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CACC

Credit AcceptanceNasdaqGS:CACC Stock Report

Market Cap

US$10.0b

7D

1.2%

1Y

83.3%

Updated

24 Oct, 2021

Data

Company Financials +
CACC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends0/6

CACC Overview

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

Credit Acceptance Competitors

Capital One Financial

NYSE:COF

US$74.9b

Discover Financial Services

NYSE:DFS

US$36.9b

Ally Financial

NYSE:ALLY

US$17.7b

SoFi Technologies

NasdaqGS:SOFI

US$16.4b

Price History & Performance

Summary of all time highs, changes and price drops for Credit Acceptance
Historical stock prices
Current Share PriceUS$622.42
52 Week HighUS$266.74
52 Week LowUS$671.12
Beta1.22
1 Month Change5.03%
3 Month Change30.68%
1 Year Change83.26%
3 Year Change56.90%
5 Year Change239.97%
Change since IPO22,881.94%

Recent News & Updates

Sep 30
I Ran A Stock Scan For Earnings Growth And Credit Acceptance (NASDAQ:CACC) Passed With Ease

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...

Sep 14

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.

Shareholder Returns

CACCUS Consumer FinanceUS Market
7D1.2%1.1%1.7%
1Y83.3%80.3%30.3%

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.

Price Volatility

Is CACC's price volatile compared to industry and market?
CACC volatility
CACC Beta1.22
Industry Beta1.46
Market Beta1

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

FoundedEmployeesCEOWebsite
19722,033Ken Boothhttps://www.creditacceptance.com

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

How do Credit Acceptance's earnings and revenue compare to its market cap?
CACC fundamental statistics
Market CapUS$9.99b
Earnings (TTM)US$899.10m
Revenue (TTM)US$1.57b

11.1x

P/E Ratio

6.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CACC income statement (TTM)
RevenueUS$1.57b
Cost of RevenueUS$39.10m
Gross ProfitUS$1.53b
ExpensesUS$627.10m
EarningsUS$899.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)56.03
Gross Margin97.50%
Net Profit Margin57.44%
Debt/Equity Ratio199.8%

How did CACC perform over the long term?

See historical performance and comparison

Valuation

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

23.5%

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).


Future Growth

How is Credit Acceptance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-22.3%

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%).


Past Performance

How has Credit Acceptance performed over the past 5 years?

12.3%

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.


Financial Health

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.


Balance Sheet


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Ken Booth (54 yo)

0.42

Tenure

US$1,895,294

Compensation

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.


Leadership Team

Experienced Management: CACC's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: CACC's board of directors are considered experienced (4.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Credit Acceptance Corporation's 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$9.989b
  • Shares outstanding: 16.05m
  • Website: https://www.creditacceptance.com

Number of Employees


Location

  • Credit Acceptance Corporation
  • 25505 West Twelve Mile Road
  • Southfield
  • Michigan
  • 48034-8339
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:07
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.