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Credit Acceptance

Nasdaq:CACC
Snowflake Description

Acceptable track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CACC
Nasdaq
$9B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The last earnings update was 21 days ago. More info.


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CACC Share Price and Events
7 Day Returns
-0.4%
NasdaqGS:CACC
-0.6%
US Consumer Finance
-0.7%
US Market
1 Year Returns
31.6%
NasdaqGS:CACC
1.9%
US Consumer Finance
3%
US Market
CACC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Credit Acceptance (CACC) -0.4% 0.2% 6% 31.6% 156.6% 266.8%
US Consumer Finance -0.6% 2.1% 7.7% 1.9% 56.8% 30.2%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • CACC outperformed the Consumer Finance industry which returned 1.9% over the past year.
  • CACC outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
CACC
Industry
5yr Volatility vs Market

Value

 Is Credit Acceptance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Credit Acceptance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Credit Acceptance.

NasdaqGS:CACC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $159.31 * 25%
$39.83
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $159.31
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CACC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.719 (1 + (1- 21%) (47.36%))
0.992
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.992 * 5.96%)
8.64%

Discounted Cash Flow Calculation for NasdaqGS:CACC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Credit Acceptance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:CACC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (25% – 8.64%) * $159.31)
$26.06
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $26.06 / (8.64% - 2.73%)
$440.85
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $159.31 + $440.85
$600.16
NasdaqGS:CACC Discount to Share Price
Calculation Result
Value per share (USD) From above. $600.16
Current discount Discount to share price of $471.49
= -1 x ($471.49 - $600.16) / $600.16
21.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Credit Acceptance is available for.
Intrinsic value
21%
Share price is $471.49 vs Future cash flow value of $600.16
Current Discount Checks
For Credit Acceptance to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Credit Acceptance's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Credit Acceptance's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Credit Acceptance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Credit Acceptance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CACC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $31.99
NasdaqGS:CACC Share Price ** NasdaqGS (2019-05-17) in USD $471.49
United States of America Consumer Finance Industry PE Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 8.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Credit Acceptance.

NasdaqGS:CACC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CACC Share Price ÷ EPS (both in USD)

= 471.49 ÷ 31.99

14.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Credit Acceptance is overvalued based on earnings compared to the US Consumer Finance industry average.
  • Credit Acceptance is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Credit Acceptance's expected growth come at a high price?
Raw Data
NasdaqGS:CACC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
4.5%per year
United States of America Consumer Finance Industry PEG Ratio Median Figure of 23 Publicly-Listed Consumer Finance Companies 0.73x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:CACC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.74x ÷ 4.5%

3.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Credit Acceptance is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Credit Acceptance's assets?
Raw Data
NasdaqGS:CACC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $108.02
NasdaqGS:CACC Share Price * NasdaqGS (2019-05-17) in USD $471.49
United States of America Consumer Finance Industry PB Ratio Median Figure of 39 Publicly-Listed Consumer Finance Companies 1.6x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:CACC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CACC Share Price ÷ Book Value per Share (both in USD)

= 471.49 ÷ 108.02

4.36x

* Primary Listing of Credit Acceptance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Credit Acceptance is overvalued based on assets compared to the US Consumer Finance industry average.
X
Value checks
We assess Credit Acceptance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Credit Acceptance has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Credit Acceptance expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Credit Acceptance expected to grow at an attractive rate?
  • Credit Acceptance's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Credit Acceptance's earnings growth is positive but not above the United States of America market average.
  • Credit Acceptance's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CACC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CACC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 4.5%
NasdaqGS:CACC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 9.2%
United States of America Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 5.4%
United States of America Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CACC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CACC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,655 705 3
2020-12-31 1,602 687 9
2019-12-31 1,467 652 9
NasdaqGS:CACC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,129 726 618
2018-12-31 1,072 704 574
2018-09-30 983 652 599
2018-06-30 934 615 549
2018-03-31 884 612 497
2017-12-31 861 566 470
2017-09-30 869 558 381
2017-06-30 840 540 366
2017-03-31 812 577 352
2016-12-31 781 507 333
2016-09-30 762 467 325
2016-06-30 740 443 313

