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Globe and Mail
31-07-2025
- Business
- Globe and Mail
Encore Capital Group® Announces Findings of its Third Economic Freedom Study
SAN DIEGO, July 31, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Encore) (Nasdaq: ECPG), an international specialty finance company, today announced the findings of its third Economic Freedom Study. The latest study surveyed over 6,000 adults in Encore's largest markets, the United States and United Kingdom, about their feelings toward their personal finances and the economy. Respondents were asked what causes them the most financial stress and the best ways to address their challenges, including attitudes toward working with debt collection companies to resolve past-due debt. The latest study also examines credit score awareness and financial literacy. The research was commissioned by Encore and conducted by Morning Consult. A detailed report of the findings is available on Encore's website. Key highlights from the study include: Most U.S. and U.K. adults feel somewhat or very positive about their personal financial futures, but they are less optimistic about their respective national economies. Nearly half (49%) of U.S. adults say their outlook on the future of the national economy is somewhat or very negative, compared to just over two-thirds (67%) of U.K. adults. 'Being debt-free' was the most-selected definition of economic freedom for adults in both countries, chosen by 27% of both U.S. and U.K. adults. Being debt-free was the most-selected definition for every generation in both countries except U.K. Gen Z adults, among whom 'having the independence to do/buy what I want' was the most-selected definition (25%). While U.S. adults are more aware of their credit scores than U.K. adults, most adults in each country desire a free way to check their credit score. Over four in five U.S. adults (83%) say they know their credit score, compared to just over half (51%) of U.K. adults. Of those who say they know their credit score, roughly half or more in each country report having a 'good' or better rating. Nearly three in 10 (29%) U.S. adults and just under one in five (19%) U.K. adults report currently having past-due debt, especially younger and low-income adults. Most adults with past-due debt in both countries say it will take a long time to pay back most or all of their balance. Today, significantly more U.S. and U.K. adults are requesting help to repay past-due debt compared to the 2022 Encore Economic Freedom Study, and significantly more signal intentions to work with debt collection companies to resolve their debt. 'Our company supports consumers who are actively dealing with financial stress every day, which makes these findings especially important for us,' said Ashish Masih, Encore's President and CEO. 'By understanding how consumers are thinking and feeling about their finances, which priorities matter most to them, and how they plan to address past-due debt, we can better fulfill our Mission to help them on their path to economic freedom.' The survey found that as U.S. consumers are accumulating credit card debt at record levels, and U.K. consumers continue to feel pessimistic about their national economy, adults in both countries are facing high economic concern and are focused on building emergency funds. 'We continue to be focused on meeting consumers where they are, and we're well-positioned to help them,' Masih said. 'We lead with empathy, tailor solutions to pay off past-due debt to consumers' unique circumstances, always seek to understand the consumer's needs and provide access to support in times of hardship.' The survey's findings affirm Encore's approach to working with consumers. For example, about one-quarter (24%) of adults in both countries said that receiving a discount on debt owed would be most helpful to getting out of debt. Nearly the same number in both countries said having more time to pay off debt would be most helpful, followed by learning better financial habits. Midland Credit Management (MCM), Encore's U.S. subsidiary, published its Consumer Bill of Rights almost 15 years ago, and it remains the only one of its kind in the industry. It clearly defines how MCM will suspend collection activities when a consumer demonstrates that they are experiencing significant financial hardship due to medical issues, natural disasters, job loss or other challenges. Similarly, Cabot Credit Management, Encore's U.K. and European subsidiary, has a Sensitive Support Team in the United Kingdom, which includes specialists trained to work with consumers facing mental or physical illness resulting in significant financial hardship. The team's goal is to ensure a consumer's debts don't become a barrier to their physical or financial recovery or well-being. 'It is heartening to see consumers prioritizing being debt-free and showing a willingness to seek help, learn new financial skills and work with companies like Encore to achieve it,' Masih said. 'The approach we take with consumers, including working with them one-on-one and tailoring solutions to meet their unique needs and circumstances, aligns well with the findings of the study.' The Economic Freedom Study online survey was conducted from April 24-May 2, 2025, among 6,406 adults, including 3,192 U.S. adults and 3,214 U.K. adults. The U.S. and U.K. samples are weighted on age, gender, education, race/ethnicity and region to reflect the demographic makeup of their respective adult (18+) populations according to most recently available census data from each country. The margin of error for the total sample in each country is plus or minus 2 percentage points. About Encore Capital Group, Inc. Encore Capital Group® is an international specialty finance company that provides debt recovery solutions and other related services across a broad range of financial assets. Through our subsidiaries around the globe, Encore purchases or services portfolios of receivables from major banks, credit unions and utility providers. Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at
