Credit Acceptance Corp Stock Research

Market Summary

USD445.47+11.21

Delayed

2.58%

CACC Alerts

1 major insider sales recently.
Big fall in earnings (Y/Y)

CACC Stock Price

CACC RSI Chart

CACC Valuation

Market Cap

5.7B

Price/Earnings (Trailing)

13.58

Price/Sales (Trailing)

3.12

EV/EBITDA

Price/Free Cashflow

4.94

CACC Price/Sales (Trailing)

CACC Profitability

EBT Margin

38.84%

Return on Equity

32.99%

Return on Assets

7.76%

Free Cashflow Yield

20.23%

CACC Fundamentals

CACC Revenue

Revenue (TTM)

1.8B

Revenue Y/Y

-0.42%

Revenue Q/Q

-1.13%

CACC Earnings

Earnings (TTM)

421.0M

Earnings Y/Y

-53.57%

Earnings Q/Q

-21.84%

Price Action

52 Week Range

358.00617.44

(Low)(High)

Last 7 days

2.4%

Last 30 days

-6.0%

Last 90 days

-1.0%

Trailing 12 Months

-23.4%

CACC Financial Health

CACC Investor Care

Buy Backs (1Y)

3.94%

Diluted EPS (TTM)

31.62

Peers (Alternatives to Credit Acceptance)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
AXP	116.8B	44.7B	0.98%	-4.20%	16.16	2.61	21.11%	-8.75%
COF	39.3B	34.2B	8.93%	-16.37%	12.7	1.15	30.10%	-55.86%
DFS	27.5B	14.2B	1.17%	-6.03%	6.66	1.94	32.25%	-19.07%
MID-CAP
ALLY	8.0B	11.6B	4.22%	-35.07%	5.81	0.69	30.73%	-52.79%
CACC	5.7B	1.8B	-6.01%	-23.38%	13.58	3.12	-1.62%	-56.62%
OMF	4.6B	4.4B	-0.96%	-6.68%	6.06	1.03	1.07%	-37.21%
FCFS	4.5B	2.8B	1.77%	36.78%	16.46	1.59	45.16%	128.93%
SLM	3.9B	2.2B	9.21%	-15.96%	8.57	1.75	22.06%	-30.04%
NNI	3.4B	1.1B	-0.46%	11.31%	8.44	2.76	-3.12%	-45.83%
SMALL-CAP
ENVA	1.5B	1.8B	12.31%	52.26%	7.12	0.8	37.43%	-11.56%
WRLD	687.8M	621.6M	14.33%	-22.72%	49.23	1.11	10.55%	-82.63%
ATLC	519.4M	1.1B	31.53%	-4.41%	4.45	0.48	29.40%	-34.69%
TREE	243.6M	902.3M	-14.96%	-66.98%	-1.49	0.27	-18.63%	-517.10%
RM	241.0M	507.2M	-2.54%	-44.97%	4.71	0.48	18.40%	-42.24%

Financials for Credit Acceptance

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Revenue	-0.1%	1,831	1,832	1,837	1,846	1,861
S&GA Expenses	3.8%	79.00	76.00	75.00	71.00	67.00
Costs and Expenses	13.9%	1,277	1,121	1,003	803	580
EBITDA	-11.1%	887	999	1,207	1,448	-
EBITDA Margin	-10.9%	0.48*	0.54*	0.65*	0.78*	-
Earnings Before Taxes	-22.2%	554	712	833	1,044	1,281
EBT Margin	-14.4%	0.39*	0.45*	0.57*	0.69*	-
Interest Expenses	10.7%	185	167	156	154	157
Net Income	-21.4%	421	536	626	789	971
Net Income Margin	-14.2%	0.29*	0.34*	0.43*	0.52*	-
Free Cahsflow	14.4%	1,236	1,080	1,021	1,112	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Assets	3.6%	7,155	6,905	6,892	6,979	7,038
Cash Equivalents	6239.0%	488	8.00	11.00	4.00	18.00
Net PPE	-2.5%	50.00	51.00	52.00	54.00	57.00
Liabilities	2.9%	5,432	5,281	5,303	5,458	5,410
Shareholder's Equity	6.1%	1,723	1,624	1,589	1,520	1,629
Retained Earnings	6.7%	1,473	1,381	1,357	1,296	1,419
Additional Paid-In Capital	2.6%	252	246	236	226	212
Shares Outstanding	0.6%	13.00	13.00	13.00	13.00	13.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Cashflow From Operations	-6.4%	1,159	1,239	1,083	1,027	1,120
Share Based Compensation	2.2%	37.00	37.00	46.00	53.00	33.00
Cashflow From Investing	-70.7%	-786	-460	-116	249	531
Cashflow From Financing	51.7%	-383	-794	-1,013	-1,705	-1,737
Buy Backs	-52.0%	376	785	1,057	1,735	1,760

