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Encore Capital GroupFRA:ECP +1.82%67 Cash-to-Debt is 0.04 as of Jun. 2026, which is 33% below its 10-year median of 0.06. GuruFocus rates FRA:ECP with a GF Score™ of 67/100 and a GF Value™ of €64.61 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 524 Credit Services companies, Encore Capital Group ranks worse than 79.58% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Encore Capital Group's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.04.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Encore Capital Groupcouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Encore Capital Group's Cash-to-Debt or its related term are showing as below:
FRA:ECP'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.04 Med: 0.06 Max: 0.09
Current: 0.04
During the past 13 years, Encore Capital Group's highest Cash to Debt Ratio was 0.09. The lowest was 0.04. And the median was 0.06.
FRA:ECP's Cash-to-Debt is ranked worse than 79.58% of 524
companies
in the Credit Services industry
Industry Median: 0.19
vs FRA:ECP: 0.04
Encore Capital Group (FRA:ECP) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Encore Capital Group Cash-to-Debt Related Terms
Encore Capital Group Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:ECP vs EZPW, WU, AGM.A: Cash-to-Debt Comparison
For the Credit Services subindustry, Encore Capital Group's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Encore Capital Group Cash-to-Debt vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Encore Capital Group (FRA:ECP) has a Cash-to-Debt of 0.04 as of Jun. 2026. This is 33% below median its historical median of 0.06. Over the past decade, Encore Capital Group's Cash-to-Debt has ranged from 0.04 to 0.09. According to the industry distribution chart, Encore Capital Group ranks #417 out of 524 companies in the Credit Services industry, placing it in the top 79.6%.
Is Encore Capital Group's Cash-to-Debt too high?
Encore Capital Group's current Cash-to-Debt of 0.04 is 33% below median its 10-year median of 0.06. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 0.09. The Credit Services industry median Cash-to-Debt is 0.19. Encore Capital Group's value of 0.04 is 78.9% below this industry median. Based on the distribution chart, Encore Capital Group ranks #417 out of 524 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Encore Capital Group has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Cash-to-Debt compare to EZPW and WU?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #417 out of 524 companies for Cash-to-Debt. This places Encore Capital Group in the lower half of its industry. The industry median Cash-to-Debt is 0.19. Encore Capital Group's value of 0.04 is 78.9% below this benchmark. Historically, Encore Capital Group's own Cash-to-Debt has ranged from 0.04 to 0.09 over the past decade. While the company's 10-year median is 0.06 vs. the industry median of 0.19, Encore Capital Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Credit Services company?
The median Cash-to-Debt among Credit Services companies is 0.19, based on 524 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Cash-to-Debt of 0.04 is 78.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median Cash-to-Debt is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Cash-to-Debt is 0.04, which is 33% below median its own 10-year median of 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encore Capital Group stock overvalued right now?
Based on GuruFocus' analysis, Encore Capital Group (FRA:ECP) is currently considered Modestly Overvalued. The stock's GF Value™ is €64.61, compared to a current price of €84.00 — trading 30% above its estimated fair value. The current Cash-to-Debt is 0.04, which is 33% below median its 10-year median of 0.06 and 78.9% below the Credit Services industry median of 0.19. Encore Capital Group's overall GF Score™ is 67/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Cash-to-Debt is 0.04 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Encore Capital Group (FRA:ECP) Overvalued in 2026?
Based on GuruFocus' analysis, Encore Capital Group stock appears to be overvalued.
The current stock price of €84.00 is trading 30% above its estimated GF Value™ of €64.61.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Cash-to-Debt: 0.04 (33% below median its 10-year median of 0.06)
GF Value™: €64.61 vs. price of €84.00 (30% above fair value)
Industry Position: 78.9% below the Credit Services median (#417 of 524)
No single metric tells the full story. See the FRA:ECP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encore Capital Group Inc is an international specialty finance company engaged in providing debt recovery solutions and other related services for consumers across a broad range of financial assets. It mainly purchases portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals to repay their obligations and work toward financial recovery. The company also provides debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. It has only one reportable segment, debt purchasing and recovery. Geographically, the company generates maximum revenue from its business in the United States, followed by the United Kingdom, Europe, and other regions.
67GF Score
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