CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
USA - NASDAQ:CACC - US2253101016 - Common Stock
501 USD
-1.05 (-0.21%)
We assign a fundamental rating of 5 out of 10 to CACC. CACC was compared to 54 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 correct valuation and a medium 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.
CACC had positive earnings in each of the past 5 years.
Each year in the past 5 years CACC had a positive operating cash flow.
1.2 Ratios
CACC has a Return On Assets of 4.86%. This is in the better half of the industry: CACC outperforms 72.22% of its industry peers.
CACC's Return On Equity of 27.30% is amongst the best of the industry. CACC outperforms 88.89% of its industry peers.
The Return On Invested Capital of CACC (10.23%) is better than 81.48% of its industry peers.
CACC had an Average Return On Invested Capital over the past 3 years of 8.71%. This is below the industry average of 11.02%.
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
The Profit Margin of CACC (18.69%) is better than 81.48% of its industry peers.
CACC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 44.67%, CACC belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CACC is destroying value.
The number of shares outstanding for CACC has been reduced compared to 1 year ago.
CACC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CACC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that CACC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CACC (1.16) is better than 66.67% of its industry peers.
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.
CACC's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. CACC outperforms 61.11% of its industry peers.
CACC has a Debt/Equity ratio of 3.68. This is a high value indicating a heavy dependency on external financing.
CACC's Debt to Equity ratio of 3.68 is on the low side compared to the rest of the industry. CACC is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.68 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.98
WACC10.43%
2.3 Liquidity
A Current Ratio of 0.07 indicates that CACC may have some problems paying its short term obligations.
With a Current ratio value of 0.07, CACC is not doing good in the industry: 79.63% of the companies in the same industry are doing better.
CACC has a Quick 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 Quick ratio of 0.07. This is in the lower half of the industry: CACC underperforms 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.18% 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 12.63% in the last year.
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
CACC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.88% yearly.
The Revenue is expected to grow by 10.03% on average over the next years. This is quite good.
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
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
The Price/Earnings ratio is 13.59, which indicates a correct valuation of CACC.
Based on the Price/Earnings ratio, CACC is valued a bit more expensive than the industry average as 61.11% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CACC to the average of the S&P500 Index (27.27), we can say CACC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.38, the valuation of CACC can be described as very reasonable.
CACC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CACC to the average of the S&P500 Index (22.77), we can say CACC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CACC is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CACC is valued a bit cheaper than 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.08 | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
CACC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.35
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 |
NASDAQ:CACC (9/16/2025, 4:30:02 PM)
501
-1.05 (-0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners66.05%
Inst Owner Change2.45%
Ins Owners18.07%
Ins Owner Change0.02%
Market Cap5.63B
Analysts46.67
Price Target476.85 (-4.82%)
Short Float %10.86%
Short Ratio5.68
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)-3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.27%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 11.38 | ||
| P/S | 2.48 | ||
| P/FCF | 5.08 | ||
| P/OCF | 5.07 | ||
| P/B | 3.62 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)36.87
EY7.36%
EPS(NY)44.02
Fwd EY8.79%
FCF(TTM)98.59
FCFY19.68%
OCF(TTM)98.74
OCFY19.71%
SpS202.06
BVpS138.32
TBVpS138.32
PEG (NY)N/A
PEG (5Y)6.35
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 | 1.16 |
F-Score8
WACC10.43%
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)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%