NasdaqGS:CACC

Stock Analysis Report

Executive Summary

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Credit Acceptance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

CACC

1.0%

US Consumer Finance

0.5%

US Market


1 Year Return

14.9%

CACC

4.7%

US Consumer Finance

6.8%

US Market

Return vs Industry: CACC exceeded the US Consumer Finance industry which returned 4.7% over the past year.

Return vs Market: CACC exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

CACCIndustryMarket
7 Day0.1%1.0%0.5%
30 Day-2.0%-2.6%-0.8%
90 Day-4.1%-6.6%-0.9%
1 Year14.9%14.9%6.6%4.7%9.2%6.8%
3 Year149.2%149.2%52.6%45.2%45.6%36.2%
5 Year246.2%246.2%38.6%28.5%63.2%45.4%

Price Volatility Vs. Market

How volatile is Credit Acceptance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Credit Acceptance undervalued compared to its fair value and its price relative to the market?

28.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CACC ($464.92) is trading below our estimate of fair value ($653.77)

Significantly Below Fair Value: CACC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CACC is poor value based on its PE Ratio (14.1x) compared to the Consumer Finance industry average (8.3x).

PE vs Market: CACC is good value based on its PE Ratio (14.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CACC is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CACC is overvalued based on its PB Ratio (4x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Credit Acceptance forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CACC's forecast earnings growth (6.2% per year) is above the savings rate (2.7%).

Earnings vs Market: CACC's earnings (6.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: CACC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CACC's revenue (9.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CACC's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CACC's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Credit Acceptance performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CACC's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: CACC's earnings growth over the past year (15.1%) is below its 5-year average (20.2% per year).

Earnings vs Industry: CACC earnings growth over the past year (15.1%) underperformed the Consumer Finance industry 25.5%.


Return on Equity

High ROE: Whilst CACC's Return on Equity (28.52%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: CACC has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CACC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Credit Acceptance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CACC has a low level of unsold assets or inventory.

Debt Coverage by Assets: CACC's debt is covered by short term assets (assets are 1.601000x debt).


Financial Institutions Analysis

Asset Level: CACC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CACC has a sufficient allowance for bad loans.

Low Risk Liabilities: CACC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CACC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CACC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CACC has an appropriate level of bad loans.


Next Steps

Dividend

What is Credit Acceptance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CACC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CACC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CACC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CACC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CACC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Credit Acceptance's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Brett Roberts (53yo)

17.8yrs

Tenure

US$1,036,100

Compensation

Mr. Brett A. Roberts has been the Chief Executive Officer of Credit Acceptance Corp. since January 2002. Mr. Roberts served as the President of Credit Acceptance Corp. from August 24, 2006 to April 2, 2007 ...


CEO Compensation Analysis

Compensation vs. Market: Brett's total compensation ($USD1.04M) is below average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.2yrs

Average Tenure

50yo

Average Age

Experienced Management: CACC's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

14.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: CACC's board of directors are seasoned and experienced ( 14.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,065,49419 Nov 18
Prescott Investors Profit Sharing Trust
EntityCompany
Shares5,000
Max PriceUS$413.10
SellUS$450,14313 Nov 18
Prescott Investors Profit Sharing Trust
EntityCompany
Shares1,067
Max PriceUS$422.14
SellUS$6,738,22913 Nov 18
Prescott General Partners Llc
EntityCompany
Shares15,972
Max PriceUS$422.14
SellUS$1,023,18509 Nov 18
Prescott Investors Profit Sharing Trust
EntityCompany
Shares2,429
Max PriceUS$423.39
SellUS$15,325,44809 Nov 18
Prescott General Partners Llc
EntityCompany
Shares36,382
Max PriceUS$423.39
SellUS$530,69307 Nov 18
Prescott Investors Profit Sharing Trust
EntityCompany
Shares1,268
Max PriceUS$421.14
SellUS$7,954,11607 Nov 18
Prescott General Partners Llc
EntityCompany
Shares19,005
Max PriceUS$421.14

Ownership Breakdown


Management Team

  • Brett Roberts (53yo)

    CEO & Director

    • Tenure: 17.8yrs
    • Compensation: US$1.04m
  • Doug Busk (59yo)

    Senior VP & Treasurer

    • Tenure: 0yrs
  • Charles Pearce (55yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 14.8yrs
    • Compensation: US$1.22m
  • Kenneth Booth (52yo)

    Chief Financial Officer

    • Tenure: 14.8yrs
    • Compensation: US$1.22m
  • Arthur Smith (46yo)

    Chief Analytics Officer

    • Tenure: 6.2yrs
    • Compensation: US$1.22m
  • Daniel Ulatowski (47yo)

    Chief Sales Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.22m
  • Noah Kotch (48yo)

    Chief Information Officer

    • Tenure: 0.4yrs
  • Jonathan Lum (43yo)

    Chief Operating Officer

    • Tenure: 0.4yrs

Board Members

  • Brett Roberts (53yo)

    CEO & Director

    • Tenure: 17.8yrs
    • Compensation: US$1.04m
  • Tom Tryforos (60yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: US$19.50k
  • Scott Vassalluzzo (47yo)

    Independent Director

    • Tenure: 12.6yrs
  • Glenda Flanagan (65yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$50.00k

Company Information

Credit Acceptance Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Credit Acceptance Corporation
  • Ticker: CACC
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$8.818b
  • Shares outstanding: 18.97m
  • Website: https://www.creditacceptance.com

Number of Employees


Location

  • Credit Acceptance Corporation
  • 25505 West Twelve Mile Road
  • Southfield
  • Michigan
  • 48034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CACCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1992
2D5DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1992
CRDA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.1 COM USD0.01BRBRLMay 2019

Biography

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:34
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.