CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
NASDAQ:CACC - Nasdaq - US2253101016 - Common Stock - Currency: USD
Overall CACC gets a fundamental rating of 4 out of 10. We evaluated CACC against 53 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
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.
In the past 5 years CACC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.13%, CACC is doing good in the industry, outperforming 69.81% of the companies in the same industry.
The Return On Equity of CACC (16.94%) is better than 73.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.50%, CACC is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
CACC had an Average Return On Invested Capital over the past 3 years of 8.71%. This is in line with the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 16.94% | ||
| ROIC | 8.5% |
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 (13.03%) than 60.38% of its industry peers.
CACC's Profit Margin has declined in the last couple of years.
CACC's Operating Margin of 38.15% is amongst the best of the industry. CACC outperforms 92.45% of its industry peers.
CACC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.15% | ||
| PM (TTM) | 13.03% | ||
| 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.
Compared to 1 year ago, CACC has less shares outstanding
Compared to 5 years ago, CACC has less shares outstanding
Compared to 1 year ago, CACC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that CACC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CACC (1.08) is better than 67.92% of its industry peers.
CACC has a debt to FCF ratio of 5.72. This is a neutral value as CACC would need 5.72 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.72, CACC is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
A Debt/Equity ratio of 3.28 is on the high side and indicates that CACC has dependencies on debt financing.
CACC has a Debt to Equity ratio of 3.28. This is comparable to the rest of the industry: CACC outperforms 41.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.98
WACC8.67%
2.3 Liquidity
CACC has a Current Ratio of 0.33. 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 has a worse Current ratio (0.33) than 71.70% of its industry peers.
A Quick Ratio of 0.33 indicates that CACC may have some problems paying its short term obligations.
CACC has a worse Quick ratio (0.33) than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.94% 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.
CACC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.77%.
CACC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
EPS 1Y (TTM)62.94%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%0.75%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%12.42%
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 10.18% yearly.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y4.14%
EPS Next 2Y10.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.71%
Revenue Next 2Y10.27%
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.
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
CACC is valuated correctly with a Price/Earnings ratio of 12.98.
CACC's Price/Earnings is on the same level as the industry average.
CACC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.51.
A Price/Forward Earnings ratio of 10.71 indicates a reasonable valuation of CACC.
CACC's Price/Forward Earnings is on the same level as the industry average.
CACC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CACC is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CACC is valued a bit cheaper than 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.14
PEG (5Y)6.07
EPS Next 2Y10.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
501.11
-13.11 (-2.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners73.52%
Inst Owner Change0%
Ins Owners12%
Ins Owner Change1.55%
Market Cap5.81B
Analysts46.67
Price Target494.96 (-1.23%)
Short Float %11.09%
Short Ratio3.72
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)10.31%
Min EPS beat(2)-5.18%
Max EPS beat(2)25.8%
EPS beat(4)2
Avg EPS beat(4)7.25%
Min EPS beat(4)-5.18%
Max EPS beat(4)25.8%
EPS beat(8)4
Avg EPS beat(8)-2.11%
EPS beat(12)5
Avg EPS beat(12)-6.58%
EPS beat(16)9
Avg EPS beat(16)2.72%
Revenue beat(2)1
Avg Revenue beat(2)2.28%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)6.16%
Revenue beat(4)2
Avg Revenue beat(4)3.38%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)10.15%
Revenue beat(8)4
Avg Revenue beat(8)2.32%
Revenue beat(12)4
Avg Revenue beat(12)1%
Revenue beat(16)6
Avg Revenue beat(16)0.83%
PT rev (1m)0%
PT rev (3m)0.31%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 10.71 | ||
| P/S | 2.61 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.95 | ||
| P/B | 3.4 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)38.6
EY7.7%
EPS(NY)46.77
Fwd EY9.33%
FCF(TTM)101.06
FCFY20.17%
OCF(TTM)101.22
OCFY20.2%
SpS191.85
BVpS147.49
TBVpS147.49
PEG (NY)3.14
PEG (5Y)6.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 16.94% | ||
| ROCE | 11.1% | ||
| ROIC | 8.5% | ||
| ROICexc | 9.13% | ||
| ROICexgc | 9.17% | ||
| OM | 38.15% | ||
| PM (TTM) | 13.03% | ||
| GM | N/A | ||
| FCFM | 52.68% |
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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 6.41 | ||
| Cap/Depr | 6.52% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 133.94% | ||
| Profit Quality | 404.38% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.08 |
F-Score8
WACC8.67%
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)62.94%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%0.75%
EPS Next Y4.14%
EPS Next 2Y10.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.77%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%12.42%
Revenue Next Year16.71%
Revenue Next 2Y10.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34%
EBIT growth 3Y-18.46%
EBIT growth 5Y-6.02%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.34%
FCF growth 3Y2.28%
FCF growth 5Y7.66%
OCF growth 1Y1.29%
OCF growth 3Y2.09%
OCF growth 5Y6.97%