Is Credit Acceptance Stock a Good Investment?
Credit Acceptance Investment Advice | CACC |
- Examine Credit Acceptance's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Credit Acceptance's leadership team and their track record. Good management can help Credit Acceptance navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Credit Acceptance's business and its evolving consumer preferences.
- Compare Credit Acceptance's performance and market position to its competitors. Analyze how Credit Acceptance is positioned in terms of product offerings, innovation, and market share.
- Check if Credit Acceptance pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Credit Acceptance's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Credit Acceptance stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Credit Acceptance is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Credit Acceptance Stock
Researching Credit Acceptance's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 31.0% of the company shares are held by company insiders. The book value of Credit Acceptance was currently reported as 135.94. The company has Price/Earnings To Growth (PEG) ratio of 1.15. Credit Acceptance recorded earning per share (EPS) of 14.93. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 21st of December 1994.
To determine if Credit Acceptance is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Credit Acceptance's research are outlined below:
| About 66.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from news.google.com: Top US Growth Stocks With Strong Insider Ownership - Simply Wall St |
Credit Acceptance Quarterly Liabilities And Stockholders Equity |
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Credit Acceptance uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Credit Acceptance. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Credit Acceptance's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 31st of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Credit Acceptance's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Credit Acceptance's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1994-04-20 | 1994-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1994-01-25 | 1993-12-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1993-07-20 | 1993-06-30 | 0.06 | 0.07 | 0.01 | 16 | ||
2001-07-18 | 2001-06-30 | 0.16 | 0.18 | 0.02 | 12 | ||
1998-10-28 | 1998-09-30 | 0.1 | 0.12 | 0.02 | 20 | ||
1998-07-22 | 1998-06-30 | 0.14 | 0.16 | 0.02 | 14 | ||
2003-08-05 | 2003-06-30 | 0.16 | 0.19 | 0.03 | 18 | ||
2002-10-23 | 2002-09-30 | 0.19 | 0.22 | 0.03 | 15 |
Know Credit Acceptance's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Credit Acceptance is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Credit Acceptance backward and forwards among themselves. Credit Acceptance's institutional investor refers to the entity that pools money to purchase Credit Acceptance's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Smead Capital Management Inc | 2024-09-30 | 207.8 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 181.9 K | Alfreton Capital Llp | 2024-09-30 | 170 K | Rv Capital Gmbh | 2024-09-30 | 134.2 K | Mig Capital, Llc | 2024-09-30 | 116.5 K | State Street Corp | 2024-09-30 | 111.8 K | Geode Capital Management, Llc | 2024-09-30 | 111.4 K | Charles Schwab Investment Management Inc | 2024-09-30 | 94.1 K | Hsbc Holdings Plc | 2024-09-30 | 92.1 K | Prescott General Partners Llc | 2024-09-30 | 1.6 M | Prescott Investors Inc | 2024-09-30 | 1.6 M |
Credit Acceptance's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.87 B.Market Cap |
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Credit Acceptance's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.06 | |
| Return On Capital Employed | 0.05 | 0.10 | |
| Return On Assets | 0.03 | 0.06 | |
| Return On Equity | 0.15 | 0.18 |
Determining Credit Acceptance's profitability involves analyzing its financial statements and using various financial metrics to determine if Credit Acceptance is a good buy. For example, gross profit margin measures Credit Acceptance's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Credit Acceptance's profitability and make more informed investment decisions.
Please note, the presentation of Credit Acceptance's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Credit Acceptance's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Credit Acceptance's management manipulating its earnings.
Evaluate Credit Acceptance's management efficiency
Credit Acceptance has return on total asset (ROA) of 0.0236 % which means that it generated a profit of $0.0236 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1133 %, meaning that it created $0.1133 on every $100 dollars invested by stockholders. Credit Acceptance's management efficiency ratios could be used to measure how well Credit Acceptance manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.06. The current year's Return On Capital Employed is expected to grow to 0.1. At present, Credit Acceptance's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 9 B, whereas Other Assets are forecasted to decline to about 313.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 121.85 | 127.94 | |
| Tangible Book Value Per Share | 121.85 | 127.94 | |
| Enterprise Value Over EBITDA | 36.77 | 19.77 | |
| Price Book Value Ratio | 4.53 | 3.93 | |
| Enterprise Value Multiple | 36.77 | 19.77 | |
| Price Fair Value | 4.53 | 3.93 | |
| Enterprise Value | 10.8 B | 11.3 B |
Credit Acceptance showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta 1.429 |
Basic technical analysis of Credit Stock
As of the 18th of January 2025, Credit Acceptance shows the risk adjusted performance of 0.0487, and Mean Deviation of 1.52. Credit Acceptance technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Credit Acceptance's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Credit Acceptance insiders, such as employees or executives, is commonly permitted as long as it does not rely on Credit Acceptance's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Credit Acceptance insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Credit Acceptance's Outstanding Corporate Bonds
