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. There are concerns on the financial health of CACC while its profitability can be described as average. CACC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CACC was profitable.
CACC had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 2.80%, CACC is doing good in the industry, outperforming 66.04% of the companies in the same industry.
CACC has a Return On Equity (14.17%) which is comparable to the rest of the industry.
The Return On Invested Capital of CACC (7.02%) is better than 73.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CACC is in line with the industry average of 8.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 14.17% | ||
| ROIC | 7.02% |
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 Profit Margin of 11.46%. This is comparable to the rest of the industry: CACC outperforms 54.72% of its industry peers.
CACC's Profit Margin has declined in the last couple of years.
CACC has a Operating Margin of 35.73%. This is amongst the best in 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 | 35.73% | ||
| PM (TTM) | 11.46% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CACC is still creating some 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.
The debt/assets ratio for CACC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that CACC is in the distress zone and has some risk of bankruptcy.
CACC has a better Altman-Z score (1.22) than 62.26% of its industry peers.
The Debt to FCF ratio of CACC is 5.59, which is a neutral value as it means it would take CACC, 5.59 years of fcf income to pay off all of its debts.
CACC has a Debt to FCF ratio (5.59) which is in line with its industry peers.
CACC has a Debt/Equity ratio of 3.63. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.63, CACC is not doing good in the industry: 62.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.88
WACC8.01%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CACC may have some problems paying its short term obligations.
CACC has a Current ratio (0.80) which is in line with its industry peers.
CACC has a Quick Ratio of 0.80. 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 0.80, CACC perfoms like the industry average, outperforming 43.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.98% over the past year.
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.
Looking at the last year, CACC shows a quite strong growth in Revenue. The Revenue has grown by 13.70% in the last year.
The Revenue has been growing slightly by 7.75% on average over the past years.
EPS 1Y (TTM)74.98%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%39.51%
Revenue 1Y (TTM)13.7%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%15.11%
3.2 Future
The Earnings Per Share is expected to grow by 13.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.42% on average over the next years. This is quite good.
EPS Next Y9.7%
EPS Next 2Y13.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.37%
Revenue Next 2Y10.42%
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.
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
With a Price/Earnings ratio of 12.26, CACC is valued correctly.
Based on the Price/Earnings ratio, CACC is valued a bit more expensive than 60.38% of the companies in the same industry.
CACC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 11.17, the valuation of CACC can be described as very reasonable.
CACC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, CACC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
64.15% of the companies in the same industry are more expensive than CACC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CACC is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CACC's earnings are expected to grow with 13.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)5.73
EPS Next 2Y13.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
472.19
-9.96 (-2.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.79%
Inst Owner Change0.12%
Ins Owners11.87%
Ins Owner Change6.94%
Market Cap5.68B
Analysts46.67
Price Target493.43 (4.5%)
Short Float %5.73%
Short Ratio6.45
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)10.49%
Min EPS beat(2)-4.82%
Max EPS beat(2)25.8%
EPS beat(4)3
Avg EPS beat(4)10.8%
Min EPS beat(4)-4.82%
Max EPS beat(4)25.8%
EPS beat(8)4
Avg EPS beat(8)-3.38%
EPS beat(12)6
Avg EPS beat(12)-4.61%
EPS beat(16)10
Avg EPS beat(16)5.93%
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)6.16%
Revenue beat(4)3
Avg Revenue beat(4)6.11%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)10.15%
Revenue beat(8)4
Avg Revenue beat(8)2.16%
Revenue beat(12)5
Avg Revenue beat(12)1.19%
Revenue beat(16)7
Avg Revenue beat(16)1.12%
PT rev (1m)0%
PT rev (3m)13.42%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)12.93%
EPS NY rev (1m)1.67%
EPS NY rev (3m)13.21%
Revenue NQ rev (1m)7.84%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)8.42%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 11.17 | ||
| P/S | 2.63 | ||
| P/FCF | 5 | ||
| P/OCF | 4.99 | ||
| P/B | 3.25 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 14.6 |
EPS(TTM)38.53
EY8.16%
EPS(NY)42.27
Fwd EY8.95%
FCF(TTM)94.44
FCFY20%
OCF(TTM)94.59
OCFY20.03%
SpS179.75
BVpS145.44
TBVpS145.44
PEG (NY)1.26
PEG (5Y)5.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 14.17% | ||
| ROCE | 9.18% | ||
| ROIC | 7.02% | ||
| ROICexc | 7.32% | ||
| ROICexgc | 7.35% | ||
| OM | 35.73% | ||
| PM (TTM) | 11.46% | ||
| GM | N/A | ||
| FCFM | 52.54% |
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-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 6.47% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 142.15% | ||
| Profit Quality | 458.29% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.22 |
F-Score5
WACC8.01%
ROIC/WACC0.88
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)74.98%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%39.51%
EPS Next Y9.7%
EPS Next 2Y13.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.7%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%15.11%
Revenue Next Year16.37%
Revenue Next 2Y10.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.51%
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-5.31%
FCF growth 3Y2.28%
FCF growth 5Y7.66%
OCF growth 1Y-5.47%
OCF growth 3Y2.09%
OCF growth 5Y6.97%