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 correct valuation and a medium growth rate.
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.
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 better Return On Assets (2.18%) than 61.54% of its industry peers.
CACC has a Return On Equity (11.52%) which is comparable to the rest of the industry.
The Return On Invested Capital of CACC (6.13%) is better than 76.92% 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 7.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 11.52% | ||
| ROIC | 6.13% |
ROA(3y)4.77%
ROA(5y)6.71%
ROE(3y)21.16%
ROE(5y)26.86%
ROIC(3y)8.31%
ROIC(5y)9.81%
1.3 Margins
Looking at the Profit Margin, with a value of 9.08%, CACC is in line with its industry, outperforming 59.62% of the companies in the same industry.
In the last couple of years the Profit Margin of CACC has declined.
CACC's Operating Margin of 31.92% is amongst the best of the industry. CACC outperforms 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-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) just above the Cost of Capital (WACC), CACC is creating some value.
Compared to 1 year ago, CACC has less shares outstanding
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 1.21, we must say that CACC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CACC (1.21) is better than 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 has a Debt to FCF ratio (5.48) which is in line with its industry peers.
CACC has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.80, CACC is doing worse than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.75
WACC8.22%
2.3 Liquidity
CACC has a Current 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.
CACC has a Current ratio of 0.51. This is in the lower half of the industry: CACC underperforms 67.31% of its industry peers.
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.
The Quick ratio of CACC (0.51) is worse than 67.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
CACC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.98%, which is quite impressive.
CACC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.14% yearly.
The Revenue has grown by 13.70% in the past year. This is quite good.
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 12.65% on average over the next years. This is quite good.
Based on estimates for the next years, CACC will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y7.89%
EPS Next 2Y12.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.33%
Revenue Next 2Y6.3%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.86, which indicates a correct valuation of CACC.
The rest of the industry has a similar Price/Earnings ratio as CACC.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CACC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.92, the valuation of CACC can be described as very reasonable.
CACC's Price/Forward Earnings ratio is in line with the industry average.
CACC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CACC.
Based on the Price/Free Cash Flow ratio, CACC is valued a bit cheaper than 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.24 | ||
| EV/EBITDA | 17.69 |
4.3 Compensation for Growth
CACC's 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 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)6.01
EPS Next 2Y12.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CACC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
495.56
-18.13 (-3.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.79%
Inst Owner Change-0.79%
Ins Owners11.87%
Ins Owner Change6.99%
Market Cap5.97B
Analysts46.67
Price Target493.43 (-0.43%)
Short Float %5.32%
Short Ratio7.49
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)2.34%
PT rev (3m)-2.93%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)2.96%
EPS NY rev (1m)11.34%
EPS NY rev (3m)13.56%
Revenue NQ rev (1m)-7.7%
Revenue NQ rev (3m)-7.08%
Revenue NY rev (1m)-9.36%
Revenue NY rev (3m)-9.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 11.92 | ||
| P/S | 2.86 | ||
| P/FCF | 5.24 | ||
| P/OCF | 5.22 | ||
| P/B | 3.63 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 17.69 |
EPS(TTM)38.53
EY7.78%
EPS(NY)41.57
Fwd EY8.39%
FCF(TTM)94.61
FCFY19.09%
OCF(TTM)94.85
OCFY19.14%
SpS173.29
BVpS136.64
TBVpS136.64
PEG (NY)1.63
PEG (5Y)6.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 11.52% | ||
| ROCE | 8.01% | ||
| ROIC | 6.13% | ||
| ROICexc | 6.25% | ||
| ROICexgc | 6.27% | ||
| OM | 31.92% | ||
| PM (TTM) | 9.08% | ||
| GM | N/A | ||
| FCFM | 54.6% |
ROA(3y)4.77%
ROA(5y)6.71%
ROE(3y)21.16%
ROE(5y)26.86%
ROIC(3y)8.31%
ROIC(5y)9.81%
ROICexc(3y)8.42%
ROICexc(5y)9.89%
ROICexgc(3y)8.47%
ROICexgc(5y)9.95%
ROCE(3y)10.85%
ROCE(5y)12.81%
ROICexcg growth 3Y-22.9%
ROICexcg growth 5Y-8.6%
ROICexc growth 3Y-22.81%
ROICexc growth 5Y-8.6%
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 | 3.8 | ||
| 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 | 1.21 |
F-Score5
WACC8.22%
ROIC/WACC0.75
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)74.98%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%39.51%
EPS Next Y7.89%
EPS Next 2Y12.65%
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 Year7.33%
Revenue Next 2Y6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.33%
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-3.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.09%
OCF growth 3YN/A
OCF growth 5YN/A