ECPG (Encore Capital Group) EBIT: $671 Mil (TTM As of Mar. 2026)


ECPG Encore Capital Group Inc ECPG
69 GF Score
Price $87.07
GF Value $72.29
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Encore Capital Group EBIT?

Encore Capital Group ECPG +1.48% 69 EBIT is $671 Mil as of Mar. 2026. GuruFocus rates ECPG with a GF Score™ of 69/100 and a GF Value™ of $72.29 (Modestly Overvalued). The stock has 10 warning signs investors should review.

Encore Capital Group's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $182 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $671 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Encore Capital Group's annualized ROC % for the quarter that ended in Mar. 2026 was 10.40%. Encore Capital Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 539.23%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Encore Capital Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 11.84%.


Encore Capital Group  (NAS:ECPG) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Encore Capital Group's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=735.968 * ( 1 - 22.81% )/( (5099.654 + 5826.442)/ 2 )
=568.0936992/5463.048
=10.40 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5339.8 - 230.261 - ( 156.784 - max(0, 230.261 - 240.146+156.784))
=5099.654

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5450.561 - 252.277 - ( 227.204 - max(0, 933.544 - 305.386+227.204))
=5826.442

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Encore Capital Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=729.708/( ( (138.709 + max(-160.03, 0)) + (131.937 + max(-192.56, 0)) )/ 2 )
=729.708/( ( 138.709 + 131.937 )/ 2 )
=729.708/135.323
=539.23 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(21.11 + 0 + 49.121) - (230.261 + 0 + 0)
=-160.03

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.002 + 0 + 47.715) - (252.277 + 0 + -1.1368683772162E-13)
=-192.56

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Encore Capital Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=671.398/5672.914
=11.84 %

* 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 EBIT Related Terms


Encore Capital Group EBIT Historical Data

* Premium members only.

The historical data trend for Encore Capital Group's EBIT 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.

Encore Capital Group EBIT Chart

Encore Capital Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 606.19 464.30 21.61 141.57 616.63

Encore Capital Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 127.66 148.53 170.41 170.03 182.43

ECPG vs AGM.A, EZPW, QFIN: EBIT Comparison

For the Credit Services subindustry, Encore Capital Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Encore Capital Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Encore Capital Group's EV-to-EBIT falls into.


ECPG
69GF Score
Encore Capital Group Inc ECPG
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Encore Capital Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $671 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $671 Mil mean?
Encore Capital Group (ECPG) has a EBIT of $671 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Encore Capital Group.
Is Encore Capital Group's EBIT too high?
Encore Capital Group's current EBIT is $671 Mil. Overall, Encore Capital Group has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's EBIT compare to AGM.A and EZPW?
Encore Capital Group's EBIT of $671 Mil can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Credit Services company?
A good EBIT depends on the Credit Services industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Encore Capital Group. Encore Capital Group's current EBIT is $671 Mil. 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 (ECPG) is currently considered Modestly Overvalued. The stock's GF Value™ is $72.29, compared to a current price of $87.07 — trading 20.4% above its estimated fair value. The current EBIT is $671 Mil. Encore Capital Group's overall GF Score™ is 69/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Encore Capital Group (ECPG), the current EBIT is $671 Mil 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 (ECPG) Overvalued in 2026?

Based on GuruFocus' analysis, Encore Capital Group stock appears to be overvalued. The current stock price of $87.07 is trading 20.4% above its estimated GF Value™ of $72.29. GuruFocus considers Encore Capital Group to be Modestly Overvalued.

Key valuation signals for ECPG:

  • EBIT: $671 Mil
  • GF Value™: $72.29 vs. price of $87.07 (20.4% above fair value)
  • GF Score™: 69/100 with 10 warning signs

No single metric tells the full story. See the ECPG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Encore Capital Group Business Description

Other Exchanges ECP:Germany
Address 350 Camino De La Reina, Suite 100, San Diego, CA, USA, 92108
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.
69GF Score

Get the complete analysis for ECPG

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$87.07
Price
$72.29
GF Value