Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Encore Capital Group's 10-Year RORE % for the quarter that ended in Mar. 2026 was 25.38%.
The industry rank for Encore Capital Group's 10-Year RORE % or its related term are showing as below:
FRA:ECP's 10-Year RORE % is ranked better than 79.67% of 369
companies
in the Credit Services industry
Industry Median: 8.37
vs FRA:ECP: 25.38
Encore Capital Group (FRA:ECP) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Encore Capital Group 10-Year RORE % Related Terms
Encore Capital Group 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Encore Capital Group's 10-Year RORE % 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.
FRA:ECP vs QFIN, EZPW, AGM.A: 10-Year RORE % Comparison
For the Credit Services subindustry, Encore Capital Group's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Encore Capital Group's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
Encore Capital Group (FRA:ECP) has a 10-Year RORE % of 25.38 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Encore Capital Group and its competitors. According to the industry distribution chart, Encore Capital Group ranks #75 out of 369 companies in the Credit Services industry, placing it in the top 20.3%.
Is Encore Capital Group's 10-Year RORE % too high?
Encore Capital Group's current 10-Year RORE % is 25.38. The Credit Services industry median 10-Year RORE % is 8.37. Encore Capital Group's value of 25.38 is 203.2% above this industry median. Based on the distribution chart, Encore Capital Group ranks #75 out of 369 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 10-Year RORE % compare to QFIN and EZPW?
According to the Credit Services industry distribution chart, Encore Capital Group ranks #75 out of 369 companies for 10-Year RORE %. This places Encore Capital Group in the top 20% of its industry — outperforming the majority of peers. The industry median 10-Year RORE % is 8.37. Encore Capital Group's value of 25.38 is 203.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Credit Services company?
The median 10-Year RORE % among Credit Services companies is 8.37, based on 369 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encore Capital Group's current 10-Year RORE % of 25.38 is 203.2% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Encore Capital Group and its competitors. For the Credit Services industry, the median 10-Year RORE % is 8.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encore Capital Group's current 10-Year RORE % is 25.38. 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 €62.17, compared to a current price of €80.50 — trading 29.5% above its estimated fair value. The current 10-Year RORE % is 25.38 and 203.2% above the Credit Services industry median of 8.37. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Encore Capital Group (FRA:ECP), the current 10-Year RORE % is 25.38 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 29.5% above its estimated GF Value™ of €62.17.
GuruFocus considers Encore Capital Group to be Modestly Overvalued.
Key valuation signals for FRA:ECP:
10-Year RORE %: 25.38
GF Value™: €62.17 vs. price of €80.50 (29.5% above fair value)
Industry Position: 203.2% above the Credit Services median (#75 of 369)
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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