| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | 7.5x | 17.8x | Top tier | |
Growth | 71 | 29.5% | 7.1% | Top tier | |
Quality | 97 | — | — | Top tier | |
Safety | 25 | — | — | Bottom tier | |
Capital Return | 8 | — | 2.12% | Bottom tier | |
Momentum | 99 | 128.5% | 2.9% | Top tier | |
Sentiment | 34 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Encore Capital Group purchases and collects portfolios of charged-off consumer debt through two main businesses: Midland Credit Management in the United States and Cabot Credit Management in selected European markets. Its economic model is based on purchasing receivables portfolios at targeted returns, then using data, analytics, and digital channels to collect amounts exceeding the cost of purchase and financing; 87% of global portfolio purchases in fiscal Q1 2026 came from the United States. In that quarter, portfolio purchases totaled $363 million and global collections reached a record $718 million, including $556 million for MCM and $161 million for Cabot.
In fiscal Q2 2026, Encore recorded revenue of $491.9 million, net income of $64.0 million, and earnings per share of $2.81, equivalent to a calculated net income margin of approximately 13.0%. Revenue increased by approximately 3.5% compared with revenue of $475.4 million in fiscal Q1 2026, but net income declined from $86.2 million and earnings per share from $3.86. Fiscal Q2 2026 revenue exceeded analysts' estimates, supported by record global collections, execution in the U.S. market, and growth in international collections, while earnings per share fell short of the $3.07 estimate.
Fiscal Q1 2026 figures show that MCM is the most important operating driver: its collections rose 23% to $556 million, compared with 7% growth in Cabot collections to $161 million, supported by currency effects. Debt purchasing revenue totaled $453 million and servicing and other revenue totaled $23 million, while operating expenses increased 11% to $291 million versus 19% growth in collections. According to fiscal 2025 data, the company generated revenue of $1.8 billion, net income of $256.8 million, and earnings per share of $10.91.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average price target of $100, which is also both the highest and lowest target, compared with a 52-week high of $104.98 and a low of $39.95. No published price-to-earnings ratio is available in the data, while the positive outlook warrants caution because earnings per share in fiscal Q2 2026 were $2.81 and fell short of the $3.07 estimate. The fact that all target levels are identical at $100 also provides no range reflecting variation between downside and upside scenarios.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Encore purchases portfolios of charged-off consumer receivables and then works to collect them through Midland Credit Management in the United States and Cabot Credit Management in Europe. Its returns depend on purchasing portfolios at an appropriate price, achieving strong collections, and financing purchases at a competitive cost. In fiscal Q1 2026, debt purchasing revenue totaled $453 million, while servicing and other revenue totaled $23 million. Global collections reached $718 million, including $556 million for MCM and $161 million for Cabot.
Encore's revenue in fiscal Q2 2026 totaled approximately $491.9 million and exceeded analysts' expectations, supported by record global collections, execution in the United States, and growth in international collections. In contrast, earnings per share were $2.81 versus an estimate of $3.07, approximately 8.5% lower. Net income totaled $64.0 million, compared with $86.2 million in fiscal Q1 2026. Nevertheless, news on August 6, 2026 reported that the company raised its full-year outlook.
Midland Credit Management represents the U.S. business and the group's main operating driver. In fiscal Q1 2026, MCM's portfolio purchases totaled $316 million, within a global total of $363 million, while its collections rose 23% to a record $556 million. The business benefited from new technologies, digital channels, and operational innovation, and more than 50% of new payments are made through digital channels. These improvements raised the 2024 portfolio multiple to 2.5 and the 2025 portfolio multiple to 2.4.
During the May 8, 2026 call, management projected global portfolio purchases of between $1.4 and $1.5 billion during fiscal 2026. It raised its global collections outlook to $2.8 billion, representing growth of 8%, and also projected 19% growth in earnings per share to $13. It maintained its cash efficiency margin outlook above 58%, and combined interest expense and other income near $300 million. Following fiscal Q2 2026 results, news on August 6, 2026 reported that the company raised its outlook, without providing updated figures in the data.
Cabot operates in an environment characterized by weak consumer lending, low defaults, and continued strong competition, particularly in the United Kingdom. Encore therefore kept its European capital deployment selective, and Cabot's purchases totaled approximately $47 million in fiscal Q1 2026. Cabot's collections increased 7% to $161 million, but this growth benefited from a positive currency effect. Cabot's portfolio collection multiple in that quarter was also 2.2, below the starting multiple of 2.4 for MCM's 2026 portfolio.
Management said during the May 8, 2026 call that the company uses machine learning technologies and AI-like tools in modeling and pricing, and is testing newer tools through a test-and-learn approach. New technologies and digital channels helped increase MCM's collections to $556 million in fiscal Q1 2026. However, management explained that collection calls are complex and require empathy, and that voice tools are not yet ready to perform the role of account managers at the same level. Synthetic voices in collection calls also raise regulatory considerations, so the company is adopting them gradually and cautiously.
