CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
NASDAQ:CACC - US2253101016 - Common Stock
514.73 USD
+4.72 (+0.93%)
514.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CACC. CACC was compared to 54 industry peers in the Consumer Finance industry. There are concerns on the financial health of CACC while its profitability can be described as average. 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.
CACC had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.86%, CACC is doing good in the industry, outperforming 72.22% of the companies in the same industry.
CACC has a Return On Equity of 27.30%. This is amongst the best in the industry. CACC outperforms 88.89% of its industry peers.
CACC's Return On Invested Capital of 10.23% is amongst the best of the industry. CACC outperforms 81.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CACC is below the industry average of 10.74%.
The 3 year average ROIC (8.71%) for CACC is below the current ROIC(10.23%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 18.69%, CACC belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
CACC's Profit Margin has declined in the last couple of years.
CACC's Operating Margin of 44.67% is amongst the best of the industry. CACC outperforms 96.30% of its industry peers.
In the last couple of years the Operating Margin of CACC has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CACC is creating some value.
CACC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CACC has less shares outstanding
The debt/assets ratio for CACC is higher compared to a year ago.
2.2 Solvency
CACC has an Altman-Z score of 1.17. This is a bad value and indicates that CACC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.17, CACC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CACC has a debt to FCF ratio of 5.84. This is a neutral value as CACC would need 5.84 years to pay back of all of its debts.
The Debt to FCF ratio of CACC (5.84) is better than 61.11% of its industry peers.
A Debt/Equity ratio of 3.68 is on the high side and indicates that CACC has dependencies on debt financing.
CACC's Debt to Equity ratio of 3.68 is on the low side compared to the rest of the industry. CACC is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 1.17 |
ROIC/WACC1.17
WACC8.72%
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 79.63% of its industry peers.
A Quick Ratio of 0.07 indicates that CACC may have some problems paying its short term obligations.
With a Quick ratio value of 0.07, CACC is not doing good in the industry: 79.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
CACC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.18%, which is quite good.
The Earnings Per Share has been growing slightly by 2.14% on average over the past years.
CACC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.63%.
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 6.88% on average per year.
The Revenue is expected to grow by 10.03% on average over the next years. This is quite good.
EPS Next Y-0.1%
EPS Next 2Y6.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.85%
Revenue Next 2Y10.03%
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
Based on the Price/Earnings ratio of 13.96, the valuation of CACC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CACC indicates a slightly more expensive valuation: CACC is more expensive than 61.11% of the companies listed in the same industry.
CACC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.69 indicates a reasonable valuation of CACC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CACC is on the same level as its industry peers.
CACC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CACC indicates a somewhat cheap valuation: CACC is cheaper than 70.37% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CACC indicates a somewhat cheap valuation: CACC is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.22 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
The decent profitability rating of CACC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.52
EPS Next 2Y6.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
514.73
+4.72 (+0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners66.05%
Inst Owner Change-80.03%
Ins Owners18.07%
Ins Owner Change0.03%
Market Cap5.79B
Analysts46.67
Price Target476.85 (-7.36%)
Short Float %9.89%
Short Ratio3.95
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)-5.6%
PT rev (3m)-3.66%
EPS NQ rev (1m)-5.27%
EPS NQ rev (3m)-7.12%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)9.26%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.69 | ||
| P/S | 2.55 | ||
| P/FCF | 5.22 | ||
| P/OCF | 5.21 | ||
| P/B | 3.72 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)36.87
EY7.16%
EPS(NY)44.02
Fwd EY8.55%
FCF(TTM)98.59
FCFY19.15%
OCF(TTM)98.74
OCFY19.18%
SpS202.06
BVpS138.32
TBVpS138.32
PEG (NY)N/A
PEG (5Y)6.52
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%
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-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 | 1.17 |
F-Score8
WACC8.72%
ROIC/WACC1.17
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-0.1%
EPS Next 2Y6.88%
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 Year16.85%
Revenue Next 2Y10.03%
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%