Credit Acceptance Corp. (CACC)
NASDAQ:CACC
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Credit Acceptance
(NASDAQ:CACC)
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Rating:58Neutral
Price Target:
$488.00
▲(4.91% Upside)
Action:ReiteratedDate:04/03/26
The score is held back primarily by elevated and rising leverage (balance-sheet risk in a credit-sensitive business) and clearly bearish technical signals (below all key moving averages with weak MACD/RSI). These are partially offset by strong underlying profitability/cash generation and a low P/E valuation, while the latest earnings call and recent corporate updates were constructive but still highlighted market share and volume pressures.
Positive Factors
Consistent cash generation
Sustained operating cash flow near $1.0–$1.24B and free cash flow roughly tracking net income indicate durable cash generation. This supports ongoing origination funding, servicing investments, and capital allocation flexibility even through credit cycles, underpinning long-term earnings quality.
Negative Factors
Elevated leverage
A highly leveraged capital structure (debt roughly 4.17x equity) amplifies downside risk in a credit-sensitive business. If credit performance or recoveries worsen, debt servicing and refinancing pressures could constrain capital allocation and increase insolvency risk, reducing resilience across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Sustained operating cash flow near $1.0–$1.24B and free cash flow roughly tracking net income indicate durable cash generation. This supports ongoing origination funding, servicing investments, and capital allocation flexibility even through credit cycles, underpinning long-term earnings quality.
Read all positive factors
Credit Acceptance (CACC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.00B
Dividend YieldN/A
Average Volume (3M)132.55K
Price to Earnings (P/E)11.6
Beta (1Y)1.27
Revenue Growth10.30%
EPS Growth154.64%
CountryUS
Employees2,431
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)11.35
Shares Outstanding10,747,682
10 Day Avg. Volume124,218
30 Day Avg. Volume132,546
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)3.22
Price to Sales (P/S)2.12
P/FCF Ratio4.67
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue4.79
Enterprise Value/Gross Profit6.76
Enterprise Value/Ebitda16.05
Forecast
1Y Price Target
$450.00Price Target Upside-3.26% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)45.46
Revenue Forecast (FY)$2.13B
Credit Acceptance Business Overview & Revenue Model
Company Description
Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the unde...
How the Company Makes Money
CACC makes money by acquiring and managing cash flows from dealer-originated auto loans (retail installment contracts) and related financing arrangements, and by earning returns in excess of its funding and operating costs.
1) Interest and financ...
Credit Acceptance Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management highlighted operational and financial resilience (adjusted EPS growth, nearly 72,000 contracts financed, $1.3B collected, portfolio up 1% adjusted, product/technology progress and narrowing of sequential declines), but also acknowledged meaningful challenges (market share deterioration from 5.4% to 4.5%, declines in active dealers and per-dealer volume, YoY loan volume declines, vintage underperformance, higher initial provisions and below-normal prepayments). Management emphasized conservative underwriting, product fixes targeted at franchise and large independent dealers, and disciplined capital allocation.Positive Updates
Adjusted EPS Growth Despite Headwinds
Management reported growth in adjusted earnings per share for Q4 FY2025 even as loan performance and loan volumes declined (no explicit % provided).
Negative Updates
Market Share Decline in Core Subprime Used-Vehicle Segment
Market share was 4.5% for the first two months of Q4, down from 5.4% in the same period of 2024 (a 0.9 percentage-point drop, ~16.7% relative decline), with most pressure in franchise and large independent dealers.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EPS Growth Despite Headwinds
Management reported growth in adjusted earnings per share for Q4 FY2025 even as loan performance and loan volumes declined (no explicit % provided).