Yahoo
12-06-2025
- Business
- Yahoo
Is Encore Capital Group (ECPG) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. One stock to keep an eye on is Encore Capital Group (ECPG). ECPG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.13 right now. For comparison, its industry sports an average P/E of 9.72. Over the last 12 months, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 6.34. Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ECPG has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.42. Value investors will likely look at more than just these metrics, but the above data helps show that Encore Capital Group is likely undervalued currently. And when considering the strength of its earnings outlook, ECPG sticks out as one of the market's strongest value stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
26-05-2025
- Business
- Yahoo
Should Value Investors Buy Encore Capital Group (ECPG) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. One stock to keep an eye on is Encore Capital Group (ECPG). ECPG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.25. This compares to its industry's average Forward P/E of 8.48. Over the last 12 months, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 6.42. Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ECPG has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.4. Value investors will likely look at more than just these metrics, but the above data helps show that Encore Capital Group is likely undervalued currently. And when considering the strength of its earnings outlook, ECPG sticks out at as one of the market's strongest value stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15-05-2025
- Business
- Yahoo
Encore Capital Q1 Earnings Top Estimates on Higher Portfolio Purchases
Encore Capital Group, Inc. ECPG shares have gained 24.3% since it reported first-quarter 2025 results on May 7. The strong quarterly results benefited from rising collections and strong portfolio purchasing. However, higher expenses partially offset the upsides. ECPG reported first-quarter 2025 adjusted earnings per share (EPS) of $1.93, which beat the Zacks Consensus Estimate by 55.7%. The bottom line reported an improvement from 95 cents per share in the prior year. ECPG's revenues rose 19.6% year over year to $392.8 million. Also, the top line beat the consensus mark by 5.5%. Encore Capital Group Inc price-consensus-eps-surprise-chart | Encore Capital Group Inc Quote Total debt purchasing revenues rose 20.8% year over year in the quarter under review to $366.7 million. Servicing revenues increased 10.6% in the first quarter of 2025 to $22.5 million and beat the consensus mark of $20 million. Collections grew 18% year over year to $604.8 million and also beat the consensus mark of $583.3 million. Strong portfolio purchasing in the United States in the past couple of years and a stable collections environment in its key markets benefited the metric. Total operating expenses of $263.4 million rose 8% year over year due to an increase in salaries and employee benefits, the cost of legal collections, general and administrative expenses and other operating expenses. Interest expenses increased 26.5% year over year to $70.5 million in the quarter under review. Encore Capital's net income of $46.8 million increased 101% year over year. Global portfolio purchases of $367.9 million rose from $295.7 million a year ago. It deployed $316.4 million in the United States and the rest in Europe. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Encore Capital exited the first quarter with total assets of $5 billion, higher than $4.8 billion at 2024-end. Cash and cash equivalents amounted to $187.1 million in the first quarter, lower than $199.9 million at 2024-end. Borrowings increased to $3.8 billion from $3.7 billion as of Dec. 31, 2025. Total liabilities of $4.2 billion at the first-quarter end were higher than $4 billion at 2024-end. Total equity increased to $819.1 million from $767.3 million at 2024-end. Net cash provided by operating activities decreased 11.2% year over year in the first quarter of 2025 to $45.3 million. Encore Capital bought back $10 million worth of shares in the first quarter of 2025. Management still expects portfolio purchasing to surpass the 2024 figure of $1.35 billion in 2025 and collections to grow by around 11% to $2.4 billion in 2025. ECPG currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Finance space are Root Inc. ROOT, EverQuote Inc. EVER and Heritage Insurance Holdings Inc. HRTG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Root's current-year earnings of $1.11 per share has witnessed one upward revision in the past week against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 208.9%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 17.3% year-over-year growth. The Zacks Consensus Estimate for EverQuote's current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $640.3 million, suggesting 28% year-over-year growth. The Zacks Consensus Estimate for Heritage Insurance's current-year earnings of $3.25 per share has witnessed two upward revisions in the past week against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report EverQuote, Inc. (EVER) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report Root, Inc. (ROOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
