CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
NASDAQ:CACC - Nasdaq - US2253101016 - Common Stock
Taking everything into account, CACC scores 5 out of 10 in our fundamental rating. CACC was compared to 53 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 is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CACC was profitable.
CACC had a positive operating cash flow in the past year.
In the past 5 years CACC has always been profitable.
CACC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.18%, CACC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
With a Return On Equity value of 11.52%, CACC perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.13%, CACC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CACC is above the industry average of 7.34%.
The last Return On Invested Capital (6.13%) 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 | 2.18% | ||
| ROE | 11.52% | ||
| ROIC | 6.13% |
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's Profit Margin of 9.08% is in line compared to the rest of the industry. CACC outperforms 57.69% of its industry peers.
CACC's Profit Margin has declined in the last couple of years.
The Operating Margin of CACC (31.92%) is better than 92.31% of its industry peers.
In the last couple of years the Operating Margin of CACC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.92% | ||
| PM (TTM) | 9.08% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CACC 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 about the same debt to assets ratio.
2.2 Solvency
CACC has an Altman-Z score of 1.18. This is a bad value and indicates that CACC is not financially healthy and even has some risk of bankruptcy.
CACC's Altman-Z score of 1.18 is fine compared to the rest of the industry. CACC outperforms 63.46% of its industry peers.
CACC has a debt to FCF ratio of 5.48. This is a neutral value as CACC would need 5.48 years to pay back of all of its debts.
CACC's Debt to FCF ratio of 5.48 is in line compared to the rest of the industry. CACC outperforms 55.77% of its industry peers.
CACC has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
CACC's Debt to Equity ratio of 3.80 is on the low side compared to the rest of the industry. CACC is outperformed by 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.83
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.51 indicates that CACC may have some problems paying its short term obligations.
With a Current ratio value of 0.51, CACC is not doing good in the industry: 67.31% of the companies in the same industry are doing better.
CACC has a Quick Ratio of 0.51. This is a bad value and indicates that CACC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, CACC is not doing good in the industry: 67.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.65% over the past year.
CACC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.66% yearly.
CACC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.70%.
CACC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.14% yearly.
EPS 1Y (TTM)46.65%
EPS 3Y-2.53%
EPS 5Y-5.66%
EPS Q2Q%61.88%
Revenue 1Y (TTM)11.7%
Revenue growth 3Y4.44%
Revenue growth 5Y8.14%
Sales Q2Q%14.98%
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 27.06% on average per year.
The Revenue is expected to grow by 9.98% on average over the next years. This is quite good.
EPS Next Y69.96%
EPS Next 2Y30.21%
EPS Next 3Y27.06%
EPS Next 5YN/A
Revenue Next Year13.83%
Revenue Next 2Y11.84%
Revenue Next 3Y9.98%
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
With a Price/Earnings ratio of 13.60, CACC is valued correctly.
CACC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CACC to the average of the S&P500 Index (27.96), we can say CACC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.99, the valuation of CACC can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as CACC.
CACC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
CACC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CACC is cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CACC is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.15 | ||
| EV/EBITDA | 17.23 |
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.
CACC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CACC's earnings are expected to grow with 27.06% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y30.21%
EPS Next 3Y27.06%
5. Dividend
5.1 Amount
No dividends for CACC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CREDIT ACCEPTANCE CORP
NASDAQ:CACC (1/17/2025, 8:00:01 PM)
After market: 484.82 0 (0%)484.82
+2.58 (+0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners66.24%
Inst Owner Change0%
Ins Owners9.81%
Ins Owner Change5.58%
Market Cap5.87B
Analysts46.67
Price Target435.03 (-10.27%)
Short Float %5.74%
Short Ratio6.75
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)4.18%
Min EPS beat(2)-4.82%
Max EPS beat(2)13.19%
EPS beat(4)3
Avg EPS beat(4)12.25%
Min EPS beat(4)-4.82%
Max EPS beat(4)31.63%
EPS beat(8)4
Avg EPS beat(8)-2.7%
EPS beat(12)6
Avg EPS beat(12)-5.7%
EPS beat(16)10
Avg EPS beat(16)6.08%
Revenue beat(2)1
Avg Revenue beat(2)4.49%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)10.15%
Revenue beat(4)2
Avg Revenue beat(4)4.18%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)10.15%
Revenue beat(8)3
Avg Revenue beat(8)1.31%
Revenue beat(12)4
Avg Revenue beat(12)0.58%
Revenue beat(16)7
Avg Revenue beat(16)0.87%
PT rev (1m)0%
PT rev (3m)-7.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 12.99 | ||
| P/S | 2.81 | ||
| P/FCF | 5.15 | ||
| P/OCF | 5.14 | ||
| P/B | 3.57 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 17.23 |
EPS(TTM)35.65
EY7.35%
EPS(NY)37.34
Fwd EY7.7%
FCF(TTM)94.15
FCFY19.42%
OCF(TTM)94.38
OCFY19.47%
SpS172.43
BVpS135.96
TBVpS135.96
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 11.52% | ||
| ROCE | 8.01% | ||
| ROIC | 6.13% | ||
| ROICexc | 6.25% | ||
| ROICexgc | 6.28% | ||
| OM | 31.92% | ||
| PM (TTM) | 9.08% | ||
| GM | N/A | ||
| FCFM | 54.6% |
ROA(3y)8.37%
ROA(5y)7.91%
ROE(3y)33.95%
ROE(5y)29.6%
ROIC(3y)11.26%
ROIC(5y)10.64%
ROICexc(3y)11.28%
ROICexc(5y)10.72%
ROICexgc(3y)11.37%
ROICexgc(5y)10.79%
ROCE(3y)14.7%
ROCE(5y)13.9%
ROICexcg growth 3Y-1.89%
ROICexcg growth 5Y-7.62%
ROICexc growth 3Y-1.95%
ROICexc growth 5Y-7.62%
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
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 9 | ||
| Cap/Depr | 10.14% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | 1.91 | ||
| Cash Conversion | 164.66% | ||
| Profit Quality | 601.32% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.18 |
F-Score5
WACC7.39%
ROIC/WACC0.83
Cap/Depr(3y)18.68%
Cap/Depr(5y)42.28%
Cap/Sales(3y)0.26%
Cap/Sales(5y)0.62%
Profit Quality(3y)253.59%
Profit Quality(5y)222.5%
High Growth Momentum
Growth
EPS 1Y (TTM)46.65%
EPS 3Y-2.53%
EPS 5Y-5.66%
EPS Q2Q%61.88%
EPS Next Y69.96%
EPS Next 2Y30.21%
EPS Next 3Y27.06%
EPS Next 5YN/A
Revenue 1Y (TTM)11.7%
Revenue growth 3Y4.44%
Revenue growth 5Y8.14%
Sales Q2Q%14.98%
Revenue Next Year13.83%
Revenue Next 2Y11.84%
Revenue Next 3Y9.98%
Revenue Next 5YN/A
EBIT growth 1Y2.33%
EBIT growth 3Y-6.87%
EBIT growth 5Y-6.95%
EBIT Next Year41.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.6%
FCF growth 3Y7.1%
FCF growth 5Y12.07%
OCF growth 1Y5.53%
OCF growth 3Y6.91%
OCF growth 5Y11.33%