Encore Capital GroupFRA:ECP -3.23%64 Current Ratio is 0.33 as of Mar. 2026, which is 14% above its 10-year median of 0.29. GuruFocus rates FRA:ECP with a GF Score™ of 64/100 and a GF Value™ of €59.84 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 394 Credit Services companies, Encore Capital Group ranks worse than 97.72% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Encore Capital Group's current ratio for the quarter that ended in Mar. 2026 was 0.33.
Encore Capital Group has a current ratio of 0.33. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Encore Capital Group has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Encore Capital Group's Current Ratio or its related term are showing as below:
FRA:ECP'
s Current Ratio Range Over the Past 10 Years
Min: 0.2 Med: 0.29 Max: 1.59
Current: 0.33
During the past 13 years, Encore Capital Group's highest Current Ratio was 1.59. The lowest was 0.20. And the median was 0.29.
FRA:ECP's Current Ratio is ranked worse than 97.72% of 394
companies
in the Credit Services industry
Industry Median: 4.985
vs FRA:ECP: 0.33
Encore Capital Group (FRA:ECP) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Encore Capital Group Current Ratio Related Terms
Encore Capital Group Current Ratio Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Current Ratio 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.
FRA:ECP vs AGM.A, EZPW, QFIN: Current Ratio Comparison
For the Credit Services subindustry, Encore Capital Group's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Current Ratio 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 Current Ratio of 0.33 as of Mar. 2026. This is 14% above median its historical median of 0.29. Over the past decade, Encore Capital Group's Current Ratio has ranged from 0.20 to 1.59. According to the industry distribution chart, Encore Capital Group ranks #385 out of 394 companies in the Credit Services industry, placing it in the top 97.7%.
Is Encore Capital Group's Current Ratio too high?
Encore Capital Group's current Current Ratio of 0.33 is 14% above median its 10-year median of 0.29. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 1.59. The Credit Services industry median Current Ratio is 4.99. Encore Capital Group's value of 0.33 is 93.4% below this industry median. Based on the distribution chart, Encore Capital Group ranks #385 out of 394 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Encore Capital Group has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Current Ratio compare to AGM.A and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #385 out of 394 companies for Current Ratio. This places Encore Capital Group in the lower half of its industry. The industry median Current Ratio is 4.99. Encore Capital Group's value of 0.33 is 93.4% below this benchmark. Historically, Encore Capital Group's own Current Ratio has ranged from 0.20 to 1.59 over the past decade. While the company's 10-year median is 0.29 vs. the industry median of 4.99, 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 Current Ratio for a Credit Services company?
The median Current Ratio among Credit Services companies is 4.99, based on 394 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Current Ratio of 0.33 is 93.4% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median Current Ratio is 4.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Current Ratio is 0.33, which is 14% above median its own 10-year median of 0.29. 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 €59.84, compared to a current price of €75.00 — trading 25.3% above its estimated fair value. The current Current Ratio is 0.33, which is 14% above median its 10-year median of 0.29 and 93.4% below the Credit Services industry median of 4.99. Encore Capital Group's overall GF Score™ is 64/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Current Ratio is 0.33 as of Mar. 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 €75.00 is trading 25.3% above its estimated GF Value™ of €59.84.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Current Ratio: 0.33 (14% above median its 10-year median of 0.29)
GF Value™: €59.84 vs. price of €75.00 (25.3% above fair value)
Industry Position: 93.4% below the Credit Services median (#385 of 394)
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.
64GF Score
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