CACCCACC
US • —
$636.74
P/E
15.82
PEG
0.24
FCF Yield
—
Rev Growth YoY
+4.5% YoY
Gross Margin
—
Health Score
4/10
D/E Ratio
4.17
Confidence
LOW
Business Snapshot
Credit Acceptance Corporation (CACC) operates in the auto finance sector, specializing in subprime auto loans. The company provides vehicle financing to consumers with limited or impaired credit histories and purchases loans from a network of automobile dealers. It holds a niche leadership position within the subprime auto lending market, supported by its proprietary credit-scoring system and long-standing dealer relationships. Based on the available non-financial data, this would be classified as a mid-cap company. The defining characteristic of CACC is its high exposure to subprime borrowers, making it sensitive to consumer credit cycles and economic downturns.
Financial Health
Net margin (TTM) stands at 19.5%, indicating strong profitability from its core lending operations; however, gross margin data is unavailable for trend comparison. The balance sheet shows significant leverage with a Debt/Equity ratio of 4.17x and a dangerously low Current Ratio of 0.03x, suggesting the company relies heavily on borrowed funds and faces acute liquidity risk in the short term...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 4.17x is extremely high, and a current ratio of 0.03x indicates acute short-term liquidity risk.
- EARNINGS QUALITY — Zero out of four recent quarters have beaten analyst estimates, raising concerns about management guidance and earnings predictability.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER ACTIVITY — Insiders have sold 6 times versus 0 buys in the last 90 days, a clear bearish signal from those with the most intimate knowledge of the company.
- VALUATION — Though P/E is below the sector average, the discount is likely a compensation for severe debt and liquidity risks....
Net margin (TTM) stands at 19.5%, indicating strong profitability from its core lending operations; however, gross margin data is unavailable for trend comparison. The balance sheet shows significant leverage with a Debt/Equity ratio of 4.17x and a dangerously low Current Ratio of 0.03x, suggesting the company relies heavily on borrowed funds and faces acute liquidity risk in the short term. Return on equity is robust at 29.4%, reflecting efficient use of shareholder equity to generate profits. Free cash flow figures are unavailable, preventing a direct assessment of cash generation. Overall, the financial health is mixed—high leverage and poor liquidity are offset by strong margins and ROE, meaning the company is operationally profitable but carries substantial financial risk that could impair its ability to reinvest or withstand a credit shock.
- DEBT / LIQUIDITY — Debt/equity of 4.17x is extremely high, and a current ratio of 0.03x indicates acute short-term liquidity risk. - EARNINGS QUALITY — Zero out of four recent quarters have beaten analyst estimates, raising concerns about management guidance and earnings predictability. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER ACTIVITY — Insiders have sold 6 times versus 0 buys in the last 90 days, a clear bearish signal from those with the most intimate knowledge of the company. - VALUATION — Though P/E is below the sector average, the discount is likely a compensation for severe debt and liquidity risks.
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