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Credit Acceptance's earnings are expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
  • Credit Acceptance's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CACC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Credit Acceptance Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CACC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 37.42 39.29 35.77 3.00
2020-12-31 36.61 38.31 34.20 10.00
2019-12-31 34.45 35.76 33.00 10.00
NasdaqGS:CACC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 31.99
2018-12-31 29.52
2018-09-30 30.82
2018-06-30 28.25
2018-03-31 25.58
2017-12-31 24.12
2017-09-30 19.35
2017-06-30 18.37
2017-03-31 17.45
2016-12-31 16.37
2016-09-30 15.87
2016-06-30 15.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Credit Acceptance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Credit Acceptance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Credit Acceptance has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Credit Acceptance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Credit Acceptance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Credit Acceptance's year on year earnings growth rate has been positive over the past 5 years.
  • Credit Acceptance's 1-year earnings growth exceeds its 5-year average (24.4% vs 19.7%)
  • Credit Acceptance's earnings growth has not exceeded the US Consumer Finance industry average in the past year (24.4% vs 33.4%).
Earnings and Revenue History
Credit Acceptance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Credit Acceptance Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CACC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,128.90 618.30 297.80
2018-12-31 1,072.30 574.00 291.20
2018-09-30 983.30 599.20 282.20
2018-06-30 934.10 548.90 272.80
2018-03-31 883.50 497.00 264.30
2017-12-31 860.50 470.20 254.00
2017-09-30 869.30 380.70 243.10
2017-06-30 840.30 365.90 236.60
2017-03-31 812.30 351.70 230.10
2016-12-31 781.30 332.80 224.10
2016-09-30 761.70 325.20 218.80
2016-06-30 739.60 313.30 213.50
2016-03-31 718.40 302.60 207.40
2015-12-31 707.80 299.70 200.10
2015-09-30 696.60 292.70 196.80
2015-06-30 684.10 292.70 185.90
2015-03-31 670.90 287.90 179.10
2014-12-31 654.00 266.20 171.30
2014-09-30 636.20 259.10 164.70
2014-06-30 622.60 250.20 162.60
2014-03-31 608.50 242.30 160.80
2013-12-31 595.20 253.10 156.20
2013-09-30 578.00 247.10 153.40
2013-06-30 557.10 234.90 152.80
2013-03-31 542.70 230.00 148.10
2012-12-31 521.80 219.70 143.90
2012-09-30 501.35 209.81 135.34
2012-06-30 486.34 206.87 126.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Credit Acceptance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Credit Acceptance used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Credit Acceptance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Credit Acceptance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Credit Acceptance has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Credit Acceptance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Credit Acceptance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Credit Acceptance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Credit Acceptance's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Credit Acceptance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Credit Acceptance Company Filings, last reported 1 month ago.

NasdaqGS:CACC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,048.90 4,235.10 41.30
2018-12-31 1,990.90 3,820.90 25.70
2018-09-30 1,963.30 3,876.90 195.70
2018-06-30 1,809.60 3,665.80 55.70
2018-03-31 1,656.70 3,446.40 11.50
2017-12-31 1,535.80 3,070.80 8.20
2017-09-30 1,351.80 3,000.80 4.90
2017-06-30 1,248.20 3,014.40 27.20
2017-03-31 1,163.80 2,905.30 11.10
2016-12-31 1,173.70 2,603.70 14.60
2016-09-30 1,165.70 2,510.40 5.70
2016-06-30 1,078.10 2,538.30 158.30
2016-03-31 991.40 2,328.30 9.10
2015-12-31 928.10 2,067.80 6.30
2015-09-30 931.30 2,081.20 134.70
2015-06-30 853.90 1,918.00 1.30
2015-03-31 777.30 1,983.50 86.70
2014-12-31 702.20 1,752.50 6.40
2014-09-30 748.50 1,660.10 4.30
2014-06-30 672.80 1,654.70 6.70
2014-03-31 715.00 1,558.20 5.60
2013-12-31 750.10 1,392.40 4.20
2013-09-30 689.80 1,434.00 3.60
2013-06-30 653.90 1,407.20 9.00
2013-03-31 624.60 1,356.00 7.80
2012-12-31 621.90 1,250.80 9.00
2012-09-30 597.81 1,262.06 5.74
2012-06-30 540.36 1,132.05 5.18
  • Credit Acceptance's level of debt (206.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (218.2% vs 206.7% today).
  • Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Credit Acceptance's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Credit Acceptance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Credit Acceptance has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Credit Acceptance dividends. Estimated to be 0% next year.
If you bought $2,000 of Credit Acceptance shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Credit Acceptance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Credit Acceptance's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CACC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CACC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Credit Acceptance has not reported any payouts.
  • Unable to verify if Credit Acceptance's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Credit Acceptance's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Credit Acceptance has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Credit Acceptance's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Credit Acceptance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Credit Acceptance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Credit Acceptance has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brett Roberts
COMPENSATION $1,036,100
AGE 52
TENURE AS CEO 17.3 years
CEO Bio

