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CACC logo CACC
Upturn stock ratingUpturn stock rating
CACC logo

Credit Acceptance Corporation (CACC)

Upturn stock ratingUpturn stock rating
$502.25
Last Close (24-hour delay)
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

06/20/2025: CACC (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

ratingratingratingratingrating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

4 Analysts rated it

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Year Target Price $485.25

Year Target Price $485.25

Analyst’s Price TargetsFor last 52 week
$485.25Target price
Low$409.22
Current$502.25
high$614.96

Analysis of Past Performance

Type Stock
Historic Profit -35.55%
Avg. Invested days 30
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/20/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 5.83B USD
Price to earnings Ratio 21.42
1Y Target Price 485.25
Price to earnings Ratio 21.42
1Y Target Price 485.25
Volume (30-day avg) -
Beta 1.15
52 Weeks Range 409.22 - 614.96
Updated Date 06/29/2025
52 Weeks Range 409.22 - 614.96
Updated Date 06/29/2025
Dividends yield (FY) -
Basic EPS (TTM) 23.47

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 29.19%
Operating Margin (TTM) 48.52%

Management Effectiveness

Return on Assets (TTM) 3.34%
Return on Equity (TTM) 17.24%

Valuation

Trailing PE 21.42
Forward PE 10.34
Enterprise Value 12009002743
Price to Sales(TTM) 5.87
Enterprise Value 12009002743
Price to Sales(TTM) 5.87
Enterprise Value to Revenue 5.47
Enterprise Value to EBITDA 29.53
Shares Outstanding 11603500
Shares Floating 5901759
Shares Outstanding 11603500
Shares Floating 5901759
Percent Insiders 40.13
Percent Institutions 73.2

Analyst Ratings

Rating 2.5
Target Price 485.25
Buy -
Strong Buy -
Buy -
Strong Buy -
Hold 3
Sell -
Strong Sell 1
Strong Sell 1

ai summary icon Upturn AI SWOT

Credit Acceptance Corporation

stock logo

Company Overview

overview logo History and Background

Credit Acceptance Corporation (CACC) was founded in 1972. Initially focused on direct consumer lending, it evolved to specialize in enabling auto dealerships to sell vehicles to consumers with credit challenges. The company expanded geographically and refined its finance program over decades.

business area logo Core Business Areas

  • Finance Program: Provides auto loans to consumers with credit challenges through a network of dealerships. Credit Acceptance purchases these loans from the dealerships, assuming the credit risk.

leadership logo Leadership and Structure

The leadership team consists of the CEO, CFO, and other senior executives. The organizational structure is hierarchical, with functional departments such as finance, operations, and sales.

Top Products and Market Share

overview logo Key Offerings

  • Finance Program: Enables auto dealerships to sell vehicles to consumers with credit challenges. Revenue is derived from the difference between loan payments collected from consumers and payments made to dealerships for the purchased loans. Market share information is not readily available. Competitors include subprime auto lenders like Exeter Finance and American Credit Acceptance.

Market Dynamics

industry overview logo Industry Overview

The subprime auto lending industry is characterized by high interest rates and default rates. Demand is driven by consumers with limited access to traditional credit. Regulatory scrutiny is increasing.

Positioning

Credit Acceptance Corporation is a major player in the subprime auto lending market, known for its long-standing relationships with dealerships and its data-driven approach to underwriting.

Total Addressable Market (TAM)

The TAM for subprime auto lending is estimated to be tens of billions of dollars annually. Credit Acceptance Corporation captures a significant portion, though exact figures fluctuate based on economic conditions.

Upturn SWOT Analysis

Strengths

  • Long-standing relationships with dealerships
  • Data-driven underwriting
  • Experienced management team
  • Established finance program

Weaknesses

  • High exposure to credit risk
  • Dependence on subprime borrowers
  • Potential for regulatory scrutiny
  • Sensitivity to economic downturns

Opportunities

  • Expansion into new geographic markets
  • Development of new product offerings
  • Increased adoption of technology
  • Strategic partnerships

Threats

  • Increased competition
  • Economic recession
  • Changes in regulatory environment
  • Rising interest rates

Competitors and Market Share

competitor logo Key Competitors

  • AFCG
  • GO
  • SC

Competitive Landscape

Credit Acceptance Corporation's advantages include its long-standing relationships and data-driven approach. Disadvantages may include its reliance on subprime borrowers and exposure to regulatory risk.

Growth Trajectory and Initiatives

Historical Growth: Credit Acceptance Corporation has historically grown by expanding its dealership network and increasing loan originations. Growth rates have fluctuated with economic cycles.

Future Projections: Future growth projections are subject to economic conditions and regulatory changes. Analyst estimates should be consulted for specific forecasts.

Recent Initiatives: Recent initiatives might include expanding technology platforms or adjusting underwriting guidelines to address changing market conditions.

Summary

Credit Acceptance Corporation is a significant player in the subprime auto lending market, leveraging long-standing dealership relationships and data-driven underwriting. However, its exposure to credit risk and potential regulatory scrutiny pose challenges. The company's future performance is highly dependent on economic conditions and its ability to adapt to market changes. Continued monitoring of competition and financial health is crucial.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company filings
  • Industry reports
  • Financial news sources

Disclaimers:

This analysis is based on publicly available information and is not financial advice. Market conditions and company performance are subject to change.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Credit Acceptance Corporation

Exchange NASDAQ
Headquaters Southfield, MI, United States
IPO Launch date 1992-06-05
CEO, President & Director Mr. Kenneth S. Booth
Sector Financial Services
Industry Credit Services
Full time employees 2431
Full time employees 2431

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.