Credit Acceptance Corp. (CACC)
NASDAQ:CACC
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Credit Acceptance
(NASDAQ:CACC)
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Rating:68Neutral
Price Target:
$581.00
▲(10.13% Upside)
Action:Reiterated
Date:05/12/26
The score is driven by strong technical momentum and an attractive low earnings multiple, balanced against meaningful balance-sheet leverage and some recent fundamental pressure (margin/FCF softness). Earnings call signals improving stability and operational progress, but competitive share loss and forecast/provision uncertainty keep risk elevated.
Positive Factors
Strong cash generation and FCF conversion
Consistent, high-quality cash conversion (FCF ≈ net income) provides durable internal funding for loan purchases, servicing, ABS issuance and investments. This reduces reliance on external capital, supports debt servicing, and gives flexibility to sustain operations and strategic initiatives through cycles.
Negative Factors
High financial leverage
Material leverage limits balance-sheet flexibility and raises sensitivity to funding cost shifts and ABS market access. In adverse credit or funding environments, high debt amplifies downside, constrains opportunistic investments, and requires consistent strong cash generation to cover debt and maintain ratings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
Consistent, high-quality cash conversion (FCF ≈ net income) provides durable internal funding for loan purchases, servicing, ABS issuance and investments. This reduces reliance on external capital, supports debt servicing, and gives flexibility to sustain operations and strategic initiatives through cycles.
Read all positive factors
Credit Acceptance (CACC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.70B
Dividend YieldN/A
Average Volume (3M)132.55K
Price to Earnings (P/E)8.4
Beta (1Y)1.41
Revenue Growth4.52%
EPS Growth72.48%
CountryUS
Employees2,431
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)40.99
Shares Outstanding10,460,071
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 Cap2.12
Enterprise Value/Revenue5.23
Enterprise Value/Gross Profit6.51
Enterprise Value/Ebitda14.49
Forecast
1Y Price Target
$520.00Price Target Upside-1.43% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)48.17
Revenue Forecast (FY)$2.14B
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:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: the company delivered solid GAAP and adjusted earnings, demonstrated stabilization in loan cash flows and origination declines, executed a capital raise at attractive spreads, and showed tangible early benefits from AI and a new operating cadence. At the same time, management acknowledged persistent challenges — market share erosion in the core segment, per-dealer volume declines, sizable provisions driven by timing and prepayment uncertainty, and a workforce reduction to rebase costs. Overall the positives (earnings, improved cash-flow stability, capital access, technology and operating improvements) modestly outweigh the negatives, but the company remains disciplined and cautious given competitive and macro risks.Positive Updates
Strong GAAP and Adjusted Earnings
GAAP net income of $135.8M, or $12.40 per diluted share, and adjusted net income of $117.3M, or $10.71 per diluted share, representing year-over-year growth in earnings for the quarter.
Negative Updates
Decline in Core Market Share
Market share in core segment (used vehicles financed to subprime consumers) fell to 4.5% for the first two months of the quarter versus 5.2% in the comparable period of 2025, indicating competitive pressure and share loss.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong GAAP and Adjusted Earnings
GAAP net income of $135.8M, or $12.40 per diluted share, and adjusted net income of $117.3M, or $10.71 per diluted share, representing year-over-year growth in earnings for the quarter.
