Encore Capital GroupFRA:ECP -0.62%64 Return-on-Tangible-Equity is 73.38% as of Mar. 2026, which is 5% above its 10-year median of 69.81. GuruFocus rates FRA:ECP with a GF Score™ of 64/100 and a GF Value™ of €62.12 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 525 Credit Services companies, Encore Capital Group ranks better than 96.38% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Encore Capital Group's annualized net income for the quarter that ended in Mar. 2026 was €298 Mil. Encore Capital Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €407 Mil. Therefore, Encore Capital Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 73.38%.
The historical rank and industry rank for Encore Capital Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:ECP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -61.98 Med: 69.81 Max: 135.76
Current: 73.49
During the past 13 years, Encore Capital Group's highest Return-on-Tangible-Equity was 135.76%. The lowest was -61.98%. And the median was 69.81%.
FRA:ECP's Return-on-Tangible-Equity is ranked better than 96.38% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs FRA:ECP: 73.49
Encore Capital Group (FRA:ECP) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Encore Capital Group Return-on-Tangible-Equity Related Terms
Encore Capital Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's Return-on-Tangible-Equity 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-Equity Chart
FRA:ECP vs QFIN, EZPW, AGM.A: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Encore Capital Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 73.38% mean?
Encore Capital Group (FRA:ECP) has a Return-on-Tangible-Equity of 73.38% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Encore Capital Group and its competitors. This is near median its historical median of 69.81. According to the industry distribution chart, Encore Capital Group ranks #19 out of 525 companies in the Credit Services industry, placing it in the top 3.6%.
Is Encore Capital Group's Return-on-Tangible-Equity too high?
Encore Capital Group's current Return-on-Tangible-Equity of 73.38% is near median its 10-year median of 69.81. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Encore Capital Group's value of 73.38% is 946.8% above this industry median. Based on the distribution chart, Encore Capital Group ranks #19 out of 525 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 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's Return-on-Tangible-Equity compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #19 out of 525 companies for Return-on-Tangible-Equity. This places Encore Capital Group in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.01. Encore Capital Group's value of 73.38% is 946.8% above this benchmark. While the company's 10-year median is 69.81 vs. the industry median of 7.01, 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-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 73.38% is 946.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — 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-Equity is 73.38%, which is near median its own 10-year median of 69.81. 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 €62.12, compared to a current price of €80.50 — trading 29.6% above its estimated fair value. The current Return-on-Tangible-Equity is 73.38%, which is near median its 10-year median of 69.81 and 946.8% above the Credit Services industry median of 7.01. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current Return-on-Tangible-Equity is 73.38% 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 €80.50 is trading 29.6% above its estimated GF Value™ of €62.12.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
Return-on-Tangible-Equity: 73.38% (near median its 10-year median of 69.81)
GF Value™: €62.12 vs. price of €80.50 (29.6% above fair value)
Industry Position: 946.8% above the Credit Services median (#19 of 525)
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
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