mikejmonahan (32.96) Submitted: 2/23/2013 10:31:35 AM : Outperform Start Price: $31.98 ECPG Score: -0.68

Based on James O'Shaughnessy et al.

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Member Avatar EclecticRecluse (80.20) Submitted: 5/5/2011 4:31:17 AM : Outperform Start Price: $29.09 ECPG Score: -6.05

Low PEG and P/E

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Member Avatar CranDan (77.54) Submitted: 2/16/2010 11:59:06 AM : Underperform Start Price: $18.05 ECPG Score: -49.76

Encore Capital Group had great earnings in 2009 but will struggle significantly in 2010 and thus I expect their stock price to underperform once 1st quarter earnings are released.

Encore generated about 45% of their revenue and collections from their litigation channel which uses outside attorneys to collect on their behalf.

In December of 2009 the largest collection litigation attorney in the US (Axiant LLC) declared bankruptcy and was required by the State of Maryland to suspend all collections until futher notice. This means that Encore will not be able to generate any collections from one of the largest attorney networks during the best collection period of the year (first quarter when people get their tax returns). Couple this lack of collections with expectations from legal collections and you should expect both a collections short-fall this year but in addition collections misses on portfolios which will result in portfolio impairments. This combination does not bode for a good year for Encore Capital Group.

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Member Avatar LatePlay (< 20) Submitted: 4/30/2009 1:40:46 AM : Underperform Start Price: $8.46 ECPG Score: -274.77

profit taking

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Member Avatar AntonChigurh (< 20) Submitted: 6/8/2008 12:03:51 PM : Outperform Start Price: $10.58 ECPG Score: +252.06

This is a company we are loathe to invest in. It upsets our sense of propriety and human decency - but then we remember we are a supposed psychopath. So here goes: Encore Capital Group buys charged off consumer credit receivables for pennies on the dollar and tries to collect a few more cents than they paid for the chargeoffs. SImple as that. The last quarter was good, and I think there is some momentum going forward. A business like this is only as good as its collectors, who probably fall somewhere between used car salesmen and mortgage brokers at the top end of the ethically challenged spectrum. No matter - God will sort it out later.

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Member Avatar autumnlake1970 (51.13) Submitted: 5/1/2008 12:22:20 PM : Outperform Start Price: $7.97 ECPG Score: +388.95

Have heard setting up bill collections in India is the new wave of the future. Article mentioned owner has no plans for new growth in US, only India. Stock performing well since purchase

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Member Avatar kittee3 (< 20) Submitted: 4/24/2008 2:46:40 PM : Outperform Start Price: $6.63 ECPG Score: +498.62

high layoffs lead to no money so increase use of credit cards for food, gas, bill pay of cell/internet/cable all add up. eventually unable to pay credit card so it goes delinquent.

enter the new bredd of India workers to collect debt-- less than 1% (425 p/month base plus bonuses) as opposed to 6500 month US worker I ALREADY SEE A PROFIT and not one dime collected yet.

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Member Avatar hamiltt (86.28) Submitted: 3/13/2008 12:47:00 AM : Outperform Start Price: $7.26 ECPG Score: +429.32

.

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Member Avatar zindallas (26.15) Submitted: 2/15/2007 3:24:59 PM : Outperform Start Price: $10.71 ECPG Score: +253.06

Tom Brown owns 17% of this baby in his Second Curve Capital fund! Stock's recent softness provides nice entry point. A second class player in this space - certainly relative to PRAA, but a decent value play and a takeover target as management is exploring strategic alternatives.

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Member Avatar ArchimedesPie (< 20) Submitted: 10/24/2006 11:36:13 PM : Outperform Start Price: $13.80 ECPG Score: +153.74

Buyout possibility

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Member Avatar jm1234 (< 20) Submitted: 10/4/2006 11:08:11 AM : Outperform Start Price: $12.95 ECPG Score: +169.13

Effective competitor in the purchasing of charged off credit card receivables, likely to be purchased in a management-led deal in the next few months as the conclusion to a process reviewing strategic alternatives.

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Member Avatar reinhs (62.46) Submitted: 8/3/2006 9:36:43 PM : Underperform Start Price: $12.00 ECPG Score: -188.99

Unless this company does a major turnaround or gets entirely new management, they are going to be in a lot of trouble. Huge shame honestly because they had huge potential before current management took over...

Results 1 - 14 of 14

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