(CACC) Credit Acceptance - Ratings and Ratios

Credit Acceptance Corporation is a leading provider of financing programs and related products and services to the automotive industry in the United States. The company operates by advancing funds to automobile dealers in exchange for the right to service the underlying consumer loans, and also purchases these consumer loans from dealers, retaining the amounts collected from consumers. Additionally, the company reinsures vehicle service contracts sold to consumers by dealers on vehicles financed by Credit Acceptance Corporation, further diversifying its revenue streams. With a history dating back to its incorporation in 1972, the company is headquartered in Southfield, Michigan, and serves a wide range of independent and franchised automobile dealers across the country.

From a business perspective, Credit Acceptance Corporations model is centered around providing financing solutions to consumers through auto dealers, leveraging its expertise in credit evaluation and loan servicing. The companys ability to provide financing to consumers who may not qualify for traditional credit sources has positioned it well in the market. Furthermore, its reinsurance business adds another layer of profitability by assuming the risk associated with vehicle service contracts. With a strong presence in the consumer finance sub-industry, Credit Acceptance Corporation is well-established as a key player.

Analyzing the and , we can observe that Credit Acceptance Corporations stock has shown a positive trend, with its last price being $505.60, above its SMA20 and SMA50. The stocks ATR indicates a moderate level of volatility. From a fundamental standpoint, the company has a market capitalization of $5.53 billion and a P/E ratio of 20.32, suggesting a relatively stable valuation. The forward P/E ratio of 10.34 indicates expected growth in earnings. With a return on equity of 17.41%, the company demonstrates a strong ability to generate profits for its shareholders.

Forecasting future performance, we can anticipate that Credit Acceptance Corporation will continue to benefit from its diversified business model and strong position in the consumer finance market. Using the , the stocks upward trend and relatively low volatility suggest potential for continued growth. The supports this outlook, with a reasonable P/E ratio and a strong RoE. As the automotive industry continues to evolve, Credit Acceptance Corporations adaptability and expertise in financing and reinsurance are likely to drive its future success. Therefore, it is forecasted that the stock will continue to appreciate, potentially reaching $550 in the near term, driven by its solid fundamentals and positive technical indicators.