Credit Acceptance issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Credit Acceptance uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Credit bonds can be classified according to their maturity, which is the date when Credit Acceptance has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| International Game Technology Corp BondUS460599AD57 | View | |
| CREDIT ACCEP P Corp BondUS225310AM36 | View | |
| ACAFP 5301 12 JUL 28 Corp BondUS22534PAC77 | View | |
| ACAFP 1907 16 JUN 26 Corp BondUS22535WAG24 | View | |
| ACAFP 1247 26 JAN 27 Corp BondUS22535WAH07 | View | |
| ACAFP 4125 10 JAN 27 Corp BondUS22535WAB37 | View | |
| ACAFP 8125 Corp BondUS225313AJ46 | View | |
| ACAFP 4 10 JAN 33 Corp BondUS225313AK19 | View |
Understand Credit Acceptance's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Credit Acceptance's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0487 | |||
| Market Risk Adjusted Performance | 0.1829 | |||
| Mean Deviation | 1.52 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.2 | |||
| Coefficient Of Variation | 1957.71 | |||
| Standard Deviation | 2.07 | |||
| Variance | 4.28 | |||
| Information Ratio | 0.0367 | |||
| Jensen Alpha | 0.0847 | |||
| Total Risk Alpha | 0.0469 | |||
| Sortino Ratio | 0.0345 | |||
| Treynor Ratio | 0.1729 | |||
| Maximum Drawdown | 11.13 | |||
| Value At Risk | (2.82) | |||
| Potential Upside | 2.84 | |||
| Downside Variance | 4.85 | |||
| Semi Variance | 4.3 | |||
| Expected Short fall | (1.57) | |||
| Skewness | (0.71) | |||
| Kurtosis | 3.01 |
| Risk Adjusted Performance | 0.0487 | |||
| Market Risk Adjusted Performance | 0.1829 | |||
| Mean Deviation | 1.52 | |||
| Semi Deviation | 2.07 | |||
| Downside Deviation | 2.2 | |||
| Coefficient Of Variation | 1957.71 | |||
| Standard Deviation | 2.07 | |||
| Variance | 4.28 | |||
| Information Ratio | 0.0367 | |||
| Jensen Alpha | 0.0847 | |||
| Total Risk Alpha | 0.0469 | |||
| Sortino Ratio | 0.0345 | |||
| Treynor Ratio | 0.1729 | |||
| Maximum Drawdown | 11.13 | |||
| Value At Risk | (2.82) | |||
| Potential Upside | 2.84 | |||
| Downside Variance | 4.85 | |||
| Semi Variance | 4.3 | |||
| Expected Short fall | (1.57) | |||
| Skewness | (0.71) | |||
| Kurtosis | 3.01 |
Consider Credit Acceptance's intraday indicators
Credit Acceptance intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Credit Acceptance stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.0342 | |||
| Daily Balance Of Power | 0.1516 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 488.61 | |||
| Day Typical Price | 487.35 | |||
| Market Facilitation Index | 17.02 | |||
| Price Action Indicator | (2.50) | |||
| Period Momentum Indicator | 2.58 |
Credit Acceptance Corporate Filings
F4 | 16th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 23rd of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 6th of December 2024 Other Reports | ViewVerify | |
| 14th of June 2024 Other Reports | ViewVerify |
Credit Stock media impact
Far too much social signal, news, headlines, and media speculation about Credit Acceptance that are available to investors today. That information is available publicly through Credit media outlets and privately through word of mouth or via Credit internal channels. However, regardless of the origin, that massive amount of Credit data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Credit Acceptance news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Credit Acceptance relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Credit Acceptance's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Credit Acceptance alpha.
Credit Acceptance Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Credit Acceptance can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Credit Acceptance Historical Investor Sentiment
Investor biases related to Credit Acceptance's public news can be used to forecast risks associated with an investment in Credit. The trend in average sentiment can be used to explain how an investor holding Credit can time the market purely based on public headlines and social activities around Credit Acceptance. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Credit Acceptance's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Credit Acceptance and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Credit Acceptance news discussions. The higher the estimate score, the more favorable the investor's outlook on Credit Acceptance.
Credit Acceptance Maximum Pain Price Across April 17th 2025 Option Contracts
Credit Acceptance's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Credit Acceptance close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Credit Acceptance's options.
Credit Acceptance Corporate Management
| Wendy Rummler | Chief Officer | Profile | |
| Ravi Valiyaveettil | Chief Officer | Profile | |
| Jonathan Lum | Chief Officer | Profile | |
| Jay Martin | Senior Officer | Profile | |
| Noah Kotch | Chief Officer | Profile | |
| Ravi Mohan | Chief Officer | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Credit Acceptance. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade Credit Stock refer to our How to Trade Credit Stock guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Credit Acceptance. If investors know Credit will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Credit Acceptance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.169 | Earnings Share 14.93 | Revenue Per Share | Quarterly Revenue Growth 0.138 | Return On Assets |
The market value of Credit Acceptance is measured differently than its book value, which is the value of Credit that is recorded on the company's balance sheet. Investors also form their own opinion of Credit Acceptance's value that differs from its market value or its book value, called intrinsic value, which is Credit Acceptance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Credit Acceptance's market value can be influenced by many factors that don't directly affect Credit Acceptance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Credit Acceptance's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Credit Acceptance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credit Acceptance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.