Encore Capital Group (FRA:ECP) Risk Assessment


FRA:ECP Encore Capital Group Inc FRA:ECP
67 GF Score
Price €79.00
GF Value €62.22
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Encore Capital Group Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Encore Capital Group is: Moderate Risk: Sensitive, better choose undervalued stock.

Encore Capital Group  (FRA:ECP) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Encore Capital Group Risk Assessment Related Terms

FRA:ECP vs QFIN, EZPW, AGM.A: Risk Assessment Comparison

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

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

* The bar in red indicates where Encore Capital Group's Risk Assessment falls into.


FRA:ECP
67GF Score
Encore Capital Group Inc FRA:ECP
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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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 €62.22. GuruFocus considers Encore Capital Group to be Modestly Overvalued.

Key valuation signals for FRA:ECP:

  • Risk Assessment:
  • GF Value™: €62.22 vs. price of €79.00 (27% 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

Get the complete analysis for FRA:ECP

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

€79.00
Price
€62.22
GF Value