Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. More Details
Good value with reasonable growth potential.
Share Price & News
How has Credit Acceptance's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CACC's share price has been volatile over the past 3 months.
7 Day Return
US Consumer Finance
1 Year Return
US Consumer Finance
Return vs Industry: CACC underperformed the US Consumer Finance industry which returned -17.9% over the past year.
Return vs Market: CACC underperformed the US Market which returned 14.2% over the past year.
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
1 week ago | Simply Wall StSome Shareholders Feeling Restless Over Credit Acceptance Corporation's (NASDAQ:CACC) P/E Ratio
3 weeks ago | Simply Wall StIs Credit Acceptance's (NASDAQ:CACC) 135% Share Price Increase Well Justified?
1 month ago | Simply Wall StWhat We Learned About Credit Acceptance's (NASDAQ:CACC) CEO Pay
Is Credit Acceptance undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CACC ($329.68) is trading below our estimate of fair value ($472.67)
Significantly Below Fair Value: CACC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CACC is poor value based on its PE Ratio (17.9x) compared to the US Consumer Finance industry average (7.6x).
PE vs Market: CACC is good value based on its PE Ratio (17.9x) compared to the US market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: CACC is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: CACC is overvalued based on its PB Ratio (2.8x) compared to the US Consumer Finance industry average (1.1x).
How is Credit Acceptance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CACC's forecast earnings growth (31.9% per year) is above the savings rate (2.2%).
Earnings vs Market: CACC's earnings (31.9% per year) are forecast to grow faster than the US market (23.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CACC's revenue (13.3% per year) is forecast to grow faster than the US market (9.7% per year).
High Growth Revenue: CACC's revenue (13.3% 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 low in 3 years time (15.7%).
How has Credit Acceptance performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CACC has high quality earnings.
Growing Profit Margin: CACC's current net profit margins (41.6%) are lower than last year (54.5%).
Past Earnings Growth Analysis
Earnings Trend: CACC's earnings have grown by 14.5% per year over the past 5 years.
Accelerating Growth: CACC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CACC had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (-38.6%).
Return on Equity
High ROE: CACC's Return on Equity (16.5%) is considered low.
How is Credit Acceptance's financial position?
Financial Position Analysis
Short Term Liabilities: CACC's short term assets ($7.2B) exceed its short term liabilities ($181.3M).
Long Term Liabilities: CACC's short term assets ($7.2B) exceed its long term liabilities ($5.1B).
Debt to Equity History and Analysis
Debt Level: CACC's debt to equity ratio (232.3%) is considered high.
Reducing Debt: CACC's debt to equity ratio has increased from 224.6% to 232.3% over the past 5 years.
Debt Coverage: CACC's debt is not well covered by operating cash flow (19.1%).
Interest Coverage: Insufficient data to determine if CACC's interest payments on its debt are well covered by EBIT.
What is Credit Acceptance current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CACC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CACC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CACC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CACC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CACC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brett Roberts (54 yo)
Mr. Brett A. Roberts has been the Chief Executive Officer of Credit Acceptance Corp. since January 2002. Mr. Roberts served as the President of Credit Acceptance Corp. from August 24, 2006 to April 2, 2007 ...
CEO Compensation Analysis
Compensation vs Market: Brett's total compensation ($USD1.04M) is below average for companies of similar size in the US market ($USD7.31M).
Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.
|CEO & Director||18.67yrs||US$1.04m||2.34% |
|Chief Financial Officer||15.75yrs||US$2.92m||0.11% |
|Chief Legal Officer & Corporate Secretary||15.75yrs||US$2.92m||0.020% |
|Chief Sales Officer||6.67yrs||US$2.92m||0.069% |
|Chief Analytics Officer||7.08yrs||US$2.92m||0.064% |
|Chief Operating Officer||1.33yrs||no data||0.048% |
|Chief Information Officer||1.33yrs||no data||0.013% |
|Chief Treasury Officer||no data||no data||0.016% |
Experienced Management: CACC's management team is seasoned and experienced (7.1 years average tenure).
|CEO & Director||18.67yrs||US$1.04m||2.34% |
|Independent Lead Director||3.67yrs||US$21.50k||2.43% |
|Independent Director||13.5yrs||no data||0.35% |
|Independent Director||16.5yrs||US$704.62k||0.074% |
Experienced Board: CACC's board of directors are seasoned and experienced ( 15 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CACC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Credit Acceptance Corporation's company bio, employee growth, exchange listings and data sources
- Name: Credit Acceptance Corporation
- Ticker: CACC
- Exchange: NasdaqGS
- Founded: 1972
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$5.872b
- Shares outstanding: 17.81m
- Website: https://www.creditacceptance.com
Number of Employees
- Credit Acceptance Corporation
- 25505 West Twelve Mile Road
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CACC||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jun 1992|
|2D5||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jun 1992|
|CRDA34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REP 0.1 COM USD0.01||BR||BRL||May 2019|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/18 06:04|
|End of Day Share Price||2020/09/17 00:00|
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.