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Upturn AI SWOT - About
CACC 
Credit Acceptance Corporation (CACC)
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Upturn Advisory Summary
06/20/2025: CACC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
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
| 0 | Strong Buy |
| 0 | Buy |
| 3 | Hold |
| 0 | Under performing |
| 1 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -35.55% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| 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 |
Upturn AI SWOT
Credit Acceptance Corporation
Company Overview
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.
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 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
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
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
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.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.creditacceptance.com |
Full time employees 2431 | Website https://www.creditacceptance.com | ||
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.
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