NASDAQ
CACC
Last Price
US $617.78
KEY FIGURES
MKT CAP
$6.5B
EPS
TTM
$42.22
PEG
TTM
0.21x
P/E
TTM
14.63x
P/S
TTM
2.87x
YIELD
0.00%
GROWTH
Revenue Y/Y
6.83%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $617.78
7.11%
Default assumptions
EBITDA Multiple
Fair Value
Market $617.78
-77.29%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Credit Acceptance Corporation cash flow to debt ratio of 16.60% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Credit Acceptance Corporation's free cash flow has decreased -7.31% from $1.14G last year to $1.05G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Credit Acceptance Corporation's debt to equity ratio is 4.23, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Credit Acceptance Corporation's debt has increased relative to shareholder equity from 3.63 last year to 4.23 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Credit Acceptance Corporation has a net debt to EBITDA ratio of 5.54x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Credit Acceptance Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Credit Acceptance Corporation's profit margin has increased (68.85%) in the last year from 11.62% to 19.61%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Credit Acceptance Corporation's short-term liabilities of $2.18G exceed its short-term assets of $577.50M, signaling financial risk
Increasing performance - ROA.
Credit Acceptance Corporation's return on assets of 5.21% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Credit Acceptance Corporation's return on equity of 29.39%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Credit Acceptance Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Credit Acceptance Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Credit Acceptance Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Credit Acceptance Corporation has a free cash flow yield of 16.30%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Credit Acceptance Corporation's yearly earnings has increased 71.00% since last year from $247.90M to $423.90M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Credit Acceptance Corporation's yearly revenue has increased 8.57% since last year from $2.13G to $2.32G, signaling increasing performance
Increasing performance - ROIC.
ROIC 7.71% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Credit Acceptance Corporation's 3-year revenue CAGR of 8.32% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Credit Acceptance Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Credit Acceptance Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Credit Acceptance Corporation is undervalued relative to its fair value price of 661.69 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Credit Acceptance Corporation has an earnings yield of 6.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Credit Acceptance Corporation is overvalued relative to its fair value price of 140.32 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Credit Acceptance Corporation has an EV/EBITDA ratio of 11.65x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Credit Acceptance Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Credit Acceptance Corporation has a price-to-book ratio of 4.38x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Credit Acceptance Corporation has a price-to-sales ratio of 2.87x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
29.39%
Return on equity
ROIC: 7.71%
Valuation History
15.3X
Price to Earnings
EV/EBITDA: 15.5X
Cash flow
Profit margin
12.89%
(FY vs FY)
Cash flow Y/Y
1.52%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.