Risks for CACC

What is the probability of a big loss on CACC?

56.9%

Probability that Credit Acceptance stock will be more than 20% underwater in next one year

53.5%

Probability that Credit Acceptance stock will be more than 30% underwater in next one year.

27.7%

Probability that Credit Acceptance stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does CACC drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Credit Acceptance was unfortunately bought at previous high price.

Drawdowns

Returns for CACC

Cumulative Returns on CACC

14.6%

10-Year Cumulative Returns

13.3%

7-Year Cumulative Returns

4.3%

5-Year Cumulative Returns

8.1%

3-Year Cumulative Returns

What are the long-term rolling returns for CACC?

FIve years rolling returns for Credit Acceptance.

Annualized Returns

Which funds bought or sold CACC recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-05-23	Capital Impact Advisors, LLC	reduced	-83.92	-331,925	57,557	0.07%
2023-05-22	AMERIPRISE FINANCIAL INC	reduced	-3.33	-144,726	1,150,270	-%
2023-05-18	NEW YORK STATE COMMON RETIREMENT FUND	reduced	-35.99	-2,202,000	3,147,000	-%
2023-05-18	JPMORGAN CHASE & CO	added	106	2,201,870	4,644,870	-%
2023-05-17	Advisory Services Network, LLC	sold off	-100	-474	-	-%
2023-05-17	VIRGINIA RETIREMENT SYSTEMS ET AL	sold off	-100	-613,200	-	-%
2023-05-16	KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	unchanged	-	-154	1,744	-%
2023-05-16	SUSQUEHANNA INTERNATIONAL GROUP, LLP	added	1,138	6,515,140	7,142,770	-%
2023-05-16	Rockefeller Capital Management L.P.	sold off	-100	-9,000	-	-%
2023-05-16	JANE STREET GROUP, LLC	added	651	2,478,120	2,897,490	-%

Latest Funds Activity

Are funds buying CACC calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own CACC

No. of Funds

Credit Acceptance News

Schedule 13G FIlings of Credit Acceptance

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	ruane, cunniff & goldfarb l.p.	6.18%	798,731	SC 13G/A
Feb 09, 2023	vanguard group inc	4.55%	588,413	SC 13G/A
Feb 06, 2023	wellington management group llp	4.96%	641,379	SC 13G/A
Sep 26, 2022	neary john p	11.24%	1,452,797	SC 13G
Sep 16, 2022	donald a. foss 2009 annuity trust	7.2%	931,323	SC 13D
May 09, 2022	prescott general partners llc	12.6%	1,657,373	SC 13D/A
Feb 15, 2022	principal global investors	2.15%	312,781	SC 13G/A
Feb 14, 2022	ruane, cunniff & goldfarb l.p.	6.15%	893,551	SC 13G/A
Feb 14, 2022	donald a. foss 2009 annuity trust	6.6%	931,323	SC 13G/A
Feb 14, 2022	foss donald a	10.3%	1,452,797	SC 13G/A

CACC Fair Value

Recent SEC filings of Credit Acceptance

View All Filings

Date Filed	Form Type	Document
May 05, 2023	ABS-15G	ABS-15G
May 04, 2023	8-K	Current Report
May 01, 2023	8-K	Current Report
May 01, 2023	10-Q	Quarterly Report
Apr 24, 2023	4	Insider Trading
Apr 21, 2023	DEFA14A	DEFA14A
Apr 21, 2023	DEF 14A	DEF 14A
Apr 21, 2023	ARS	ARS
Apr 20, 2023	4	Insider Trading
Apr 20, 2023	144	Notice of Insider Sale Intent