Read all positive updates
Company Guidance
Management's guidance was cautious but constructive: they said pricing adjustments and segmentation are beginning to bring greater predictability to the portfolio and that they remain disciplined while being "cautiously optimistic," pointing to the smallest quarterly decline in forecasted net cash flows in three years (down $9.1M, or 0.1%), moderated origination declines (unit volume -4.3% YoY; loan dollar volume -4% vs -11.3% in Q4), a steady adjusted loan portfolio of $8.9B, nearly 96,000 contracts financed, about $1.5B collected, $47M paid in dealer holdbacks, >1,500 new dealers added to a record 10,977 active dealers, core market share of 4.5% (down from 5.2% a year ago), average unit volume per active dealer -6.5% YoY, purchased loans at ~28% of originations (within a 20–40% historical range), a $450M ABS priced at a 5.2% all‑in cost (vs 5.1% in Q4) with the lowest credit spread since late 2021, a $54M provision for forecast changes this quarter, an AI-enabled call‑center agent handling ~5x more inbound calls QoQ, and a roughly 6% workforce reduction as part of broader cost‑discipline and operating‑rigor initiatives.Credit Acceptance Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
44
Neutral
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.31B | 2.32B | 2.13B | 1.88B | 1.82B | 1.85B |
| Gross Profit | 1.86B | 2.29B | 1.33B | 1.26B | 1.35B | 1.43B |
| EBITDA | 833.50M | 1.06B | 352.90M | 373.90M | 727.90M | 1.28B |
| Net Income | 453.40M | 423.90M | 247.90M | 286.10M | 535.80M | 958.30M |
Balance Sheet | ||||||
| Total Assets | 8.69B | 9.60B | 9.74B | 8.39B | 7.63B | 7.05B |
| Cash, Cash Equivalents and Short-Term Investments | 25.70M | 510.30M | 854.50M | 477.80M | 421.70M | 23.30M |
| Total Debt | 6.41B | 6.35B | 6.35B | 5.07B | 4.59B | 4.62B |
| Total Liabilities | 7.18B | 8.07B | 7.99B | 6.64B | 6.01B | 5.23B |
| Stockholders Equity | 1.51B | 1.52B | 1.75B | 1.75B | 1.62B | 1.82B |
Cash Flow | ||||||
| Free Cash Flow | 1.05B | 1.05B | 1.14B | 1.20B | 1.24B | 1.06B |
| Operating Cash Flow | 1.06B | 1.05B | 1.14B | 1.20B | 1.24B | 1.07B |
| Investing Cash Flow | -574.80M | -674.30M | -1.72B | -1.42B | -460.60M | 437.30M |
| Financing Cash Flow | -1.05B | -724.60M | 957.30M | 266.20M | -794.60M | -1.47B |
Credit Acceptance Technical Analysis
Positive
527.56
Price Trends
490.94
Positive
485.03
Positive
480.17
Positive
Market Momentum
15.23
Negative
58.92
Neutral
74.79
Neutral
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 527.56 is below the 20-day moving average (MA) of 529.65, above the 50-day MA of 490.94, and above the 200-day MA of 480.17, indicating a bullish trend. The MACD of 15.23 indicates Negative momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 74.79 is Neutral, 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 | $5.70B | 8.37 | 29.39% | ― | 4.52% | 72.48% | |
68 Neutral | $1.88B | 8.10 | 13.01% | 3.40% | 21.73% | 7.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $1.80B | 8.01 | 11.92% | ― | 17.38% | 237.98% | |
64 Neutral | $4.18B | 3.40 | 31.16% | 1.88% | 1.73% | 28.93% | |
64 Neutral | $6.18B | 6.91 | 23.62% | 6.07% | 7.80% | 42.28% | |
53 Neutral | $793.27M | 11.43 | -2.45% | 4.95% | -20.89% | -217.55% |
* Financial Sector Average
CACC
Credit Acceptance
544.80
67.99
14.26%
AGM
Federal Agricultural
177.61
1.67
0.95%
SLM
SLM
22.15
-10.79
-32.76%
NAVI
Navient
8.44
-4.10
-32.67%
LC
LendingClub
15.63
5.77
58.52%
OMF
OneMain Holdings
53.48
6.86
14.70%
Credit Acceptance Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Credit Acceptance Completes $450 Million Auto Loan Securitization
Positive
May 11, 2026
On May 5, 2026, Credit Acceptance Corporation completed a $450 million asset-backed non-recourse secured financing backed by approximately $562.6 million of consumer auto loans conveyed to a special purpose entity and then to a trust issuing three...
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...
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.