Encore Capital GroupFRA:ECP -1.85%65 ROC (Joel Greenblatt) % is 542.77% as of Mar. 2026, which is 87% above its 10-year median of 290.99. GuruFocus rates FRA:ECP with a GF Score™ of 65/100 and a GF Value™ of €62.16 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 412 Credit Services companies, Encore Capital Group ranks better than 79.13% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Encore Capital Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 542.77%.
The historical rank and industry rank for Encore Capital Group's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:ECP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 12.18 Med: 290.99 Max: 479.78
Current: 479.78
During the past 13 years, Encore Capital Group's highest ROC (Joel Greenblatt) % was 479.78%. The lowest was 12.18%. And the median was 290.99%.
FRA:ECP's ROC (Joel Greenblatt) % is ranked better than 79.13% of 412
companies
in the Credit Services industry
Industry Median: 38.59
vs FRA:ECP: 479.78
Encore Capital Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -10.30% per year.
Encore Capital Group (FRA:ECP) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Encore Capital Group ROC (Joel Greenblatt) % Related Terms
Encore Capital Group ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
FRA:ECP vs QFIN, EZPW, AGM.A: ROC (Joel Greenblatt) % Comparison
For the Credit Services subindustry, Encore Capital Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's ROC (Joel Greenblatt) % falls into.
Encore Capital Group ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 542.77% mean?
Encore Capital Group (FRA:ECP) has a ROC (Joel Greenblatt) % of 542.77% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Encore Capital Group and its competitors. This is 87% above median its historical median of 290.99. Over the past decade, Encore Capital Group's ROC (Joel Greenblatt) % has ranged from 12.18 to 479.78. According to the industry distribution chart, Encore Capital Group ranks #86 out of 412 companies in the Credit Services industry, placing it in the top 20.9%.
Is Encore Capital Group's ROC (Joel Greenblatt) % too high?
Encore Capital Group's current ROC (Joel Greenblatt) % of 542.77% is 87% above median its 10-year median of 290.99. Over the past 10 years, this metric has ranged from a low of 12.18 to a high of 479.78. The Credit Services industry median ROC (Joel Greenblatt) % is 38.59. Encore Capital Group's value of 542.77% is 1306.5% above this industry median. Based on the distribution chart, Encore Capital Group ranks #86 out of 412 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 ROC (Joel Greenblatt) % compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #86 out of 412 companies for ROC (Joel Greenblatt) %. This places Encore Capital Group in the top 21% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 38.59. Encore Capital Group's value of 542.77% is 1306.5% above this benchmark. Historically, Encore Capital Group's own ROC (Joel Greenblatt) % has ranged from 12.18 to 479.78 over the past decade. While the company's 10-year median is 290.99 vs. the industry median of 38.59, 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 ROC (Joel Greenblatt) % for a Credit Services company?
The median ROC (Joel Greenblatt) % among Credit Services companies is 38.59, based on 412 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current ROC (Joel Greenblatt) % of 542.77% is 1306.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median ROC (Joel Greenblatt) % is 38.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current ROC (Joel Greenblatt) % is 542.77%, which is 87% above median its own 10-year median of 290.99. 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 €62.16, compared to a current price of €79.50 — trading 27.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 542.77%, which is 87% above median its 10-year median of 290.99 and 1306.5% above the Credit Services industry median of 38.59. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current ROC (Joel Greenblatt) % is 542.77% 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 €79.50 is trading 27.9% above its estimated GF Value™ of €62.16.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
ROC (Joel Greenblatt) %: 542.77% (87% above median its 10-year median of 290.99)
GF Value™: €62.16 vs. price of €79.50 (27.9% above fair value)
Industry Position: 1306.5% above the Credit Services median (#86 of 412)
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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