Encore Capital Group Inc — Earnings Quality Grade F
ECPG · Financial Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 4 days, change -1 days YoY
AR growth 11.4% vs revenue growth 34.4%
Revenue grew 34.4% but CFFO declined -1.9%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
No material inventory
CapEx growth -10.1% vs revenue 34.4%. Normal
SG&A/Gross Profit = 17.2%, excellent (<30%)
Gross margin swung +8.8pp (45.9% → 54.6%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.1B, FCF/NI = 0.49
Accruals ratio = 1.9%. Low accruals
Cash $0.2B covers only 4% of debt $4.0B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 55% of equity. Over 50%
Debt/EBITDA = 6.2x (>4x). Financial stress
Other assets -34.4% vs revenue 34.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 6% YoY. Normal
Manipulation Score
M-Score = -2.25 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score — Not Applicable
Encore Capital Group Inc is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25