Credit Acceptance Corp
NASDAQ:CACC

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Credit Acceptance Corp
NASDAQ:CACC
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Price: 464.54 USD -1.75% Market Closed
Market Cap: 5.6B USD
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Net Margin
Credit Acceptance Corp

9.1%
Current
28%
Average
13.9%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
9.1%
=
Net Income
189.6m
/
Revenue
2.1B

Net Margin Across Competitors

Country US
Market Cap 5.6B USD
Net Margin
9%
Country US
Market Cap 211.9B USD
Net Margin
14%
Country US
Market Cap 68.9B USD
Net Margin
11%
Country IN
Market Cap 4.3T INR
Net Margin
25%
Country US
Market Cap 43.9B USD
Net Margin
18%
Country US
Market Cap 25.7B USD
Net Margin
16%
Country KZ
Market Cap 18.4B USD
Net Margin
55%
Country US
Market Cap 17.4B USD
Net Margin
7%
Country IN
Market Cap 1.1T INR
Net Margin
21%
Country US
Market Cap 11.3B EUR
Net Margin
40%
Country IN
Market Cap 1T INR
Net Margin
17%
No Stocks Found

Credit Acceptance Corp
Glance View

Market Cap
5.6B USD
Industry
Financial Services

In the bustling world of auto finance, Credit Acceptance Corp emerges as a distinctive player, crafting its niche in a market often wrought with complexity. Founded in 1972, the company specializes in providing financing programs to automobile dealerships that allow them to offer vehicle loans to consumers, regardless of their credit history. This model thrives on partnerships with registered car dealers nationwide, enabling Credit Acceptance to tap into a clientele segment often overlooked by traditional lenders. The company prides itself on offering a second chance for many, thus bridging the gap between stringent borrowing criteria and consumer demand. In essence, Credit Acceptance positions itself as a lifeline for dealerships and customers, using its proprietary Credit Approval Processing System (CAPS) to match consumer applications with its credit guidelines, hence securing a broader base of potential borrowers. The revenue engine fueling Credit Acceptance Corp is predominantly driven by the finance charges from these loans, capitalizing on higher interest rates associated with high-risk lending. The company derives its income through two primary channels: the Program and Portfolio programs. The Program segment allows dealers to share in the potential upside when collections exceed certain benchmarks, essentially giving them a stake in the loan's performance. Conversely, the Portfolio program shifts more responsibility to the dealer, enabling them to receive payments up-front in exchange for taking on more of the loan risk. This dual approach not only mitigates financial risk for Credit Acceptance but also aligns the company's interests with those of its dealer partners, ensuring a symbiotic relationship. Through these mechanisms, Credit Acceptance not only sustains its financial viability but also sustains its commitment to expanding car ownership across diverse economic demographics.

CACC Intrinsic Value
776.25 USD
Undervaluation 40%
Intrinsic Value
Price

See Also

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What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
9.1%
=
Net Income
189.6m
/
Revenue
2.1B
What is the Net Margin of Credit Acceptance Corp?

Based on Credit Acceptance Corp's most recent financial statements, the company has Net Margin of 9.1%.