CREDIT ACCEPTANCE CORP (CACC) Fundamental Analysis & Valuation

NASDAQ:CACC • US2253101016

Current stock price

443.435 USD
+12.25 (+2.84%)
Last:

This CACC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CACC Profitability Analysis

1.1 Basic Checks

  • In the past year CACC was profitable.
  • In the past year CACC had a positive cash flow from operations.
  • CACC had positive earnings in each of the past 5 years.
  • In the past 5 years CACC always reported a positive cash flow from operatings.
CACC Yearly Net Income VS EBIT VS OCF VS FCFCACC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

1.2 Ratios

  • CACC has a Return On Assets of 4.91%. This is in the better half of the industry: CACC outperforms 66.67% of its industry peers.
  • With a decent Return On Equity value of 27.82%, CACC is doing good in the industry, outperforming 79.63% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 13.70%, CACC belongs to the top of the industry, outperforming 85.19% 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 12.36%.
  • The 3 year average ROIC (9.81%) for CACC is below the current ROIC(13.70%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.91%
ROE 27.82%
ROIC 13.7%
ROA(3y)3.82%
ROA(5y)6.56%
ROE(3y)19.44%
ROE(5y)28.77%
ROIC(3y)9.81%
ROIC(5y)10.98%
CACC Yearly ROA, ROE, ROICCACC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • Looking at the Profit Margin, with a value of 18.29%, CACC is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CACC has declined.
  • CACC has a better Operating Margin (47.63%) than 96.30% of its industry peers.
  • In the last couple of years the Operating Margin of CACC has remained more or less at the same level.
Industry RankSector Rank
OM 47.63%
PM (TTM) 18.29%
GM N/A
OM growth 3Y-0.21%
OM growth 5Y0.2%
PM growth 3Y-14.47%
PM growth 5Y-6.22%
GM growth 3YN/A
GM growth 5YN/A
CACC Yearly Profit, Operating, Gross MarginsCACC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

2. CACC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CACC is creating value.
  • CACC has less shares outstanding than it did 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.
CACC Yearly Shares OutstandingCACC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M
CACC Yearly Total Debt VS Total AssetsCACC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • Based on the Altman-Z score of 0.92, we must say that CACC is in the distress zone and has some risk of bankruptcy.
  • With a decent Altman-Z score value of 0.92, CACC is doing good in the industry, outperforming 62.96% of the companies in the same industry.
  • The Debt to FCF ratio of CACC is 6.03, which is on the high side as it means it would take CACC, 6.03 years of fcf income to pay off all of its debts.
  • CACC has a better Debt to FCF ratio (6.03) than 72.22% of its industry peers.
  • CACC has a Debt/Equity ratio of 2.74. This is a high value indicating a heavy dependency on external financing.
  • CACC has a Debt to Equity ratio (2.74) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.74
Debt/FCF 6.03
Altman-Z 0.92
ROIC/WACC1.81
WACC7.59%
CACC Yearly LT Debt VS Equity VS FCFCACC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 0.03 indicates that CACC may have some problems paying its short term obligations.
  • CACC's Current ratio of 0.03 is on the low side compared to the rest of the industry. CACC is outperformed by 79.63% of its industry peers.
  • CACC has a Quick Ratio of 0.03. 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 0.03, CACC is not doing good in the industry: 79.63% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.03
Quick Ratio 0.03
CACC Yearly Current Assets VS Current LiabilitesCACC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CACC Growth Analysis

3.1 Past

  • CACC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.23%.
  • The Earnings Per Share has been growing by 8.73% on average over the past years. This is quite good.
  • Looking at the last year, CACC shows a small growth in Revenue. The Revenue has grown by 7.16% in the last year.
  • CACC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.78% yearly.
EPS 1Y (TTM)-6.23%
EPS 3Y-2.47%
EPS 5Y8.73%
EPS Q2Q%-12.29%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y8.14%
Revenue growth 5Y6.78%
Sales Q2Q%2.47%

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 20.21% on average per year.
  • CACC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
EPS Next Y26.24%
EPS Next 2Y20.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.51%
Revenue Next 2Y2.03%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CACC Yearly Revenue VS EstimatesCACC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
CACC Yearly EPS VS EstimatesCACC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10 20 30 40 50

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6

4. CACC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.27, which indicates a correct valuation of CACC.
  • 61.11% of the companies in the same industry are cheaper than CACC, based on the Price/Earnings ratio.
  • CACC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.23.
  • CACC is valuated reasonably with a Price/Forward Earnings ratio of 9.72.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CACC is on the same level as its industry peers.
  • CACC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.27
Fwd PE 9.72
CACC Price Earnings VS Forward Price EarningsCACC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CACC indicates a somewhat cheap valuation: CACC is cheaper than 72.22% of the companies listed in the same industry.
  • 62.96% of the companies in the same industry are more expensive than CACC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.53
EV/EBITDA 9.7
CACC Per share dataCACC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • The 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.
  • CACC's earnings are expected to grow with 20.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)1.41
EPS Next 2Y20.21%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CACC Dividend Analysis