Latest Insider Trading transactions for CACC

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-04-20	Rostami Andrew K	sold	-230,500	500	-461	chief mktg and product officer
2023-04-18	Rostami Andrew K	sold (taxes)	-205,233	484	-424	chief mktg and product officer
2023-03-03	SMITH THOMAS W	sold	-225,059	450	-500	-
2023-02-02	Rummler Wendy A	acquired	333,940	333	1,000	chief people officer
2023-02-02	Rummler Wendy A	sold	-555,040	555	-1,000	chief people officer
2023-01-30	BUSK DOUGLAS W	sold (taxes)	-1,041,550	448	-2,321	chief treasury officer
2023-01-30	SMITH ARTHUR L	sold (taxes)	-1,351,640	448	-3,012	chief analytics officer
2023-01-30	KERBER ERIN J	sold (taxes)	-363,936	448	-811	chief legal officer
2023-01-30	LUM JONATHAN	sold (taxes)	-627,801	448	-1,399	chief operating officer
2023-01-30	Flanagan Glenda J	acquired	-	-	300	-

About Credit Acceptance

Kenneth S. Booth

www.creditacceptance.com

2070

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 underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts 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 was founded in 1972 and is headquartered in Southfield, Michigan.

CACC Income Statement

2023-03-31

Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Finance charges	$ 421.1	$ 424.1
Premiums earned	17.4	13.8
Other income	15.3	17.8
Total revenue	453.8	455.7
Costs and expenses:
Salaries and wages	77.2	64.4
General and administrative	18.0	18.9
Sales and marketing	22.1	19.2
Operating Expenses	117.3	102.5
Total provision for credit losses	137.4	23.3
Interest	54.4	36.5
Provision for claims	17.9	8.9
Total costs and expenses	327.0	171.2
Income before provision for income taxes	126.8	284.5
Provision for income taxes	27.3	70.2
Net income	$ 99.5	$ 214.3
Net income per share:
Basic (in usd per share)	$ 7.62	$ 15.02
Diluted (in usd per share)	$ 7.61	$ 14.94
Weighted average shares outstanding:
Basic (in shares)	13,057,617	14,268,518
Diluted (in shares)	13,073,316	14,341,523

CACC Balance Sheet

2023-03-31

Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions

Mar. 31, 2023

Dec. 31, 2022

ASSETS:

Cash and cash equivalents

$ 8.1

$ 7.7

Restricted cash and cash equivalents

480.0

410.0

Debt Securities, Available-for-sale, Restricted

76.4

72.3

Loans receivable

^[1],[2]

9,384.3

9,165.5

Allowance for credit losses

(2,884.0)

(2,867.8)

Loans receivable, net

6,500.3

6,297.7

Property and equipment, net

50.1

51.4

Income taxes receivable

11.0

8.7

Other assets

29.0

56.9

Total Assets

7,154.9

6,904.7

Liabilities:

Accounts payable and accrued liabilities

257.3

260.8

Revolving secured line of credit

145.1

30.9

Secured financing

3,771.8

3,756.4

Senior notes

795.0

794.5

Mortgage note

^[3]

8.8

8.9

Deferred income taxes, net

451.2

426.7

Income taxes payable

2.3

2.5

Total Liabilities

5,431.5

5,280.7

Commitments and Contingencies - See Note 15

Shareholders' Equity:

Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued

0.0

Common stock, $.01 par value, 80,000,000 shares authorized, 12,836,907 and 12,756,885 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

0.1

Paid-in capital

252.1

245.7

Retained earnings

1,473.3

1,381.1

Accumulated other comprehensive loss

(2.1)

(2.9)

Total Shareholders' Equity

1,723.4

1,624.0

Total Liabilities and Shareholders' Equity

$ 7,154.9

$ 6,904.7

Preferred stock, par value (in usd per share)

$ 0.01

Preferred stock, shares authorized

1,000,000

Preferred stock, shares issued

Common stock, par value (in usd per share)

$ 0.01

Common stock, shares authorized

80,000,000

Common stock, shares issued

12,836,907

12,756,885

Balance, shares

12,836,907

12,756,885

[1]	As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and measuring credit losses, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.
[2]	As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and measuring credit losses, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.
[3]	Measured at amortized cost with fair value disclosed.