Encore Capital GroupECPG +1.48%69 Operating Margin % is 38.70% as of Mar. 2026, which is 24% above its 10-year median of 31.23. 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. Among 412 Credit Services companies, Encore Capital Group ranks better than 73.3% on this metric.
Encore Capital Group Inc has recorded a loss in operating income at least once over the past 3 years.
Encore Capital Group (NAS:ECPG) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Encore Capital Group Operating Margin % Related Terms
Encore Capital Group Operating Margin % Historical Data
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The historical data trend for Encore Capital Group's Operating 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: Operating Margin % Comparison
For the Credit Services subindustry, Encore Capital Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Operating Margin % falls into.
Encore Capital Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Encore Capital Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (ECPG) has a Operating Margin % of 38.70% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Encore Capital Group and its competitors. This is 24% above median its historical median of 31.23. Over the past decade, Encore Capital Group's Operating Margin % has ranged from 21.00 to 39.22. According to the industry distribution chart, Encore Capital Group ranks #110 out of 412 companies in the Credit Services industry, placing it in the top 26.7%.
Is Encore Capital Group's Operating Margin % too high?
Encore Capital Group's current Operating Margin % of 38.70% is 24% above median its 10-year median of 31.23. Over the past 10 years, this metric has ranged from a low of 21.00 to a high of 39.22. The Credit Services industry median Operating Margin % is 17.33. Encore Capital Group's value of 38.70% is 123.4% above this industry median. Based on the distribution chart, Encore Capital Group ranks #110 out of 412 companies in the Credit Services industry, which is above the industry midpoint. 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 Operating Margin % compare to AGM.A and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #110 out of 412 companies for Operating Margin %. This puts Encore Capital Group in the upper half of its industry. The industry median Operating Margin % is 17.33. Encore Capital Group's value of 38.70% is 123.4% above this benchmark. Historically, Encore Capital Group's own Operating Margin % has ranged from 21.00 to 39.22 over the past decade. While the company's 10-year median is 31.23 vs. the industry median of 17.33, 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 Operating Margin % for a Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Operating Margin % of 38.70% is 123.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Operating Margin % is 38.70%, which is 24% above median its own 10-year median of 31.23. 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 Operating Margin % is 38.70%, which is 24% above median its 10-year median of 31.23 and 123.4% above the Credit Services industry median of 17.33. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Encore Capital Group (ECPG), the current Operating Margin % is 38.70% 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:
Operating Margin %: 38.70% (24% above median its 10-year median of 31.23)
GF Value™: $72.29 vs. price of $87.07 (20.4% above fair value)
Industry Position: 123.4% above the Credit Services median (#110 of 412)
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.
69GF Score
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