Encore Capital Group (FRA:ECP) Moat Score: 5/10 (As of Jun. 29, 2026)


FRA:ECP Encore Capital Group Inc FRA:ECP
67 GF Score
Price €75.00
GF Value €59.84
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Encore Capital Group Moat Score?

Encore Capital Group FRA:ECP -3.23% 67 Moat Score is 5 as of Jun. 29, 2026. GuruFocus rates FRA:ECP with a GF Score™ of 67/100 and a GF Value™ of €59.84 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 566 Credit Services companies, Encore Capital Group ranks better than 97.53% on this metric.

Encore Capital Group has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Encore Capital Group has Narrow Moat: Encore Capital Group Inc has a solid narrow moat due to its established market position and some customer switching costs. However, it lacks the extensive regulatory barriers or network effects needed for a wider moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Encore Capital Group might have Narrow Moat - Solid narrow moat.

Encore Capital Group  (FRA:ECP) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Encore Capital Group Moat Score Related Terms

FRA:ECP vs QFIN, EZPW, AGM.A: Moat Score Comparison

For the Credit Services subindustry, Encore Capital Group's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Encore Capital Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Encore Capital Group's Moat Score falls into.


FRA:ECP
67GF Score
Encore Capital Group Inc FRA:ECP
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Encore Capital Group (FRA:ECP) has a Moat Score of 5 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Encore Capital Group ranks #14 out of 566 companies in the Credit Services industry, placing it in the top 2.5%.
Is Encore Capital Group's Moat Score too high?
Encore Capital Group's current Moat Score is 5. Based on the distribution chart, Encore Capital Group ranks #14 out of 566 companies in the Credit Services industry, which is in the top quartile — a strong position 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 Moat Score compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #14 out of 566 companies for Moat Score. This places Encore Capital Group in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Credit Services company?
A good Moat Score depends on the Credit Services industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Encore Capital Group's current Moat Score is 5. 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 Moat Score is 5. Encore Capital Group's overall GF Score™ is 67/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Moat Score is 5 as of Jun. 29, 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:

  • Moat Score: 5
  • GF Value™: €59.84 vs. price of €75.00 (25.3% above fair value)
  • GF Score™: 67/100 with 10 warning signs

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 Business Description

Other Exchanges ECPG:USA
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.
67GF Score

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

€75.00
Price
€59.84
GF Value