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 and served as its Chief Financial Officer and Treasurer since August 1995. He served as an Executive Vice President since January 1997, Co-President since January 2000, Executive Vice President for Finance and Operations since October 2000 and Chief Operating Officer since January 2001. He joined Credit Acceptance Corporation in 1991 as Corporate Controller and served as an Assistant Treasurer since March 1992 and Vice President for Finance since April 1993. Mr. Roberts has been an Executive Director of Credit Acceptance Corp. since March 2002.

CEO Compensation
  • Brett's compensation has been consistent with company performance over the past year.
  • Brett's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Credit Acceptance management team in years:

10.5
Average Tenure
52
Average Age
  • The average tenure for the Credit Acceptance management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brett Roberts

TITLE
CEO & Director
COMPENSATION
$1M
AGE
52
TENURE
17.3 yrs

Kenneth Booth

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
51
TENURE
14.4 yrs

Charles Pearce

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$1M
AGE
54
TENURE
14.4 yrs

Daniel Ulatowski

TITLE
Chief Sales Officer
COMPENSATION
$1M
AGE
46
TENURE
5.3 yrs

Arthur Smith

TITLE
Chief Analytics Officer
COMPENSATION
$1M
AGE
45
TENURE
5.8 yrs

John Soave

TITLE
Chief Information Officer
AGE
53
TENURE
6.6 yrs

Doug Busk

TITLE
Senior VP & Treasurer
AGE
58
Board of Directors Tenure

Average tenure and age of the Credit Acceptance board of directors in years:

13.7
Average Tenure
55.5
Average Age
  • The average tenure for the Credit Acceptance board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Brett Roberts

TITLE
CEO & Director
COMPENSATION
$1M
AGE
52
TENURE
17.2 yrs

Tom Tryforos

TITLE
Lead Director
COMPENSATION
$20K
AGE
59
TENURE
2.3 yrs

Glenda Flanagan

TITLE
Director
COMPENSATION
$50K
AGE
64
TENURE
15.2 yrs

Scott Vassalluzzo

TITLE
Director
AGE
46
TENURE
12.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Nov 18 Sell Prescott General Partners Llc Company 07. Nov 18 08. Nov 18 -36,382 $423.39 $-15,325,448
13. Nov 18 Sell Prescott General Partners Llc Company 09. Nov 18 12. Nov 18 -15,972 $422.14 $-6,738,229
27. Aug 18 Sell Prescott General Partners Llc Company 23. Aug 18 27. Aug 18 -36,900 $454.56 $-16,729,900
07. Nov 18 Sell Prescott General Partners Llc Company 05. Nov 18 06. Nov 18 -19,005 $421.14 $-7,954,116
06. Aug 18 Sell Elias Charles & Co LLC Company 02. Aug 18 03. Aug 18 -33,300 $448.99 $-14,589,914
19. Nov 18 Sell Prescott Investors Profit Sharing Trust Company 15. Nov 18 15. Nov 18 -5,000 $413.10 $-2,065,494
07. Nov 18 Sell Prescott Investors Profit Sharing Trust Company 05. Nov 18 06. Nov 18 -1,268 $421.14 $-530,693
13. Nov 18 Sell Prescott Investors Profit Sharing Trust Company 09. Nov 18 12. Nov 18 -1,067 $422.14 $-450,143
09. Nov 18 Sell Prescott Investors Profit Sharing Trust Company 07. Nov 18 08. Nov 18 -2,429 $423.39 $-1,023,185
22. Aug 18 Sell Arthur Smith Individual 22. Aug 18 22. Aug 18 -2,000 $460.98 $-921,960
06. Aug 18 Sell GCM Partners, LP Company 02. Aug 18 02. Aug 18 -7,000 $437.00 $-3,023,091
06. Aug 18 Sell Glenda Flanagan Individual 02. Aug 18 02. Aug 18 -6,000 $437.00 $-2,591,221
06. Aug 18 Sell Douglas Busk Individual 03. Aug 18 03. Aug 18 -1,000 $440.02 $-440,002
06. Aug 18 Sell Brett Roberts Individual 02. Aug 18 02. Aug 18 -2,000 $443.36 $-886,720
02. Aug 18 Sell Charles Pearce Individual 02. Aug 18 02. Aug 18 -1,000 $426.93 $-426,930
21. Jun 18 Sell Douglas Busk Individual 21. Jun 18 21. Jun 18 -730 $370.00 $-270,100
X
Management checks
We assess Credit Acceptance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Credit Acceptance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