Read all positive updates
Company Guidance
Management's guidance emphasized continued conservative, data-driven growth and capital discipline — including plans to expand adoption of the new contract origination experience in Q1 2026, ongoing investments in AI and digital servicing, and no change to the buyback/capital return strategy — while keeping leverage and funding capacity under review (leverage roughly 2.8x). For context, Q4 results they cited as the operating base included ~72,000 contracts financed, $1.3 billion collected, $48 million paid in dealer holdback, 1,200+ dealers enrolled and ~9,800 active dealers (active dealers down 2.8% YoY; average unit volume per active dealer down 6.4% YoY), loan unit volume down 9.1% YoY (improved from -16.5%), loan dollar volume down 11.3% YoY (improved from -19.4%), core used-subprime market share ~4.5% (vs 5.4% a year earlier), adjusted loan portfolio up ~1% YoY, vintage variances of -0.4% (2023) and -0.2% (2024), a sequential narrowing in forecasted future net cash flow decline from $58.6M (0.5%) in Q3 to $34.2M (0.3%) in Q4, a $73M provision for new originations (~$1,000 per unit) with purchase-program initial provision roughly 3x portfolio, and prepayments remaining below historical norms.Credit Acceptance Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
42
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.32B | 2.13B | 1.88B | 1.82B | 1.85B |
| Gross Profit | 2.29B | 1.33B | 1.26B | 1.35B | 1.43B |
| EBITDA | 1.06B | 352.90M | 373.90M | 727.90M | 1.28B |
| Net Income | 423.90M | 247.90M | 286.10M | 535.80M | 958.30M |
Balance Sheet | |||||
| Total Assets | 9.60B | 9.74B | 8.39B | 7.63B | 7.05B |
| Cash, Cash Equivalents and Short-Term Investments | 510.30M | 854.50M | 477.80M | 421.70M | 23.30M |
| Total Debt | 6.35B | 6.35B | 5.07B | 4.59B | 4.62B |
| Total Liabilities | 8.07B | 7.99B | 6.64B | 6.01B | 5.23B |
| Stockholders Equity | 1.52B | 1.75B | 1.75B | 1.62B | 1.82B |
Cash Flow | |||||
| Free Cash Flow | 1.05B | 1.14B | 1.20B | 1.24B | 1.06B |
| Operating Cash Flow | 1.05B | 1.14B | 1.20B | 1.24B | 1.07B |
| Investing Cash Flow | -674.30M | -1.72B | -1.42B | -460.60M | 437.30M |
| Financing Cash Flow | -724.60M | 957.30M | 266.20M | -794.60M | -1.47B |
Credit Acceptance Technical Analysis
Positive
465.15
Price Trends
472.98
Negative
463.90
Positive
477.94
Negative
Market Momentum
-6.93
Negative
56.51
Neutral
89.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CACC, the sentiment is Positive. The current price of 465.15 is above the 20-day moving average (MA) of 443.78, below the 50-day MA of 472.98, and below the 200-day MA of 477.94, indicating a neutral trend. The MACD of -6.93 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 89.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CACC.
Credit Acceptance Risk Analysis
Credit Acceptance disclosed 31 risk factors in its most recent earnings report. Credit Acceptance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Credit Acceptance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $6.56B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $4.25B | 7.53 | 31.14% | 1.88% | 0.59% | -1.11% | |
61 Neutral | $1.70B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
58 Neutral | $5.00B | 11.59 | 26.63% | ― | 10.30% | 154.64% | |
54 Neutral | $1.69B | 11.83 | 12.81% | 3.40% | 27.36% | 12.55% | |
50 Neutral | $755.01M | -54.17 | -3.16% | 4.95% | -25.22% | -174.34% |
* Financial Sector Average
CACC
Credit Acceptance
465.15
-28.04
-5.69%
AGM
Federal Agricultural
158.16
-3.24
-2.01%
SLM
SLM
21.47
-3.50
-14.03%
NAVI
Navient
7.94
-2.48
-23.78%
LC
LendingClub
14.77
5.57
60.54%
OMF
OneMain Holdings
55.96
15.96
39.90%
Credit Acceptance Corporate Events
Business Operations and Strategy
Credit Acceptance Unveils Tech-Driven Strategy for Long-Term Growth
Positive
Apr 3, 2026
In a letter accompanying new investor materials, Credit Acceptance’s CEO, who took the role in November 2025 after four years on the board, outlines a strategy centered on maximizing long‑term intrinsic value per share and Economic Pro...
Executive/Board Changes
Credit Acceptance Announces Retirement of Two Senior Officers
Neutral
Jan 26, 2026
On January 20, 2026, Credit Acceptance Corporation announced that Chief Analytics Officer Arthur L. Smith and Chief Sales Officer Daniel A. Ulatowski had notified the company of their decisions to retire as officers and employees, effective Februa...
Business Operations and StrategyPrivate Placements and Financing
Credit Acceptance Extends and Reprices Term ABS Financing
Positive
Jan 20, 2026
On January 15, 2026, Credit Acceptance Corporation announced it had amended its existing $100 million asset-backed non-recourse secured financing, known as Term ABS 2021-1, originally entered into on January 29, 2021. The amendment extends the dat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.