CACC$445.655
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AI CACC Summary
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Powered by LiveAIOverall Analysis
BuyCredit Acceptance Corporation presents a fundamentally sound investment with a stable operational history and a solid balance sheet. While its current valuation metrics indicate it might be fairly priced or slightly undervalued compared to historical performance, technical indicators suggest a cautious approach due to recent downward price pressure. The company operates in a niche but stable sector, making it a potentially resilient choice for long-term investors.
Thematic
Credit Acceptance operates in the subprime auto lending sector, which is generally counter-cyclical and can be sensitive to economic downturns. While it benefits from a consistent demand for automotive financing, particularly for those with less-than-perfect credit, it does not directly ride major disruptive technological or societal trends in the same way as a tech or green energy company might. Its thematic appeal is more about financial inclusion and the necessity of personal transportation.
Fundamental
Credit Acceptance demonstrates strong financial health with significant growth in assets and equity over recent years. Profitability has shown fluctuations, with a notable dip in net margin in 2024's Q2, but overall revenue has trended upwards. The company maintains a manageable debt level relative to its strong cash flow generation, indicating financial resilience.
Technical
The stock is currently trading below its key moving averages, and most short-term technical indicators suggest selling pressure. While there are some oscillators indicating potential oversold conditions, the overall trend appears bearish in the short to medium term. A sustained move above key resistance levels would be needed to signal a bullish reversal.
| Factor | Score |
|---|---|
| Financial Inclusion | 70 |
| Automotive Market Dynamics | 55 |
| Economic Sensitivity | 50 |
| Regulatory Environment | 65 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 75 |
| Growth | 70 |
| Balance Sheet Health | 65 |
| Cash Flow | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 45 |
| Volume Confirmation | 55 |
| Support & Resistance | 50 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Positive Earnings Surprises
Credit Acceptance Corporation has demonstrated a pattern of exceeding earnings per share (EPS) estimates in several recent quarters, including a significant beat of 28.32% in Q1 2025 and 11.2% in Q2 2024, indicating strong operational execution and potential for continued profitability.
Attractive P/E Ratio
With a P/E ratio (TTM) of 17.7, the company appears attractively valued compared to its historical performance and potentially other companies in the financial services sector, especially considering its revenue and net income figures.
Bearish Points (8)
Recent EPS Miss
The company missed the EPS estimate in the most recent reported quarter (Q2 2025), reporting 9.35 against an estimate of 9.67, signaling a potential short-term challenge to meeting market expectations.
High Quarterly P/E Ratios
Quarterly P/E ratios have been notably high, with Q1 2025 at 56.4 and Q4 2024 at 35.9, suggesting that current market expectations might be stretched and potentially not sustainable if future earnings do not accelerate significantly.
Calendar
August 2025
1
Next Earnings Date
H: $9.94
A: $9.83
L: $9.74
H: 599.90M
A: 581.12M
L: 570.10M
Profile
Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company 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. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company serves independent and franchised automobile dealers. The company was incorporated in 1972 and is headquartered in Southfield, Michigan.
Seasonals
Price Target
495.25 USD
The 39 analysts offering 1 year price forecasts for CACC have a max estimate of 525.00 and a min estimate of 470.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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