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CACC 
Credit Acceptance Corporation (CACC)
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Upturn Advisory Summary
11/03/2025: 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
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $458
1 Year Target Price $458
| 0 | Strong Buy |
| 0 | Buy |
| 3 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -49.12% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/03/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.93B USD | Price to earnings Ratio 11.87 | 1Y Target Price 458 |
Price to earnings Ratio 11.87 | 1Y Target Price 458 | ||
Volume (30-day avg) 4 | Beta 1.2 | 52 Weeks Range 420.15 - 560.00 | Updated Date 11/2/2025 |
52 Weeks Range 420.15 - 560.00 | Updated Date 11/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 37.69 |
Earnings Date
Report Date 2025-10-29 | When After Market | Estimate 9.52 | Actual 10.28 |
Profitability
Profit Margin 36.81% | Operating Margin (TTM) 47.41% |
Management Effectiveness
Return on Assets (TTM) 5.24% | Return on Equity (TTM) 28.14% |
Valuation
Trailing PE 11.87 | Forward PE 10.34 | Enterprise Value 11797412435 | Price to Sales(TTM) 4 |
Enterprise Value 11797412435 | Price to Sales(TTM) 4 | ||
Enterprise Value to Revenue 5.27 | Enterprise Value to EBITDA 21.27 | Shares Outstanding 11031544 | Shares Floating 7075743 |
Shares Outstanding 11031544 | Shares Floating 7075743 | ||
Percent Insiders 47.68 | Percent Institutions 69.58 |
Upturn AI SWOT
Credit Acceptance Corporation
Company Overview
History and Background
Credit Acceptance Corporation was founded in 1972. Initially focused on originating loans, it transitioned to its current business model of purchasing auto loans from dealerships. The company experienced growth through the 1990s and 2000s, becoming a significant player in the subprime auto lending market.
Core Business Areas
- Automobile Financing: Credit Acceptance partners with automobile dealerships to enable them to sell vehicles to consumers regardless of their credit history. They purchase auto loans from the dealers and collect payments from the consumers.
Leadership and Structure
The leadership team includes Brett Roberts (CEO). The organizational structure is hierarchical, with various departments overseeing finance, operations, and risk management.
Top Products and Market Share
Key Offerings
- Auto Loan Purchasing and Servicing: Credit Acceptance's primary business involves purchasing auto loans from dealerships and servicing these loans. They profit from the difference between the purchase price and the total payments collected. Market share data is variable and dependent on subprime auto lending cycles. Competitors include subprime auto lenders and finance companies.
Market Dynamics
Industry Overview
The subprime auto lending industry is characterized by higher interest rates and default risks. It caters to borrowers with poor credit histories. Economic conditions, unemployment rates, and regulatory changes heavily influence the industry.
Positioning
Credit Acceptance is a major player in the subprime auto lending market. Its competitive advantage lies in its long-standing relationships with dealerships and its expertise in managing high-risk loan portfolios.
Total Addressable Market (TAM)
The TAM is large, encompassing all consumers with impaired credit seeking auto financing. Credit Acceptance targets a significant portion of this market, but TAM estimates are dynamic and vary based on economic conditions and credit availability.
Upturn SWOT Analysis
Strengths
- Established dealer network
- Expertise in subprime lending
- Sophisticated loan servicing infrastructure
- Long operating history
Weaknesses
- High default rates on loans
- Sensitivity to economic downturns
- Regulatory scrutiny
- Reputational risk associated with subprime lending
Opportunities
- Expanding dealer partnerships
- Technological advancements in loan servicing
- Potential for new product offerings
- Growing demand for auto financing among subprime borrowers
Threats
- Increased competition
- Changes in government regulations
- Economic recession
- Rising interest rates
Competitors and Market Share
Key Competitors
- ALLY
- SC
- CACC
Competitive Landscape
Credit Acceptance benefits from its extensive dealer network and experience. However, increased regulatory scrutiny and competition pose challenges. Ally Financial and Santander Consumer USA have greater diversification.
Growth Trajectory and Initiatives
Historical Growth: Credit Acceptance has experienced fluctuating growth, influenced by economic cycles and regulatory changes.
Future Projections: Future projections vary based on analyst estimates. Consult financial news sources for consensus estimates.
Recent Initiatives: Recent initiatives focus on dealer network expansion, loan portfolio optimization, and technological improvements in loan servicing.
Summary
Credit Acceptance is a strong player in the subprime auto lending market, leveraging its dealer network and expertise. Its high default rates and dependence on the economy pose risks. Continued regulatory scrutiny and competition are significant challenges. Its focus on loan servicing and technology advancements are working well.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Financial news articles
- Industry reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly. Conduct thorough due diligence before making investment decisions.
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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