CREDIT ACCEPTANCE CORP (CACC) Stock Fundamental Analysis
USA - NASDAQ:CACC - US2253101016 - Common Stock
451.39 USD
+21.63 (+5.03%)
451.39 USD
0 (0%)
Taking everything into account, CACC scores 4 out of 10 in our fundamental rating. CACC was compared to 55 industry peers in the Consumer Finance industry. CACC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
The Return On Assets of CACC (5.25%) is better than 74.55% of its industry peers.
Looking at the Return On Equity, with a value of 28.75%, CACC belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
CACC has a Return On Invested Capital of 10.46%. This is in the better half of the industry: CACC outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CACC is below the industry average of 11.72%.
The last Return On Invested Capital (10.46%) for CACC is above the 3 year average (8.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.25% | ||
| ROE | 28.75% | ||
| ROIC | 10.46% |
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 better Profit Margin (19.70%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of CACC has declined.
The Operating Margin of CACC (46.11%) is better than 98.18% of its industry peers.
CACC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.11% | ||
| PM (TTM) | 19.7% | ||
| 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.
Compared to 5 years ago, CACC has less shares outstanding
CACC has a worse debt/assets ratio than last year.
2.2 Solvency
CACC has an Altman-Z score of 1.18. This is a bad value and indicates that CACC is not financially healthy and even has some risk of bankruptcy.
CACC's Altman-Z score of 1.18 is fine compared to the rest of the industry. CACC outperforms 67.27% of its industry peers.
The Debt to FCF ratio of CACC is 5.86, which is a neutral value as it means it would take CACC, 5.86 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.86, CACC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
CACC has a Debt/Equity ratio of 3.73. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.73, CACC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.73 | ||
| Debt/FCF | 5.86 | ||
| Altman-Z | 1.18 |
ROIC/WACC1.03
WACC10.18%
2.3 Liquidity
CACC has a Current 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.
The Current ratio of CACC (0.03) is worse than 81.82% of its industry peers.
A Quick Ratio of 0.03 indicates that CACC may have some problems paying its short term obligations.
With a Quick ratio value of 0.03, CACC is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
CACC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.85%.
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 10.30% 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)4.85%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%5.8%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%5.83%
3.2 Future
The Earnings Per Share is expected to grow by 5.73% on average over the next years.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y-0.13%
EPS Next 2Y5.27%
EPS Next 3Y5.73%
EPS Next 5YN/A
Revenue Next Year16.12%
Revenue Next 2Y9%
Revenue Next 3Y5.62%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.08 indicates a correct valuation of CACC.
CACC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.13. CACC is valued rather cheaply when compared to this.
CACC is valuated reasonably with a Price/Forward Earnings ratio of 10.57.
The rest of the industry has a similar Price/Forward Earnings ratio as CACC.
CACC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CACC is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CACC indicates a somewhat cheap valuation: CACC is cheaper than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.67 | ||
| EV/EBITDA | 10.49 |
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)5.64
EPS Next 2Y5.27%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
No dividends for CACC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
451.39
+21.63 (+5.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners67.38%
Inst Owner Change-0.19%
Ins Owners18.64%
Ins Owner Change0%
Market Cap5.07B
Revenue(TTM)2.30B
Net Income(TTM)453.80M
Analysts46.67
Price Target471.75 (4.51%)
Short Float %13.33%
Short Ratio6.43
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)-8.41%
Min EPS beat(2)-13.27%
Max EPS beat(2)-3.54%
EPS beat(4)1
Avg EPS beat(4)0.95%
Min EPS beat(4)-13.27%
Max EPS beat(4)25.8%
EPS beat(8)4
Avg EPS beat(8)6.6%
EPS beat(12)5
Avg EPS beat(12)-1.48%
EPS beat(16)7
Avg EPS beat(16)-4.03%
Revenue beat(2)0
Avg Revenue beat(2)-2.78%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)-1.88%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)6.16%
Revenue beat(8)3
Avg Revenue beat(8)1.96%
Revenue beat(12)4
Avg Revenue beat(12)0.79%
Revenue beat(16)5
Avg Revenue beat(16)0.37%
PT rev (1m)-1.07%
PT rev (3m)-6.61%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.57 | ||
| P/S | 2.2 | ||
| P/FCF | 4.67 | ||
| P/OCF | 4.66 | ||
| P/B | 3.21 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)37.38
EY8.28%
EPS(NY)42.7
Fwd EY9.46%
FCF(TTM)96.73
FCFY21.43%
OCF(TTM)96.9
OCFY21.47%
SpS204.91
BVpS140.44
TBVpS140.45
PEG (NY)N/A
PEG (5Y)5.64
Graham Number343.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.25% | ||
| ROE | 28.75% | ||
| ROCE | 13.67% | ||
| ROIC | 10.46% | ||
| ROICexc | 10.48% | ||
| ROICexgc | 10.53% | ||
| OM | 46.11% | ||
| PM (TTM) | 19.7% | ||
| GM | N/A | ||
| FCFM | 47.2% |
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%
ROICexgc growth 3Y-18.43%
ROICexgc 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.73 | ||
| Debt/FCF | 5.86 | ||
| Debt/EBITDA | 5.41 | ||
| Cap/Depr | 6.93% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 99.98% | ||
| Profit Quality | 239.58% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | 1.18 |
F-Score8
WACC10.18%
ROIC/WACC1.03
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)4.85%
EPS 3Y-13.43%
EPS 5Y2.14%
EPS Q2Q%5.8%
EPS Next Y-0.13%
EPS Next 2Y5.27%
EPS Next 3Y5.73%
EPS Next 5YN/A
Revenue 1Y (TTM)10.3%
Revenue growth 3Y5.23%
Revenue growth 5Y7.75%
Sales Q2Q%5.83%
Revenue Next Year16.12%
Revenue Next 2Y9%
Revenue Next 3Y5.62%
Revenue Next 5YN/A
EBIT growth 1Y59.32%
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-7.54%
FCF growth 3Y2.28%
FCF growth 5Y7.66%
OCF growth 1Y-7.66%
OCF growth 3Y2.09%
OCF growth 5Y6.97%
CREDIT ACCEPTANCE CORP / CACC 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 for CACC stock?
ChartMill assigns a valuation rating of 5 / 10 to CREDIT ACCEPTANCE CORP (CACC). This can be considered as Fairly Valued.
What is the profitability of CACC stock?
CREDIT ACCEPTANCE CORP (CACC) has a profitability rating of 6 / 10.
What is the financial health of CREDIT ACCEPTANCE CORP (CACC) stock?
The financial health rating of CREDIT ACCEPTANCE CORP (CACC) is 3 / 10.