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Encore Capital GroupFRA:ECP -0.65%68 Debt-to-Equity is 3.90 as of Mar. 2026, which is 4% above its 10-year median of 3.75. GuruFocus rates FRA:ECP with a GF Score™ of 68/100 and a GF Value™ of €62.32 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 456 Credit Services companies, Encore Capital Group ranks worse than 80.04% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Encore Capital Group's Debt-to-Equity or its related term are showing as below:
FRA:ECP'
s Debt-to-Equity Range Over the Past 10 Years
Min: 2 Med: 3.75 Max: 5.92
Current: 3.9
During the past 13 years, the highest Debt-to-Equity Ratio of Encore Capital Group was 5.92. The lowest was 2.00. And the median was 3.75.
FRA:ECP's Debt-to-Equity is ranked worse than 80.04% of 456
companies
in the Credit Services industry
Industry Median: 1.235
vs FRA:ECP: 3.90
Encore Capital Group (FRA:ECP) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Encore Capital Group Debt-to-Equity Related Terms
Encore Capital Group Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Debt-to-Equity 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 QFIN, EZPW, AGM.A: Debt-to-Equity Comparison
For the Credit Services subindustry, Encore Capital Group's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Debt-to-Equity 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 Debt-to-Equity of 3.90 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Encore Capital Group and its competitors. This is near median its historical median of 3.75. Over the past decade, Encore Capital Group's Debt-to-Equity has ranged from 2.00 to 5.92. According to the industry distribution chart, Encore Capital Group ranks #365 out of 456 companies in the Credit Services industry, placing it in the top 80%.
Is Encore Capital Group's Debt-to-Equity too high?
Encore Capital Group's current Debt-to-Equity of 3.90 is near median its 10-year median of 3.75. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 5.92. The Credit Services industry median Debt-to-Equity is 1.24. Encore Capital Group's value of 3.90 is 215.8% above this industry median. Based on the distribution chart, Encore Capital Group ranks #365 out of 456 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Encore Capital Group has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Debt-to-Equity compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #365 out of 456 companies for Debt-to-Equity. This places Encore Capital Group in the lower half of its industry. The industry median Debt-to-Equity is 1.24. Encore Capital Group's value of 3.90 is 215.8% above this benchmark. Historically, Encore Capital Group's own Debt-to-Equity has ranged from 2.00 to 5.92 over the past decade. While the company's 10-year median is 3.75 vs. the industry median of 1.24, Encore Capital Group has consistently been above 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 Debt-to-Equity for a Credit Services company?
The median Debt-to-Equity among Credit Services companies is 1.24, based on 456 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Debt-to-Equity of 3.90 is 215.8% above 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Debt-to-Equity is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Debt-to-Equity is 3.90, which is near median its own 10-year median of 3.75. 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 €62.32, compared to a current price of €77.00 — trading 23.6% above its estimated fair value. The current Debt-to-Equity is 3.90, which is near median its 10-year median of 3.75 and 215.8% above the Credit Services industry median of 1.24. Encore Capital Group's overall GF Score™ is 68/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Debt-to-Equity is 3.90 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 €77.00 is trading 23.6% above its estimated GF Value™ of €62.32.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Debt-to-Equity: 3.90 (near median its 10-year median of 3.75)
GF Value™: €62.32 vs. price of €77.00 (23.6% above fair value)
Industry Position: 215.8% above the Credit Services median (#365 of 456)
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.
68GF Score
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