CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
USA - NASDAQ:CACC - US2253101016 - Common Stock
494.17 USD
-8.94 (-1.78%)
494.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CACC. CACC was compared to 55 industry peers in the Consumer Finance industry. While CACC is still in line with the averages on profitability rating, there are concerns on its financial health. CACC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CACC was profitable.
In the past year CACC had a positive cash flow from operations.
Each year in the past 5 years CACC has been profitable.
CACC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CACC (4.86%) is better than 72.73% of its industry peers.
CACC's Return On Equity of 27.30% is amongst the best of the industry. CACC outperforms 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.23%, CACC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CACC is below the industry average of 10.99%.
The last Return On Invested Capital (10.23%) for CACC is above the 3 year average (8.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 27.3% | ||
| ROIC | 10.23% |
ROA(3y)4.77%
ROA(5y)6.71%
ROE(3y)21.16%
ROE(5y)26.86%
ROIC(3y)8.71%
ROIC(5y)10.05%
1.3 Margins
CACC has a better Profit Margin (18.69%) than 80.00% of its industry peers.
CACC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 44.67%, CACC belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
CACC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.67% | ||
| PM (TTM) | 18.69% | ||
| GM | N/A |
OM growth 3Y-22.51%
OM growth 5Y-12.78%
PM growth 3Y-39.45%
PM growth 5Y-23.61%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CACC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CACC has less shares outstanding
The number of shares outstanding for CACC has been reduced compared to 5 years ago.
Compared to 1 year ago, CACC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that CACC is in the distress zone and has some risk of bankruptcy.
CACC's Altman-Z score of 1.16 is fine compared to the rest of the industry. CACC outperforms 67.27% of its industry peers.
The Debt to FCF ratio of CACC is 5.84, which is a neutral value as it means it would take CACC, 5.84 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.84, CACC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 3.68 is on the high side and indicates that CACC has dependencies on debt financing.
CACC has a Debt to Equity ratio of 3.68. This is in the lower half of the industry: CACC underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.99
WACC10.35%
2.3 Liquidity
CACC has a Current Ratio of 0.07. This is a bad value and indicates that CACC is not financially healthy enough and could expect problems in meeting its short term obligations.
CACC's Current ratio of 0.07 is on the low side compared to the rest of the industry. CACC is outperformed by 78.18% of its industry peers.
A Quick Ratio of 0.07 indicates that CACC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.07, CACC is doing worse than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.18% over the past year.
CACC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.14% yearly.
Looking at the last year, CACC shows a quite strong growth in Revenue. The Revenue has grown by 12.63% in the last year.
Measured over the past years, CACC shows a small growth in Revenue. The Revenue has been growing by 7.75% on average per year.
EPS 1Y (TTM)14.18%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%-16.81%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%8.47%
3.2 Future
Based on estimates for the next years, CACC will show a small growth in Earnings Per Share. The EPS will grow by 6.95% on average per year.
The Revenue is expected to grow by 10.25% on average over the next years. This is quite good.
EPS Next Y-0.26%
EPS Next 2Y6.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.95%
Revenue Next 2Y10.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.40 indicates a correct valuation of CACC.
60.00% of the companies in the same industry are cheaper than CACC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.08. CACC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.21, the valuation of CACC can be described as very reasonable.
CACC's Price/Forward Earnings ratio is in line with the industry average.
