Encore Capital GroupFRA:ECP -3.23%64 Pretax Margin % is 23.50% as of Mar. 2026, which is 81% above its 10-year median of 12.95. GuruFocus rates FRA:ECP with a GF Score™ of 64/100 and a GF Value™ of €59.84 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 533 Credit Services companies, Encore Capital Group ranks better than 52.35% on this metric.
The historical rank and industry rank for Encore Capital Group's Pretax Margin % or its related term are showing as below:
FRA:ECP'
s Pretax Margin % Range Over the Past 10 Years
Min: -14.74 Med: 12.95 Max: 27.04
Current: 20.93
FRA:ECP's Pretax Margin % is ranked better than 52.35% of 533
companies
in the Credit Services industry
Industry Median: 20.02
vs FRA:ECP: 20.93
Encore Capital Group (FRA:ECP) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Encore Capital Group Pretax Margin % Related Terms
Encore Capital Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Pretax 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.
FRA:ECP vs AGM.A, EZPW, QFIN: Pretax Margin % Comparison
For the Credit Services subindustry, Encore Capital Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Pretax 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.
Encore Capital Group (FRA:ECP) has a Pretax Margin % of 23.50% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Encore Capital Group and its competitors. This is 81% above median its historical median of 12.95. According to the industry distribution chart, Encore Capital Group ranks #254 out of 533 companies in the Credit Services industry, placing it in the top 47.7%.
Is Encore Capital Group's Pretax Margin % too high?
Encore Capital Group's current Pretax Margin % of 23.50% is 81% above median its 10-year median of 12.95. The Credit Services industry median Pretax Margin % is 20.02. Encore Capital Group's value of 23.50% is 17.4% above this industry median. Based on the distribution chart, Encore Capital Group ranks #254 out of 533 companies in the Credit Services industry, which is above the industry midpoint. Overall, Encore Capital Group has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Pretax Margin % compare to AGM.A and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #254 out of 533 companies for Pretax Margin %. This puts Encore Capital Group in the upper half of its industry. The industry median Pretax Margin % is 20.02. Encore Capital Group's value of 23.50% is 17.4% above this benchmark. While the company's 10-year median is 12.95 vs. the industry median of 20.02, 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 Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 20.02, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Pretax Margin % of 23.50% is 17.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Pretax Margin % is 20.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Pretax Margin % is 23.50%, which is 81% above median its own 10-year median of 12.95. 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 Pretax Margin % is 23.50%, which is 81% above median its 10-year median of 12.95 and 17.4% above the Credit Services industry median of 20.02. Encore Capital Group's overall GF Score™ is 64/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Pretax Margin % is 23.50% 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 €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:
Pretax Margin %: 23.50% (81% above median its 10-year median of 12.95)
GF Value™: €59.84 vs. price of €75.00 (25.3% above fair value)
Industry Position: 17.4% above the Credit Services median (#254 of 533)
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.
64GF Score
Get the complete analysis for FRA:ECP
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:ECP has been successfully added to your 
