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Credit Acceptance Corporation (CACC) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Credit Acceptance Corporation

CACCMarket cap $5.53BPrice $532.5

Country🇺🇸United States

SectorFinancials

IndustryConsumer Finance

Provides auto loans to people traditional lenders reject, then packages that risk into a business model dealerships depend on. Nearly half of Americans have subprime credit, and Credit Acceptance built an entire empire betting on their car payments.

In Bastion Portfolios?

52W Return+8%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+1%3

Revenue Forecast

Rev CAGR (1y)+1%3

Rev CAGR (3y)+4%3

Rev CAGR (5y)+3%3

Earnings Forecast

EPS Growth Y+1+36%9

EPS Growth Y+2+14%7

EPS Growth Y+3-0%3

Quality

Margins

EBIT Margin0%9

Net Income Margin39%10

Free Cash Flow Margin94%10

Debt

Net Debt/EBITDAna–

Efficiency

ROE32%9

ROA6%7

Earnings Stability44

GEAR+AVERAGE47

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)108

P/E Ratio (Forward 3y)98

P/BV3.54

EV Multiples

EV/EBITDA Fwd08

EV/EBIT Fwd08

Yield

Free Cash Flow Yield0.0%9

Dividend Yieldna–

Momentum

Short term

1 month return-10%2

3 month return-15%2

YTD return+20%8

Mid term

Price vs 52wHigh80%5

1 year return+4%5

Long term

3 year return+23%4

5 year return-13%3

Risk Shield

Price Risk

Beta1.42

Volatility38%5

Free Cash Flow

Free Cash Flow Margin94%10

Free Cash Flow Yield0.0%9

Quality

ROCE9%7

Earnings Stability44

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

CACCCredit Acceptance

Revenue FY25$2.3B

GROWTH RATING↗

WEAK22 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+36%9

EPS growth, FY27E+14%7

EPS growth, FY28E-0%3

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 14%/yr vs revenue 4%/yr), so margins should widen.

WATCH

Revenue grew 1%/yr over the last 3 years and is set to keep growing around 4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 78% of companies worldwide.

Revenue grew 1%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 4%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: the 3-year revenue record is weak.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK17 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%2

3-month return-15%2

YTD return+20%8

MID & LONG-TERM▾SCORE

% of 52-week high80%5

1-year return+4%5

3-year return+23%4

5-year return-13%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming so far this year (+20%).

WATCH

It's up 4% over the past year, but 20% below its 52-week high. That is right in line with the market.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+23% over three years and -13% over five), behind 60% of the market.

The stock is underperforming over the past month (-10%) and over three months (-15%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Credit Acceptance Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

CACCCredit Acceptance

Revenue FY25$2.3B

GROWTH RATING↗

WEAK22 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+36%9

EPS growth, FY27E+14%7

EPS growth, FY28E-0%3

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 14%/yr vs revenue 4%/yr), so margins should widen.

WATCH

Revenue grew 1%/yr over the last 3 years and is set to keep growing around 4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 78% of companies worldwide.

Revenue grew 1%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 4%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: the 3-year revenue record is weak.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK17 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%2

3-month return-15%2

YTD return+20%8

MID & LONG-TERM▾SCORE

% of 52-week high80%5

1-year return+4%5

3-year return+23%4

5-year return-13%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming so far this year (+20%).

WATCH

It's up 4% over the past year, but 20% below its 52-week high. That is right in line with the market.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+23% over three years and -13% over five), behind 60% of the market.

The stock is underperforming over the past month (-10%) and over three months (-15%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Credit Acceptance Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community