(CACC) Credit Acceptance - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NASDAQ (USA) | Market Cap: 5.732m USD | Total Return: 10.5% in 12m
Avg Turnover: 69.5M
EPS Trend: 88.3%
Qual. Beats: 0
Rev. Trend: 98.7%
Qual. Beats: 0
Warnings
Choppy
Tailwinds
No distinct edge detected
Credit Acceptance Corporation (CACC) provides financing programs and secondary market services to franchised and independent automobile dealers across the United States. Founded in 1972, the company operates primarily by advancing capital to dealers in exchange for servicing rights on consumer loans or purchasing those loans outright to collect future payments. The business model also includes reinsuring vehicle service contracts for the automobiles it finances.
Operating within the consumer finance sector, the company focuses on the subprime auto lending market, where credit risk is mitigated through dealer risk-sharing arrangements. This dealer-participant model differs from traditional direct lending by requiring dealers to maintain a vested interest in the performance of the loan portfolio. Further analysis of these risk-adjusted returns is available at ValueRay for those evaluating the companys long-term valuation.
- Consumer credit quality impacts loan collection rates and net yields
- Interest rate fluctuations drive cost of funds for asset-backed securitizations
- Regulatory scrutiny of subprime lending practices increases legal and compliance costs
- Dealer enrollment growth expands loan origination volume and market share
- Used car price volatility affects recovery values on repossessed vehicle collateral
| Net Income: 453.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.56 > 1.0 |
| NWC/Revenue: 275.1% < 20% (prev 391.7%; Δ -116.6% < -1%) |
| CFO/TA 0.12 > 3% & CFO 1.06b > Net Income 453.4m |
| Net Debt (6.38b) to EBITDA (833.5m): 7.66 < 3 |
| Current Ratio: 3.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (11.0m) vs 12m ago -10.79% < -2% |
| Gross Margin: 80.31% > 18% (prev 0.62%; Δ 7.97k% > 0.5%) |
| Asset Turnover: 25.76% > 50% (prev 23.71%; Δ 2.05% > 0%) |
| Interest Coverage Ratio: 3.63 > 6 (EBITDA TTM 833.5m / Interest Expense TTM 222.2m) |
| A: 0.73 (Total Current Assets 8.54b - Total Current Liabilities 2.18b) / Total Assets 8.69b |
| B: 0.12 (Retained Earnings 1.08b / Total Assets 8.69b) |
| C: 0.09 (EBIT TTM 806.7m / Avg Total Assets 8.98b) |
| D: 0.15 (Book Value of Equity 1.08b / Total Liabilities 7.18b) |
| Altman-Z'' = 5.97 = AAA |
| DSRI: 1.18k (Receivables 7.99b/6.40m, Revenue 2.31b/2.19b) |
| GMI: 0.77 (GM 80.31% / 62.02%) |
| AQI: 4.01 (AQ_t 0.02 / AQ_t-1 0.00) |
| SGI: 1.05 (Revenue 2.31b / 2.19b) |
| TATA: -0.07 (NI 453.4m - CFO 1.06b) / TA 8.69b) |
| Beneish M = 972.6 (Cap -4..+1) = D |
As of May 26, 2026, the stock is trading at USD 544.80 with a total of 66,600 shares traded.
Over the past week, the price has changed by -0.55%,
over one month by +5.74%,
over three months by +10.21% and
over the past year by +10.45%.
Credit Acceptance has received a consensus analysts rating of 2.50. Therefore, it is recommended to sell CACC.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 536.7 | -1.5% |
P/E Trailing = 13.6585
P/E Forward = 10.7527
P/S = 4.4931
P/B = 3.8545
P/EG = 1.154
Revenue TTM = 2.31b USD
EBIT TTM = 806.7m USD
EBITDA TTM = 833.5m USD
Long Term Debt = 6.41b USD (from longTermDebt, last quarter)
Short Term Debt = 2.18b USD (from shortTermDebt, last fiscal year)
Debt = 6.41b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.38b USD (calculated: Debt 6.41b - CCE 25.7m)
Enterprise Value = 12.1b USD (5.73b + Debt 6.41b - CCE 25.7m)
Interest Coverage Ratio = 3.63 (Ebit TTM 806.7m / Interest Expense TTM 222.2m)
EV/FCF = 11.51x (Enterprise Value 12.1b / FCF TTM 1.05b)
FCF Yield = 8.69% (FCF TTM 1.05b / Enterprise Value 12.1b)
FCF Margin = 45.53% (FCF TTM 1.05b / Revenue TTM 2.31b)
Net Margin = 19.61% (Net Income TTM 453.4m / Revenue TTM 2.31b)
Gross Margin = 80.31% ((Revenue TTM 2.31b - Cost of Revenue TTM 455.2m) / Revenue TTM)
Gross Margin QoQ = none% (prev none%)
Tobins Q-Ratio = 1.39 (Enterprise Value 12.1b / Total Assets 8.69b)
Interest Expense / Debt = 3.47% (Interest Expense 222.2m / Debt 6.41b)
Taxrate = 22.40% (39.2m / 175.0m)
NOPAT = 626.0m (EBIT 806.7m * (1 - 22.40%))
Current Ratio = 3.91 (Total Current Assets 8.54b / Total Current Liabilities 2.18b)
Debt / Equity = 4.23 (Debt 6.41b / totalStockholderEquity, last quarter 1.51b)
Debt / EBITDA = 7.66 (Net Debt 6.38b / EBITDA 833.5m)
Debt / FCF = 6.06 (Net Debt 6.38b / FCF TTM 1.05b)
Total Stockholder Equity = 1.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.05% (Net Income 453.4m / Total Assets 8.69b)
RoE = 29.39% (Net Income TTM 453.4m / Total Stockholder Equity 1.54b)
RoCE = 10.15% (EBIT 806.7m / Capital Employed (Equity 1.54b + L.T.Debt 6.41b))
RoIC = 5.99% (NOPAT 626.0m / Invested Capital 10.4b)
WACC = 6.39% (E(5.73b)/V(12.1b) * Re(10.52%) + D(6.41b)/V(12.1b) * Rd(3.47%) * (1-Tc(0.22)))
Discount Rate = 10.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -6.81%
[DCF] Terminal Value 73.93% ; FCFF base≈1.10b ; Y1≈1.01b ; Y5≈894.2m
[DCF] Fair Price = 746.7 (EV 14.2b - Net Debt 6.38b = Equity 7.81b / Shares 10.5m; r=8.35% [WACC [floored]]; 5y FCF grow -10.21% → 2.50% )
EPS Correlation: 88.34 | EPS CAGR: 25.68% | SUE: 0.09 | # QB: 0
Revenue Correlation: 98.73 | Revenue CAGR: 10.08% | SUE: -0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=11.85 | Chg30d=+6.09% | Revisions=+20% | Analysts=3
EPS next Quarter (2026-09-30): EPS=12.25 | Chg30d=+6.24% | Revisions=-20% | Analysts=3
EPS current Year (2026-12-31): EPS=47.35 | Chg30d=+2.72% | Revisions=+20% | GrowthEPS=+15.4% | GrowthRev=-8.2%
EPS next Year (2027-12-31): EPS=54.69 | Chg30d=+4.69% | Revisions=+20% | GrowthEPS=+15.5% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: +20%