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Credit Acceptance Corporation (CACC)

POSITIVE
Financial ServicesCredit ServicesUnited States

Fundamental

77

Price

$603.62

Market Cap

$6.30B

Part 1 · What the company is worth

Overview

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. It advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers. The company is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. It serves independent and franchised automobile dealers. The company was founded in 1972 and is headquartered in Southfield, Michigan.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$2.33B

Trailing 12 months (through 6/30/2026)

Net Income

$502M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.05B

Total Equity

$1.52B

Total Liabilities

$7.11B

Current Ratio

0.03

Interest Coverage

-

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

BankFairly Valued

Fair Value

$516.68

Current Price

$603.62

Margin of Safety

-16.8%

Fair Value Range

$429.55 - $603.81

Estimation Methods

Analyst price target:$636.67
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):$491.03
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):Not applicable to this type of company
Justified P/B:$439.51
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:Not applicable to this type of company
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Sell (0B / 5H / 3S)
Last Earnings Surprise:+0.22%

Valuation Metrics

P/E Ratio

13.30

ROE

27.8%

P/B Ratio

3.94

P/FCF

5.13

Gross Margin

-

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

10.0%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (16)

  • EPS shows upward trend
  • EPS CAGR 13.77%
  • Price CAGR 10.70%
  • P/FCF 5.13
  • Positive Free Cash Flow
  • CapEx intensity
  • Return on Tangible Assets
  • Low reliance on intangibles
  • DCF valuation (Undervalued)
  • ROE 32.4%
  • Revenue Growth 5Y 6.8%
  • PEG Ratio 1.32
  • Earnings Quality (OCF/NI) 2.44
  • Share Dilution -6.6%
  • Net Margin Trend 21.5% vs 18.7%
  • Piotroski F-Score 6/9

Failed (5)

  • P/B Ratio 3.94
  • Debt/Equity ratio
  • Price below Graham Number
  • Analyst Consensus 0% Buy
  • Earnings Surprise avg -4.0%

Unavailable (7)

  • ROIC NaN%
  • Gross Margin NaN%
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

2.44

High quality: earnings backed by cash

Share Dilution

-6.6%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Vinayak R. HegdeCEO, President & Director55
Mr. Douglas W. BuskChief Treasury Officer65
Mr. Joseph Billante IIICFO and Principal Financial & Accounting Officer49
Mr. Jonathan L. LumChief Operating Officer48
Ms. Erin J. KerberChief Legal Officer, Chief Compliance Officer & Secretary45
Mr. Robert BourrierChief Sales Officer-

Audit Risk

6

Board Risk

4

Compensation Risk

10

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for CACC, sourced from Markets Gazette.

  • 3/13/2026POSITIVE
    Credit Acceptance Is 'The Only Non-Prime Lender Worth Owning,' Citron Says

    Citron Research has issued a strong endorsement for Credit Acceptance Corporation (CACC), designating it as the sole non-prime lender meriting investment. The influential research firm has established a fair value target of $714 for the company's stock. This optimistic outlook suggests Citron believes CACC is uniquely positioned within its sector, potentially due to superior risk management, underwriting capabilities, or market share. Investors should note this high conviction call from a prominent short-seller turned long-term advocate, which could signal significant upside potential if CACC's business performance aligns with Citron's projections.

via Markets Gazette