CACC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CACC is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
67.27% of the companies in the same industry are more expensive than CACC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.01 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
The decent profitability rating of CACC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.26
EPS Next 2Y6.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
494.17
-8.94 (-1.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners67.38%
Inst Owner Change-0.06%
Ins Owners18.64%
Ins Owner Change0.04%
Market Cap5.55B
Revenue(TTM)2.27B
Net Income(TTM)424.40M
Analysts46.67
Price Target476.85 (-3.5%)
Short Float %13.33%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.23%
Min EPS beat(2)-13.27%
Max EPS beat(2)-5.18%
EPS beat(4)1
Avg EPS beat(4)0.63%
Min EPS beat(4)-13.27%
Max EPS beat(4)25.8%
EPS beat(8)4
Avg EPS beat(8)6.19%
EPS beat(12)5
Avg EPS beat(12)-4.39%
EPS beat(16)8
Avg EPS beat(16)-2.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-1.6%
Revenue beat(4)1
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)6.16%
Revenue beat(8)3
Avg Revenue beat(8)1.96%
Revenue beat(12)4
Avg Revenue beat(12)0.96%
Revenue beat(16)5
Avg Revenue beat(16)0.6%
PT rev (1m)0%
PT rev (3m)-5.6%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 11.21 | ||
| P/S | 2.45 | ||
| P/FCF | 5.01 | ||
| P/OCF | 5 | ||
| P/B | 3.57 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)36.87
EY7.46%
EPS(NY)44.07
Fwd EY8.92%
FCF(TTM)98.59
FCFY19.95%
OCF(TTM)98.74
OCFY19.98%
SpS202.06
BVpS138.32
TBVpS138.32
PEG (NY)N/A
PEG (5Y)6.26
Graham Number338.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 27.3% | ||
| ROCE | 13.37% | ||
| ROIC | 10.23% | ||
| ROICexc | 10.33% | ||
| ROICexgc | 10.37% | ||
| OM | 44.67% | ||
| PM (TTM) | 18.69% | ||
| GM | N/A | ||
| FCFM | 48.79% |
ROA(3y)4.77%
ROA(5y)6.71%
ROE(3y)21.16%
ROE(5y)26.86%
ROIC(3y)8.71%
ROIC(5y)10.05%
ROICexc(3y)8.86%
ROICexc(5y)10.15%
ROICexgc(3y)8.92%
ROICexgc(5y)10.22%
ROCE(3y)11.39%
ROCE(5y)13.13%
ROICexgc growth 3Y-18.43%
ROICexgc growth 5Y-5.46%
ROICexc growth 3Y-18.36%
ROICexc growth 5Y-5.47%
OM growth 3Y-22.51%
OM growth 5Y-12.78%
PM growth 3Y-39.45%
PM growth 5Y-23.61%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 5.5 | ||
| Cap/Depr | 6.18% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | 106.52% | ||
| Profit Quality | 261.1% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 1.16 |
F-Score8
WACC10.35%
ROIC/WACC0.99
Cap/Depr(3y)11.21%
Cap/Depr(5y)19.65%
Cap/Sales(3y)0.15%
Cap/Sales(5y)0.28%
Profit Quality(3y)369.42%
Profit Quality(5y)290.21%
High Growth Momentum
Growth
EPS 1Y (TTM)14.18%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%-16.81%
EPS Next Y-0.26%
EPS Next 2Y6.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.63%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%8.47%
Revenue Next Year16.95%
Revenue Next 2Y10.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y64.73%
EBIT growth 3Y-18.46%
EBIT growth 5Y-6.02%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.71%
FCF growth 3Y2.28%
FCF growth 5Y7.66%
OCF growth 1Y-6.92%
OCF growth 3Y2.09%
OCF growth 5Y6.97%
CREDIT ACCEPTANCE CORP / CACC FAQ
Can you provide the ChartMill fundamental rating for CREDIT ACCEPTANCE CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CACC.
What is the valuation status for CACC stock?
ChartMill assigns a valuation rating of 5 / 10 to CREDIT ACCEPTANCE CORP (CACC). This can be considered as Fairly Valued.
What is the profitability of CACC stock?
CREDIT ACCEPTANCE CORP (CACC) has a profitability rating of 6 / 10.
What is the financial health of CREDIT ACCEPTANCE CORP (CACC) stock?
The financial health rating of CREDIT ACCEPTANCE CORP (CACC) is 3 / 10.