Encore Capital GroupECPG +3.71%68 Gross Margin % is 55.81% as of Mar. 2026, which is 3% above its 10-year median of 54.16. GuruFocus rates ECPG with a GF Score™ of 68/100 and a GF Value™ of $72.30 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 387 Credit Services companies, Encore Capital Group ranks better than 53.49% on this metric.
Encore Capital Group Inc gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for Encore Capital Group's Gross Margin % or its related term are showing as below:
ECPG'
s Gross Margin % Range Over the Past 10 Years
Min: 45.85 Med: 54.16 Max: 57.48
Current: 55.05
During the past 13 years, the highestGross Margin % of Encore Capital Group was 57.48%. The lowest was 45.85%. And the median was 54.16%.
ECPG's Gross Margin % is ranked better than 53.49% of 387
companies
in the Credit Services industry
Industry Median: 51.88
vs ECPG: 55.05
Encore Capital Group had a gross margin of 55.81% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Encore Capital Group was -2.60% per year.
Encore Capital Group (NAS:ECPG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Encore Capital Group had a gross margin of 55.81% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Encore Capital Group Gross Margin % Related Terms
Encore Capital Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Gross Margin % 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.
ECPG vs AGM.A, EZPW, QFIN: Gross Margin % Comparison
For the Credit Services subindustry, Encore Capital Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Encore Capital Group (ECPG) has a Gross Margin % of 55.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Encore Capital Group and its competitors. This is near median its historical median of 54.16. Over the past decade, Encore Capital Group's Gross Margin % has ranged from 45.85 to 57.48. According to the industry distribution chart, Encore Capital Group ranks #180 out of 387 companies in the Credit Services industry, placing it in the top 46.5%.
Is Encore Capital Group's Gross Margin % too high?
Encore Capital Group's current Gross Margin % of 55.81% is near median its 10-year median of 54.16. Over the past 10 years, this metric has ranged from a low of 45.85 to a high of 57.48. The Credit Services industry median Gross Margin % is 51.88. Encore Capital Group's value of 55.81% is 7.6% above this industry median. Based on the distribution chart, Encore Capital Group ranks #180 out of 387 companies in the Credit Services industry, which is above the industry midpoint. 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 Gross Margin % compare to AGM.A and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #180 out of 387 companies for Gross Margin %. This puts Encore Capital Group in the upper half of its industry. The industry median Gross Margin % is 51.88. Encore Capital Group's value of 55.81% is 7.6% above this benchmark. Historically, Encore Capital Group's own Gross Margin % has ranged from 45.85 to 57.48 over the past decade. While the company's 10-year median is 54.16 vs. the industry median of 51.88, 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 Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Gross Margin % of 55.81% is 7.6% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Gross Margin % is 55.81%, which is near median its own 10-year median of 54.16. 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 $72.30, compared to a current price of $90.62 — trading 25.3% above its estimated fair value. The current Gross Margin % is 55.81%, which is near median its 10-year median of 54.16 and 7.6% above the Credit Services industry median of 51.88. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Encore Capital Group (ECPG), the current Gross Margin % is 55.81% 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 $90.62 is trading 25.3% above its estimated GF Value™ of $72.30.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for ECPG:
Gross Margin %: 55.81% (near median its 10-year median of 54.16)
GF Value™: $72.30 vs. price of $90.62 (25.3% above fair value)
Industry Position: 7.6% above the Credit Services median (#180 of 387)
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 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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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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