CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
USA - NASDAQ:CACC - US2253101016 - Common Stock
492.23 USD
-4.14 (-0.83%)
Taking everything into account, CACC scores 5 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CACC had positive earnings in the past year.
In the past year CACC had a positive cash flow from operations.
In the past 5 years CACC has always been profitable.
Each year in the past 5 years CACC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.86%, CACC is in the better half of the industry, outperforming 72.73% 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 89.09% of its industry peers.
With an excellent Return On Invested Capital value of 10.23%, CACC belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CACC is below the industry average of 11.02%.
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
With an excellent Profit Margin value of 18.69%, CACC belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of CACC has declined.
The Operating Margin of CACC (44.67%) is better than 96.36% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CACC 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.
CACC has a worse debt/assets ratio than last year.
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.
The Altman-Z score of CACC (1.16) is better than 67.27% of its industry peers.
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.
With a decent Debt to FCF ratio value of 5.84, CACC is doing good in the industry, outperforming 61.82% 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's Debt to Equity ratio of 3.68 is on the low side compared to the rest of the industry. CACC is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.98
WACC10.45%
2.3 Liquidity
A Current Ratio of 0.07 indicates that CACC may have some problems paying its short term obligations.
The Current ratio of CACC (0.07) is worse than 78.18% of its industry peers.
A Quick Ratio of 0.07 indicates that CACC may have some problems paying its short term obligations.
CACC's Quick 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.
| 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.
CACC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.14% yearly.
The Revenue has grown by 12.63% in the past year. This is quite good.
CACC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
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.
CACC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.03% yearly.
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
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.
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 13.35 indicates a correct valuation of CACC.
Compared to the rest of the industry, the Price/Earnings ratio of CACC is on the same level as its industry peers.
CACC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 11.18, the valuation of CACC can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as CACC.
The average S&P500 Price/Forward Earnings ratio is at 22.87. CACC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.18 |
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 70.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CACC is valued a bit cheaper than 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.99 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
The decent profitability rating of CACC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.24
EPS Next 2Y6.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for CACC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CACC (9/23/2025, 2:17:28 PM)
492.23
-4.14 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners66.05%
Inst Owner Change2.45%
Ins Owners18.07%
Ins Owner Change0.02%
Market Cap5.53B
Analysts46.67
Price Target476.85 (-3.12%)
Short Float %10.86%
Short Ratio5.68
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)-3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.18 | ||
| P/S | 2.44 | ||
| P/FCF | 4.99 | ||
| P/OCF | 4.99 | ||
| P/B | 3.56 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)36.87
EY7.49%
EPS(NY)44.02
Fwd EY8.94%
FCF(TTM)98.59
FCFY20.03%
OCF(TTM)98.74
OCFY20.06%
SpS202.06
BVpS138.32
TBVpS138.32
PEG (NY)N/A
PEG (5Y)6.24
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 | 1.16 |
F-Score8
WACC10.45%
ROIC/WACC0.98
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%