CREDIT ACCEPTANCE CORP (CACC) Fundamental Analysis & Valuation

NASDAQ:CACC • US2253101016

Current stock price

460.505 USD
+15.78 (+3.55%)
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

  • CACC had positive earnings in the past year.
  • CACC had a positive operating cash flow in the past year.
  • In the past 5 years CACC has always been profitable.
  • CACC had a positive operating cash flow in each of the past 5 years.
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 68.52% of its industry peers.
  • CACC's Return On Equity of 27.82% is fine compared to the rest of the industry. CACC outperforms 79.63% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.70%, CACC belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CACC is in line with the industry average of 9.87%.
  • 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

  • CACC has a Profit Margin of 18.29%. This is in the better half of the industry: CACC outperforms 70.37% of its industry peers.
  • In the last couple of years the Profit Margin of CACC has declined.
  • The Operating Margin of CACC (47.63%) is better than 96.30% of its industry peers.
  • CACC's Operating Margin has been stable in the last couple of years.
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) just above the Cost of Capital (WACC), CACC is 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.
  • Compared to 1 year ago, CACC has a worse debt to assets ratio.
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

  • CACC has an Altman-Z score of 0.93. This is a bad value and indicates that CACC is not financially healthy and even has some risk of bankruptcy.
  • CACC has a Altman-Z score of 0.93. This is in the better half of the industry: CACC outperforms 61.11% of its industry peers.
  • CACC has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as CACC would need 6.03 years to pay back of all of its debts.
  • The Debt to FCF ratio of CACC (6.03) is better than 70.37% of its industry peers.
  • A Debt/Equity ratio of 2.74 is on the high side and indicates that CACC has dependencies on debt financing.
  • The Debt to Equity ratio of CACC (2.74) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.74
Debt/FCF 6.03
Altman-Z 0.93
ROIC/WACC1.77
WACC7.72%
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 has a worse Current ratio (0.03) than 81.48% 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.
  • CACC's Quick ratio of 0.03 is on the low side compared to the rest of the industry. CACC is outperformed by 81.48% of its industry peers.
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

  • The earnings per share for CACC have decreased by -6.23% in the last year.
  • The Earnings Per Share has been growing by 8.73% on average over the past years. This is quite good.
  • CACC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
  • 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

  • CACC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.21% yearly.
  • 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

  • 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.
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

  • Based on the Price/Earnings ratio of 12.75, the valuation of CACC can be described as correct.
  • CACC's Price/Earnings ratio is a bit more expensive when compared to the industry. CACC is more expensive than 62.96% 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 26.21.
  • With a Price/Forward Earnings ratio of 10.10, the valuation of CACC can be described as very reasonable.
  • CACC's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.10, CACC is valued rather cheaply.
Industry RankSector Rank
PE 12.75
Fwd PE 10.1
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

  • 72.22% 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 61.11% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.7
EV/EBITDA 9.83
CACC Per share dataCACC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • CACC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of CACC may justify a higher PE ratio.
  • A more expensive valuation may be justified as CACC's earnings are expected to grow with 20.21% in the coming years.
PEG (NY)0.49
PEG (5Y)1.46
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 (4/8/2026, 3:11:27 PM)

460.505

+15.78 (+3.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners78.38%
Inst Owner Change0%
Ins Owners19.88%
Ins Owner Change3.34%
Market Cap4.95B
Revenue(TTM)2.32B
Net Income(TTM)423.90M
Analysts47.5
Price Target476 (3.36%)
Short Float %21.33%
Short Ratio4.96
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 12.75
Fwd PE 10.1
P/S 2.14
P/FCF 4.7
P/OCF 4.69
P/B 3.25
P/tB 3.25
EV/EBITDA 9.83
EPS(TTM)36.13
EY7.85%
EPS(NY)45.61
Fwd EY9.9%
FCF(TTM)97.95
FCFY21.27%
OCF(TTM)98.1
OCFY21.3%
SpS215.55
BVpS141.73
TBVpS141.73
PEG (NY)0.49
PEG (5Y)1.46
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 0.93
F-Score8
WACC7.72%
ROIC/WACC1.77
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 6 / 10 to CREDIT ACCEPTANCE CORP (CACC). This can be considered as Fairly Valued.


How profitable is CREDIT ACCEPTANCE CORP (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.


What is the expected EPS growth for CREDIT ACCEPTANCE CORP (CACC) stock?

The Earnings per Share (EPS) of CREDIT ACCEPTANCE CORP (CACC) is expected to grow by 26.24% in the next year.