CREDIT ACCEPTANCE CORP (CACC)
US2253101016 - Common Stock
Overall CACC gets a fundamental rating of 4 out of 10. We evaluated CACC against 51 industry peers in the Consumer Finance industry. CACC scores excellent on profitability, but there are concerns on its financial health. CACC has a correct valuation and a medium growth rate.
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.
In the past 5 years CACC always reported a positive cash flow from operatings.
1.2 Ratios
CACC's Return On Assets of 3.76% is amongst the best of the industry. CACC outperforms 82.35% of its industry peers.
CACC has a better Return On Equity (16.31%) than 74.51% of its industry peers.
The Return On Invested Capital of CACC (6.75%) is better than 80.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CACC is above the industry average of 6.52%.
The last Return On Invested Capital (6.75%) for CACC is well below the 3 year average (11.26%), which needs to be investigated, but indicates that CACC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 16.31% | ||
| ROIC | 6.75% |
ROA(3y)8.37%
ROA(5y)7.91%
ROE(3y)33.95%
ROE(5y)29.6%
ROIC(3y)11.26%
ROIC(5y)10.64%
1.3 Margins
CACC has a Profit Margin of 15.04%. This is in the better half of the industry: CACC outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of CACC has declined.
CACC has a better Operating Margin (33.43%) than 94.12% of its industry peers.
In the last couple of years the Operating Margin of CACC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.43% | ||
| PM (TTM) | 15.04% | ||
| GM | N/A |
OM growth 3Y-10.83%
OM growth 5Y-13.96%
PM growth 3Y-15.82%
PM growth 5Y-19.55%
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.
Compared to 1 year ago, CACC has less shares outstanding
Compared to 5 years ago, CACC has less shares outstanding
The debt/assets ratio for CACC has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that CACC is in the distress zone and has some risk of bankruptcy.
CACC has a better Altman-Z score (1.37) than 68.63% of its industry peers.
CACC has a debt to FCF ratio of 4.22. This is a neutral value as CACC would need 4.22 years to pay back of all of its debts.
The Debt to FCF ratio of CACC (4.22) is better than 72.55% of its industry peers.
A Debt/Equity ratio of 2.89 is on the high side and indicates that CACC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.89, CACC is in line with its industry, outperforming 43.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.92
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.04 indicates that CACC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.04, CACC is doing worse than 80.39% of the companies in the same industry.
A Quick Ratio of 0.04 indicates that CACC may have some problems paying its short term obligations.
CACC's Quick ratio of 0.04 is on the low side compared to the rest of the industry. CACC is outperformed by 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
CACC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.47%.
Measured over the past years, CACC shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.66% on average per year.
CACC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.79%.
Measured over the past years, CACC shows a quite strong growth in Revenue. The Revenue has been growing by 8.14% on average per year.
EPS 1Y (TTM)-43.47%
EPS 3Y-2.53%
EPS 5Y-5.66%
EPS growth Q2Q-23.9%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y4.44%
Revenue growth 5Y8.14%
Revenue growth Q2Q7.1%
3.2 Future
Based on estimates for the next years, CACC will show a very strong growth in Earnings Per Share. The EPS will grow by 39.16% on average per year.
CACC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
EPS Next Y71.75%
EPS Next 2Y39.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.31%
Revenue Next 2Y4.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.86, CACC is valued on the expensive side.
Based on the Price/Earnings ratio, CACC is valued a bit more expensive than 68.63% of the companies in the same industry.
CACC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
With a Price/Forward Earnings ratio of 13.31, CACC is valued correctly.
CACC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, CACC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
64.71% of the companies in the same industry are more expensive than CACC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CACC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.16 | ||
| EV/EBITDA | 16.93 |
4.3 Compensation for Growth
CACC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CACC may justify a higher PE ratio.
A more expensive valuation may be justified as CACC's earnings are expected to grow with 39.16% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y39.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CREDIT ACCEPTANCE CORP
NASDAQ:CACC (5/3/2024, 10:05:28 AM)
503.42
+2.26 (+0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 13.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 16.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.43% | ||
| PM (TTM) | 15.04% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-43.47%
EPS 3Y-2.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y71.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.79%
Revenue growth 3Y4.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y