I Ran A Stock Scan For Earnings Growth And Credit Acceptance (NASDAQ:CACC) Passed With Ease

So if you're like me, you might be more interested in profitable, growing companies, like Credit Acceptance (NASDAQ:CACC). … See our latest analysis for Credit Acceptance Credit Acceptance's Earnings Per Share Are Growing. … I discovered that the median total compensation for the CEOs of companies like Credit Acceptance with market caps between US$4.0b and US$12b is about US$6.9m.

Simply Wall St -

How Much is Credit Acceptance Corporation's (NASDAQ:CACC) CEO Getting Paid?

How Does Brett Roberts's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Credit Acceptance Corporation has a market cap of US$8.8b, and is paying total annual CEO compensation of US$1.0m. … It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$1.0m

Simply Wall St -

Are Insiders Selling Credit Acceptance Corporation (NASDAQ:CACC) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Credit Acceptance Corporation (NASDAQ:CACC). … In total, Credit Acceptance insiders sold more than they bought over the last year

Simply Wall St -

Shareholders Are Thrilled That The Credit Acceptance (NASDAQ:CACC) Share Price Increased 212%

One great example is Credit Acceptance Corporation (NASDAQ:CACC) which saw its share price drive 212% higher over five years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Credit Acceptance achieved compound earnings per share (EPS) growth of 23% per year.

Simply Wall St -

Don't Sell Credit Acceptance Corporation (NASDAQ:CACC) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Credit Acceptance Corporation's (NASDAQ:CACC) P/E ratio and reflect on what it tells us about the company's share price. … Credit Acceptance has a price to earnings ratio of 15.08, based on the last twelve months.

Simply Wall St -

Intrinsic Calculation For Credit Acceptance Corporation (NASDAQ:CACC) Shows Investors Are Overpaying

Understanding these differences is crucial when it comes to putting a value on the financial stock. … For instance, these lenders must hold a certain level of cash reserves on the books as a safety precaution.

Simply Wall St -

What Does Credit Acceptance Corporation's (NASDAQ:CACC) P/E Ratio Tell You?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Credit Acceptance has a price to earnings ratio of 13.03, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Credit Acceptance Corporation's (NASDAQ:CACC) CEO Overpaid Relative To Its Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Brett Roberts's Compensation Compare With Similar Sized Companies. … According to our data, Credit Acceptance Corporation has a market capitalization of US$8.0b, and pays its CEO total annual compensation worth US$1m.

Simply Wall St -

Intrinsic Calculation For Credit Acceptance Corporation (NASDAQ:CACC) Shows Investors Are Overpaying

Valuing CACC, a financial stock, can be daunting since consumer financials generally have cash flows that are impacted by regulations that are not imposed upon other industries. … These lenders, for example, must hold certain levels of capital in order to maintain a safe cash cushion.

Simply Wall St -

Does Credit Acceptance Corporation's (NASDAQ:CACC) PE Ratio Signal A Buying Opportunity?

and want to begin learning the link between Credit Acceptance Corporation (NASDAQ:CACC)’s fundamentals and stock market performance. … Credit Acceptance Corporation (NASDAQ:CACC) trades with a trailing P/E of 13.7x, which is lower than the industry average of 14.7x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

Company Info

Description

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 exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company was founded in 1972 and is headquartered in Southfield, Michigan.

Details
Name: Credit Acceptance Corporation
CACC
Exchange: NasdaqGS
Founded: 1972
$8,943,031,838
18,967,596
Website: http://www.creditacceptance.com
Address: Credit Acceptance Corporation
25505 West Twelve Mile Road,
Southfield,
Michigan, 48034,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CACC Common Stock Nasdaq Global Select US USD 05. Jun 1992
DB 2D5 Common Stock Deutsche Boerse AG DE EUR 05. Jun 1992
BOVESPA CRDA34 BDR EACH 1 REP 0.1 COM USD0.01 Bolsa de Valores de Sao Paulo BR USD 31. Mar 2019
Number of employees
Current staff
Staff numbers
2,040
Credit Acceptance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:30
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.