Encore Capital GroupFRA:ECP +3.27%65 Return-on-Tangible-Asset is 7.14% as of Mar. 2026, which is 88% above its 10-year median of 3.80. GuruFocus rates FRA:ECP with a GF Score™ of 65/100 and a GF Value™ of €62.21 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 544 Credit Services companies, Encore Capital Group ranks better than 85.66% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Encore Capital Group's annualizedNet Income for the quarter that ended in Mar. 2026 was €298 Mil. Encore Capital Group's average total tangible assets for the quarter that ended in Mar. 2026 was €4,179 Mil. Therefore, Encore Capital Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.14%.
The historical rank and industry rank for Encore Capital Group's Return-on-Tangible-Asset or its related term are showing as below:
FRA:ECP'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -5.37 Med: 3.8 Max: 9.25
Current: 6.29
During the past 13 years, Encore Capital Group's highest Return-on-Tangible-Asset was 9.25%. The lowest was -5.37%. And the median was 3.80%.
FRA:ECP's Return-on-Tangible-Asset is ranked better than 85.66% of 544
companies
in the Credit Services industry
Industry Median: 1.93
vs FRA:ECP: 6.29
Encore Capital Group (FRA:ECP) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Encore Capital Group Return-on-Tangible-Asset Related Terms
Encore Capital Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Chart
FRA:ECP vs QFIN, EZPW, AGM.A: Return-on-Tangible-Asset Comparison
For the Credit Services subindustry, Encore Capital Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.14% mean?
Encore Capital Group (FRA:ECP) has a Return-on-Tangible-Asset of 7.14% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Encore Capital Group and its competitors. This is 88% above median its historical median of 3.80. According to the industry distribution chart, Encore Capital Group ranks #78 out of 544 companies in the Credit Services industry, placing it in the top 14.3%.
Is Encore Capital Group's Return-on-Tangible-Asset too high?
Encore Capital Group's current Return-on-Tangible-Asset of 7.14% is 88% above median its 10-year median of 3.80. The Credit Services industry median Return-on-Tangible-Asset is 1.93. Encore Capital Group's value of 7.14% is 269.9% above this industry median. Based on the distribution chart, Encore Capital Group ranks #78 out of 544 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 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Return-on-Tangible-Asset compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #78 out of 544 companies for Return-on-Tangible-Asset. This places Encore Capital Group in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.93. Encore Capital Group's value of 7.14% is 269.9% above this benchmark. While the company's 10-year median is 3.80 vs. the industry median of 1.93, 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 Return-on-Tangible-Asset for a Credit Services company?
The median Return-on-Tangible-Asset among Credit Services companies is 1.93, based on 544 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current Return-on-Tangible-Asset of 7.14% is 269.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Return-on-Tangible-Asset is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current Return-on-Tangible-Asset is 7.14%, which is 88% above median its own 10-year median of 3.80. 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 €62.21, compared to a current price of €79.00 — trading 27% above its estimated fair value. The current Return-on-Tangible-Asset is 7.14%, which is 88% above median its 10-year median of 3.80 and 269.9% above the Credit Services industry median of 1.93. Encore Capital Group's overall GF Score™ is 65/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Return-on-Tangible-Asset is 7.14% 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 €79.00 is trading 27% above its estimated GF Value™ of €62.21.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Return-on-Tangible-Asset: 7.14% (88% above median its 10-year median of 3.80)
GF Value™: €62.21 vs. price of €79.00 (27% above fair value)
Industry Position: 269.9% above the Credit Services median (#78 of 544)
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.
65GF Score
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