CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
USA - NASDAQ:CACC - US2253101016 - Common Stock
491.32 USD
+15.56 (+3.27%)
491.32 USD
0 (0%)
CACC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
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 4.86%, CACC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
With an excellent Return On Equity value of 27.30%, CACC belongs to the best of the industry, outperforming 89.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.23%, CACC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CACC is below the industry average of 10.98%.
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
CACC's Profit Margin of 18.69% is fine compared to the rest of the industry. CACC outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of CACC has declined.
CACC has a better Operating Margin (44.67%) 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.
The number of shares outstanding for CACC has been reduced compared to 1 year ago.
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
CACC has an Altman-Z score of 1.15. This is a bad value and indicates that CACC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, CACC is in the better half of the industry, outperforming 67.27% 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.
With a decent Debt to FCF ratio value of 5.84, CACC is doing good in the industry, outperforming 63.64% 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 has a worse Debt to Equity ratio (3.68) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.99
WACC10.34%
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 has a worse Current ratio (0.07) 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 has a worse Quick ratio (0.07) than 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.
Measured over the past 5 years, CACC shows a small growth in Earnings Per Share. The EPS has been growing by 2.14% on average per year.
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.
Based on estimates for the next years, CACC will show a quite strong growth in Revenue. The Revenue will grow by 10.03% on average per year.
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.
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
The Price/Earnings ratio is 13.33, which indicates a correct valuation of CACC.
CACC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.42, CACC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.16, which indicates a very decent 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.
When comparing the Price/Forward Earnings ratio of CACC to the average of the S&P500 Index (22.94), we can say CACC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CACC is valued a bit cheaper than 70.91% of the companies in the same industry.
CACC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CACC is cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.98 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
The decent profitability rating of CACC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.23
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 |
491.32
+15.56 (+3.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners67.38%
Inst Owner Change0%
Ins Owners18.64%
Ins Owner Change0.04%
Market Cap5.52B
Analysts46.67
Price Target476.85 (-2.95%)
Short Float %11.66%
Short Ratio6.05
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)-5.6%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.16 | ||
| P/S | 2.43 | ||
| P/FCF | 4.98 | ||
| P/OCF | 4.98 | ||
| P/B | 3.55 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)36.87
EY7.5%
EPS(NY)44.02
Fwd EY8.96%
FCF(TTM)98.59
FCFY20.07%
OCF(TTM)98.74
OCFY20.1%
SpS202.06
BVpS138.32
TBVpS138.32
PEG (NY)N/A
PEG (5Y)6.23
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 | 1.15 |
F-Score8
WACC10.34%
ROIC/WACC0.99
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%