5.1 Amount

  • CACC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CACC Fundamentals: All Metrics, Ratios and Statistics

CREDIT ACCEPTANCE CORP

NASDAQ:CACC (3/23/2026, 9:47:55 AM)

443.435

+12.25 (+2.84%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners78.38%
Inst Owner Change8.5%
Ins Owners19.88%
Ins Owner Change3.34%
Market Cap4.77B
Revenue(TTM)2.32B
Net Income(TTM)423.90M
Analysts47.5
Price Target476 (7.34%)
Short Float %20.71%
Short Ratio4.83
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)-8.09%
Min EPS beat(2)-12.63%
Max EPS beat(2)-3.54%
EPS beat(4)0
Avg EPS beat(4)-8.66%
Min EPS beat(4)-13.27%
Max EPS beat(4)-3.54%
EPS beat(8)3
Avg EPS beat(8)1.07%
EPS beat(12)4
Avg EPS beat(12)-5.14%
EPS beat(16)6
Avg EPS beat(16)-5.62%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)-2.42%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)-1.6%
Revenue beat(8)3
Avg Revenue beat(8)1.85%
Revenue beat(12)4
Avg Revenue beat(12)0.64%
Revenue beat(16)5
Avg Revenue beat(16)0.29%
PT rev (1m)0%
PT rev (3m)1.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)0%
EPS NY rev (3m)6.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.45%
Valuation
Industry RankSector Rank
PE 12.27
Fwd PE 9.72
P/S 2.06
P/FCF 4.53
P/OCF 4.52
P/B 3.13
P/tB 3.13
EV/EBITDA 9.7
EPS(TTM)36.13
EY8.15%
EPS(NY)45.61
Fwd EY10.29%
FCF(TTM)97.95
FCFY22.09%
OCF(TTM)98.1
OCFY22.12%
SpS215.55
BVpS141.73
TBVpS141.73
PEG (NY)0.47
PEG (5Y)1.41
Graham Number339.44
Profitability
Industry RankSector Rank
ROA 4.91%
ROE 27.82%
ROCE 18.24%
ROIC 13.7%
ROICexc 13.75%
ROICexgc 13.84%
OM 47.63%
PM (TTM) 18.29%
GM N/A
FCFM 45.44%
ROA(3y)3.82%
ROA(5y)6.56%
ROE(3y)19.44%
ROE(5y)28.77%
ROIC(3y)9.81%
ROIC(5y)10.98%
ROICexc(3y)9.97%
ROICexc(5y)11.09%
ROICexgc(3y)10.02%
ROICexgc(5y)11.17%
ROCE(3y)13.06%
ROCE(5y)14.63%
ROICexgc growth 3Y11.32%
ROICexgc growth 5Y11.16%
ROICexc growth 3Y11.42%
ROICexc growth 5Y11.13%
OM growth 3Y-0.21%
OM growth 5Y0.2%
PM growth 3Y-14.47%
PM growth 5Y-6.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 2.74
Debt/FCF 6.03
Debt/EBITDA 3.69
Cap/Depr 6.02%
Cap/Sales 0.07%
Interest Coverage 2.52
Cash Conversion 93.3%
Profit Quality 248.41%
Current Ratio 0.03
Quick Ratio 0.03
Altman-Z 0.92
F-Score8
WACC7.59%
ROIC/WACC1.81
Cap/Depr(3y)9.18%
Cap/Depr(5y)13.71%
Cap/Sales(3y)0.12%
Cap/Sales(5y)0.19%
Profit Quality(3y)375.35%
Profit Quality(5y)293.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.23%
EPS 3Y-2.47%
EPS 5Y8.73%
EPS Q2Q%-12.29%
EPS Next Y26.24%
EPS Next 2Y20.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.16%
Revenue growth 3Y8.14%
Revenue growth 5Y6.78%
Sales Q2Q%2.47%
Revenue Next Year0.51%
Revenue Next 2Y2.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.82%
EBIT growth 3Y7.91%
EBIT growth 5Y6.99%
EBIT Next Year-6.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.31%
FCF growth 3Y-5.19%
FCF growth 5Y1.52%
OCF growth 1Y-7.32%
OCF growth 3Y-5.22%
OCF growth 5Y1.37%

CREDIT ACCEPTANCE CORP / CACC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CREDIT ACCEPTANCE CORP?

ChartMill assigns a fundamental rating of 4 / 10 to CACC.


What is the valuation status of CREDIT ACCEPTANCE CORP (CACC) stock?

ChartMill assigns a valuation rating of 7 / 10 to CREDIT ACCEPTANCE CORP (CACC). This can be considered as Undervalued.


What is the profitability of CACC stock?

CREDIT ACCEPTANCE CORP (CACC) has a profitability rating of 6 / 10.


Can you provide the financial health for CACC stock?

The financial health rating of CREDIT ACCEPTANCE CORP (CACC) is 3 / 10.