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Upturn AI SWOT - About
CACC 
Credit Acceptance Corporation (CACC)
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Upturn Advisory Summary
09/17/2025: CACC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 $467.5
1 Year Target Price $467.5
| 0 | Strong Buy |
| 0 | Buy |
| 3 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -44.98% | Avg. Invested days 27 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.63B USD | Price to earnings Ratio 14.46 | 1Y Target Price 467.5 |
Price to earnings Ratio 14.46 | 1Y Target Price 467.5 | ||
Volume (30-day avg) 4 | Beta 1.25 | 52 Weeks Range 414.15 - 560.00 | Updated Date 09/16/2025 |
52 Weeks Range 414.15 - 560.00 | Updated Date 09/16/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 34.64 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 36.18% | Operating Margin (TTM) 40.19% |
Management Effectiveness
Return on Assets (TTM) 5% | Return on Equity (TTM) 27.3% |
Valuation
Trailing PE 14.46 | Forward PE 10.34 | Enterprise Value 12031268161 | Price to Sales(TTM) 4.8 |
Enterprise Value 12031268161 | Price to Sales(TTM) 4.8 | ||
Enterprise Value to Revenue 5.37 | Enterprise Value to EBITDA 21.69 | Shares Outstanding 11237700 | Shares Floating 7209297 |
Shares Outstanding 11237700 | Shares Floating 7209297 | ||
Percent Insiders 47.23 | Percent Institutions 67.38 |
Upturn AI SWOT
Credit Acceptance Corporation
Company Overview
History and Background
Credit Acceptance Corporation was founded in 1972. Initially focused on financing cars, they shifted to providing subprime auto loans to dealerships, enabling them to offer financing to customers with poor credit histories. This business model has evolved through various economic cycles and regulatory changes.
Core Business Areas
- Indirect Lending: Provides auto loans to consumers with less-than-perfect credit through a network of franchised and independent automobile dealers. The dealers submit applications, and Credit Acceptance determines if the applicant meets lending criteria.
Leadership and Structure
Brett Roberts is the Chief Executive Officer. The company has a traditional corporate structure with a Board of Directors overseeing management.
Top Products and Market Share
Key Offerings
- Auto Loans: The core product is auto loans offered through dealerships to subprime borrowers. Market share data is difficult to pinpoint exactly but the subprime auto lending market is fragmented. Competitors include other specialized lenders and captive finance arms of auto manufacturers. Revenue comes from interest earned on these loans, and the company has agreements with dealers that participate in a financing program where Credit Acceptance shares in the profits.
Market Dynamics
Industry Overview
The subprime auto lending industry is characterized by high risk and high reward. It is sensitive to economic conditions, interest rates, and regulatory oversight. The industry caters to individuals who are typically excluded from traditional auto financing options.
Positioning
Credit Acceptance is a specialized lender focusing exclusively on the subprime auto loan market. Their competitive advantage lies in their dealer network and proprietary credit scoring models.
Total Addressable Market (TAM)
The TAM for subprime auto lending is estimated to be in the tens of billions of dollars annually. Credit Acceptance is a significant player but has room for further market penetration.
Upturn SWOT Analysis
Strengths
- Strong dealer network
- Proprietary credit scoring models
- Experienced management team
- Established presence in the subprime market
Weaknesses
- High default rates inherent in subprime lending
- Sensitivity to economic downturns
- Reputational risk associated with subprime lending
- Regulatory scrutiny
Opportunities
- Expanding dealer network
- Developing new credit scoring technologies
- Increasing market share in underserved areas
- Product diversification within the auto finance sector
Threats
- Economic recession leading to increased defaults
- Increased competition from other lenders
- Changes in regulations impacting subprime lending
- Rising interest rates
Competitors and Market Share
Key Competitors
- ALLY
- SC
- CACC
Competitive Landscape
Credit Acceptance's advantages include their specialized focus and dealer relationships. Disadvantages include reputational risk and regulatory scrutiny compared to more diversified financial institutions.
Growth Trajectory and Initiatives
Historical Growth: Credit Acceptance has experienced steady growth over the past decade, driven by expansion of its dealer network and increasing demand for subprime auto loans.
Future Projections: Analysts project continued growth for Credit Acceptance, but this depends on economic conditions and regulatory factors.
Recent Initiatives: Highlight recent strategic initiatives undertaken by Credit Acceptance Corporation.
Summary
Credit Acceptance Corporation is a specialized lender in the subprime auto loan market with a strong dealer network. The company's success depends on effective risk management and navigating regulatory changes. While growth has been consistent, economic downturns and increased competition remain key challenges. Maintaining a strong balance sheet and adapting to market conditions will be crucial for future performance.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings, industry reports, analyst estimates
Disclaimers:
Data provided is for informational purposes only and should not be considered financial advice. Market share data is estimated and may vary.
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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