Encore Capital GroupECPG +1.48%69 ROE % is 34.30% as of Mar. 2026, which is 108% above its 10-year median of 16.51. GuruFocus rates ECPG with a GF Score™ of 69/100 and a GF Value™ of $72.29 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 529 Credit Services companies, Encore Capital Group ranks better than 94.14% on this metric.
The historical rank and industry rank for Encore Capital Group's ROE % or its related term are showing as below:
ECPG'
s ROE % Range Over the Past 10 Years
Min: -19.52 Med: 16.51 Max: 31.66
Current: 31.66
During the past 13 years, Encore Capital Group's highest ROE % was 31.66%. The lowest was -19.52%. And the median was 16.51%.
ECPG's ROE % is ranked better than 94.14% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs ECPG: 31.66
Encore Capital Group (NAS:ECPG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Credit Services subindustry, Encore Capital Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's ROE % distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Encore Capital Group (ECPG) has a ROE % of 34.30% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Encore Capital Group and its competitors. This is 108% above median its historical median of 16.51. According to the industry distribution chart, Encore Capital Group ranks #31 out of 529 companies in the Credit Services industry, placing it in the top 5.9%.
Is Encore Capital Group's ROE % too high?
Encore Capital Group's current ROE % of 34.30% is 108% above median its 10-year median of 16.51. The Credit Services industry median ROE % is 6.61. Encore Capital Group's value of 34.30% is 418.9% above this industry median. Based on the distribution chart, Encore Capital Group ranks #31 out of 529 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 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encore Capital Group's ROE % compare to AGM.A and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #31 out of 529 companies for ROE %. This places Encore Capital Group in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 6.61. Encore Capital Group's value of 34.30% is 418.9% above this benchmark. While the company's 10-year median is 16.51 vs. the industry median of 6.61, 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 ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current ROE % of 34.30% is 418.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current ROE % is 34.30%, which is 108% above median its own 10-year median of 16.51. 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 (ECPG) is currently considered Modestly Overvalued. The stock's GF Value™ is $72.29, compared to a current price of $87.07 — trading 20.4% above its estimated fair value. The current ROE % is 34.30%, which is 108% above median its 10-year median of 16.51 and 418.9% above the Credit Services industry median of 6.61. Encore Capital Group's overall GF Score™ is 69/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Encore Capital Group (ECPG), the current ROE % is 34.30% 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 (ECPG) Overvalued in 2026?
Based on GuruFocus' analysis, Encore Capital Group stock appears to be overvalued.
The current stock price of $87.07 is trading 20.4% above its estimated GF Value™ of $72.29.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for ECPG:
ROE %: 34.30% (108% above median its 10-year median of 16.51)
GF Value™: $72.29 vs. price of $87.07 (20.4% above fair value)
Industry Position: 418.9% above the Credit Services median (#31 of 529)
No single metric tells the full story. See the ECPG 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.
69GF Score
Get the complete analysis for ECPG
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ECPG has been successfully added to your 
