Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States.
Credit Acceptance Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$622.42|
|52 Week High||US$266.74|
|52 Week Low||US$671.12|
|1 Month Change||5.03%|
|3 Month Change||30.68%|
|1 Year Change||83.26%|
|3 Year Change||56.90%|
|5 Year Change||239.97%|
|Change since IPO||22,881.94%|
Recent News & Updates
I Ran A Stock Scan For Earnings Growth And Credit Acceptance (NASDAQ:CACC) Passed With Ease
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Credit Acceptance Should Take A Breather
CACC has rallied 77% since my article in January. As a result, the forward price-to-earnings ratio of CACC has risen to the upper part of the historical range of the stock. Investors should probably take their profits and wait on the sidelines to repurchase the stock at a more attractive level.
|CACC||US Consumer Finance||US Market|
Return vs Industry: CACC exceeded the US Consumer Finance industry which returned 80.4% over the past year.
Return vs Market: CACC exceeded the US Market which returned 30.3% over the past year.
Stable Share Price: CACC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CACC's weekly volatility (5%) has been stable over the past year.
About the Company
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.
Credit Acceptance Fundamentals Summary
|CACC fundamental statistics|
Is CACC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CACC income statement (TTM)|
|Cost of Revenue||US$39.10m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||56.03|
|Net Profit Margin||57.44%|
How did CACC perform over the long term?See historical performance and comparison
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 ($622.42) is trading below our estimate of fair value ($813.54)
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 (11.1x) compared to the US Consumer Finance industry average (7.5x).
PE vs Market: CACC is good value based on its PE Ratio (11.1x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: CACC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CACC is overvalued based on its PB Ratio (4.2x) compared to the US Consumer Finance industry average (1.8x).
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 earnings are forecast to decline over the next 3 years (-22.3% per year).
Earnings vs Market: CACC's earnings are forecast to decline over the next 3 years (-22.3% per year).
High Growth Earnings: CACC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CACC's revenue (5.8% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: CACC's revenue (5.8% 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 low in 3 years time (19.5%).
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 (57.4%) are higher than last year (41.6%).
Past Earnings Growth Analysis
Earnings Trend: CACC's earnings have grown by 12.3% per year over the past 5 years.
Accelerating Growth: CACC's earnings growth over the past year (164.5%) exceeds its 5-year average (12.3% per year).
Earnings vs Industry: CACC earnings growth over the past year (164.5%) exceeded the Consumer Finance industry 128.1%.
Return on Equity
High ROE: Whilst CACC's Return on Equity (37.57%) is high, this metric is skewed due to their high level of debt.
How is Credit Acceptance's financial position?
Financial Position Analysis
Short Term Liabilities: CACC's short term assets ($7.6B) exceed its short term liabilities ($226.5M).
Long Term Liabilities: CACC's short term assets ($7.6B) exceed its long term liabilities ($5.2B).
Debt to Equity History and Analysis
Debt Level: CACC's debt to equity ratio (199.8%) is considered high.
Reducing Debt: CACC's debt to equity ratio has reduced from 235.2% to 199.8% over the past 5 years.
Debt Coverage: CACC's debt is well covered by operating cash flow (24%).
Interest Coverage: Insufficient data to determine if CACC's interest payments on its debt are well covered by EBIT.
What is Credit Acceptance current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CACC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CACC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CACC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CACC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CACC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ken Booth (54 yo)
Mr. Kenneth S. Booth, also known as Ken, has been the Chief Financial Officer of Credit Acceptance Corp. since December 7, 2004. Mr. Booth serves as Chief Executive Officer, President and Director at Credi...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD1.90M) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.
Experienced Management: CACC's management team is considered experienced (2.4 years average tenure).
Experienced Board: CACC's board of directors are considered experienced (4.8 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 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$9.989b
- Shares outstanding: 16.05m
- Website: https://www.creditacceptance.com
Number of Employees
- Credit Acceptance Corporation
- 25505 West Twelve Mile Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/24 22:07|
|End of Day Share Price||2021/10/22 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.