CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
NASDAQ:CACC - Nasdaq - US2253101016 - Common Stock - Currency: USD
CACC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. CACC has a medium profitability rating, but doesn't score so well on its financial health evaluation. CACC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CACC had positive earnings in the past year.
CACC had a positive operating cash flow in the past year.
CACC had positive earnings in each of the past 5 years.
Each year in the past 5 years CACC had a positive operating cash flow.
1.2 Ratios
CACC has a better Return On Assets (2.80%) than 66.04% of its industry peers.
CACC's Return On Equity of 14.17% is in line compared to the rest of the industry. CACC outperforms 58.49% of its industry peers.
The Return On Invested Capital of CACC (7.02%) is better than 73.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CACC is in line with the industry average of 8.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 14.17% | ||
| ROIC | 7.02% |
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
Looking at the Profit Margin, with a value of 11.46%, CACC is in line with its industry, outperforming 54.72% of the companies in the same industry.
In the last couple of years the Profit Margin of CACC has declined.
Looking at the Operating Margin, with a value of 35.73%, CACC belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
CACC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.73% | ||
| PM (TTM) | 11.46% | ||
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
CACC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CACC has been reduced compared to 5 years ago.
CACC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that CACC is in the distress zone and has some risk of bankruptcy.
CACC has a Altman-Z score of 1.22. This is in the better half of the industry: CACC outperforms 62.26% of its industry peers.
The Debt to FCF ratio of CACC is 5.59, which is a neutral value as it means it would take CACC, 5.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.59, CACC is in line with its industry, outperforming 58.49% of the companies in the same industry.
A Debt/Equity ratio of 3.63 is on the high side and indicates that CACC has dependencies on debt financing.
CACC has a worse Debt to Equity ratio (3.63) than 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.88
WACC8.01%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CACC may have some problems paying its short term obligations.
CACC has a Current ratio of 0.80. This is comparable to the rest of the industry: CACC outperforms 43.40% of its industry peers.
A Quick Ratio of 0.80 indicates that CACC may have some problems paying its short term obligations.
CACC has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.98% over the past year.
The Earnings Per Share has been growing slightly by 2.14% on average over the past years.
The Revenue has grown by 13.70% in the past year. This is quite good.
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)74.98%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%39.51%
Revenue 1Y (TTM)13.7%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%15.11%
3.2 Future
CACC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.24% yearly.
CACC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.42% yearly.
EPS Next Y9.7%
EPS Next 2Y13.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.37%
Revenue Next 2Y10.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.51, which indicates a very decent valuation of CACC.
Based on the Price/Earnings ratio, CACC is valued a bit more expensive than the industry average as 60.38% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CACC to the average of the S&P500 Index (28.29), we can say CACC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.49, the valuation of CACC can be described as reasonable.
CACC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CACC to the average of the S&P500 Index (21.32), we can say CACC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
64.15% of the companies in the same industry are more expensive than CACC, based on the Enterprise Value to EBITDA ratio.
CACC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CACC is cheaper than 60.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
CACC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CACC's earnings are expected to grow with 13.24% in the coming years.
PEG (NY)1.19
PEG (5Y)5.38
EPS Next 2Y13.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
443.32
-28.87 (-6.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.79%
Inst Owner Change0.12%
Ins Owners11.87%
Ins Owner Change6.94%
Market Cap5.33B
Analysts46.67
Price Target493.43 (11.3%)
Short Float %5.73%
Short Ratio6.45
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)1
Avg EPS beat(2)10.49%
Min EPS beat(2)-4.82%
Max EPS beat(2)25.8%
EPS beat(4)3
Avg EPS beat(4)10.8%
Min EPS beat(4)-4.82%
Max EPS beat(4)25.8%
EPS beat(8)4
Avg EPS beat(8)-3.38%
EPS beat(12)6
Avg EPS beat(12)-4.61%
EPS beat(16)10
Avg EPS beat(16)5.93%
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)6.16%
Revenue beat(4)3
Avg Revenue beat(4)6.11%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)10.15%
Revenue beat(8)4
Avg Revenue beat(8)2.16%
Revenue beat(12)5
Avg Revenue beat(12)1.19%
Revenue beat(16)7
Avg Revenue beat(16)1.12%
PT rev (1m)0%
PT rev (3m)13.42%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)12.93%
EPS NY rev (1m)1.67%
EPS NY rev (3m)13.21%
Revenue NQ rev (1m)7.84%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)8.42%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 10.49 | ||
| P/S | 2.47 | ||
| P/FCF | 4.69 | ||
| P/OCF | 4.69 | ||
| P/B | 3.05 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 14.6 |
EPS(TTM)38.53
EY8.69%
EPS(NY)42.27
Fwd EY9.53%
FCF(TTM)94.44
FCFY21.3%
OCF(TTM)94.59
OCFY21.34%
SpS179.75
BVpS145.44
TBVpS145.44
PEG (NY)1.19
PEG (5Y)5.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 14.17% | ||
| ROCE | 9.18% | ||
| ROIC | 7.02% | ||
| ROICexc | 7.32% | ||
| ROICexgc | 7.35% | ||
| OM | 35.73% | ||
| PM (TTM) | 11.46% | ||
| GM | N/A | ||
| FCFM | 52.54% |
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%
ROICexcg growth 3Y-18.43%
ROICexcg 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-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 6.47% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 142.15% | ||
| Profit Quality | 458.29% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.22 |
F-Score5
WACC8.01%
ROIC/WACC0.88
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)74.98%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%39.51%
EPS Next Y9.7%
EPS Next 2Y13.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.7%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%15.11%
Revenue Next Year16.37%
Revenue Next 2Y10.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.51%
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-5.31%
FCF growth 3Y2.28%
FCF growth 5Y7.66%
OCF growth 1Y-5.47%
OCF growth 3Y2.09%
OCF growth 5Y6.97%