Credit Acceptance Corp
NASDAQ:CACC

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Credit Acceptance Corp
NASDAQ:CACC
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Price: 473.1 USD 2.84% Market Closed
Market Cap: 5.7B USD
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Intrinsic Value

The intrinsic value of one CACC stock under the Base Case scenario is 776.43 USD. Compared to the current market price of 473.1 USD, Credit Acceptance Corp is Undervalued by 39%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

CACC Intrinsic Value
776.43 USD
Undervaluation 39%
Intrinsic Value
Price
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Base Case
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Valuation Backtest
Credit Acceptance Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Credit Acceptance Corp

Current Assets 186.1m
Cash & Short-Term Investments 159.7m
Receivables 26.4m
Non-Current Assets 8.5B
PP&E 15.2m
Other Non-Current Assets 8.5B
Current Liabilities 364.6m
Accounts Payable 364.4m
Other Current Liabilities 200k
Non-Current Liabilities 6.7B
Long-Term Debt 6.2B
Other Non-Current Liabilities 423.2m
Efficiency

Earnings Waterfall
Credit Acceptance Corp

Revenue
2.1B USD
Operating Expenses
-1.4B USD
Operating Income
664.7m USD
Other Expenses
-475.1m USD
Net Income
189.6m USD

Free Cash Flow Analysis
Credit Acceptance Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Credit Acceptance Corporation experienced a modest 0.6% decline in forecasted net cash flows this quarter, largely due to mixed performance in collections and originations amidst a volatile market. Despite this, the company achieved a record high in unit volume, increasing loan and dollar volume by 17.7% and 12.2%, respectively. However, the economic profit forecast for its worst-performing vintage from 2022 remains positive. The CEO expressed confidence in generating substantial long-term economic profit and maintaining market discipline while adapting to current challenges.

What is Earnings Call?
Fundamental Scores

CACC Profitability Score
Profitability Due Diligence

Credit Acceptance Corp's profitability score is 61/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Exceptional 3-Year Average ROE
Positive Operating Income
Positive Net Income
61/100
Profitability
Score

Credit Acceptance Corp's profitability score is 61/100. The higher the profitability score, the more profitable the company is.

CACC Solvency Score
Solvency Due Diligence

Credit Acceptance Corp's solvency score is 18/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Low Altman Z-Score
High D/E
18/100
Solvency
Score

Credit Acceptance Corp's solvency score is 18/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CACC Price Targets Summary
Credit Acceptance Corp

Wall Street analysts forecast CACC stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CACC is 435.03 USD with a low forecast of 377.74 USD and a high forecast of 525 USD.

Lowest
Price Target
377.74 USD
20% Downside
Average
Price Target
435.03 USD
8% Downside
Highest
Price Target
525 USD
11% Upside
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Dividends

Credit Acceptance Corp
does not pay dividends
Shareholder Yield

Current shareholder yield for CACC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Ownership

CACC Insider Trading
Buy and sell transactions by insiders

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Profile

Credit Acceptance Corp Logo
Credit Acceptance Corp

Country

United States of America

Industry

Financial Services

Market Cap

5.7B USD

Dividend Yield

0%

Description

Credit Acceptance Corp. engages in the provision of dealer financing programs that enables automobile dealers to sell vehicles to consumers, regardless of its credit history. The company is headquartered in Southfield, Michigan and currently employs 2,073 full-time employees. The Company’s financing programs are offered through a network of automobile dealers. The firm offers two financing programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, the Company advances money to dealers, which is referred to as dealer loan in exchange for the right to service the underlying consumer Loans. Under the Purchase Program, the Company buys the consumer loans from the dealers, which is referred to as a purchased loan and keeps all amounts collected from the consumer. Its target market consists of approximately 60,000 independent and franchised automobile dealers in the United States. The firm has market area managers located throughout the United States that market its programs to dealers, enroll new dealers, and support active dealers.

Contact

MICHIGAN
Southfield
25505 W 12 Mile Rd
+12483532700.0
www.creditacceptance.com

IPO

1992-06-05

Employees

2 073

Officers

CEO, President & Director
Mr. Kenneth S. Booth
Chief Sales Officer
Mr. Daniel A. Ulatowski
Chief Marketing & Product Officer
Mr. Andrew K. Rostami
Chief Analytics Officer
Mr. Arthur L. Smith
Chief Treasury Officer
Mr. Douglas W. Busk
Chief Financial Officer
Mr. Jay D. Martin
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Chief Operating Officer
Mr. Jonathan L. Lum
Chief Technology Officer
Mr. Ravi Mohan Valiyaveettil
Chief Legal Officer, Chief Compliance Officer & Secretary
Ms. Erin J. Kerber
Chief People Officer
Ms. Wendy A. Rummler
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See Also

Discover More
What is the Intrinsic Value of one CACC stock?

The intrinsic value of one CACC stock under the Base Case scenario is 776.43 USD.

Is CACC stock undervalued or overvalued?

Compared to the current market price of 473.1 USD, Credit Acceptance Corp is Undervalued by 39%.

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