CACCNEUTRAL

Gross Margin

63.0%

Higher than 45% of Financial Services sector peers

Updated 118h ago

Sector Performance

45th percentile

CACC

63.0%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Credit Acceptance Corporation’s current Gross Margin of 63.0% means that for every dollar of revenue, the company keeps $0.63 after deducting the direct costs of providing its services; it is a measure of core profitability before other expenses.

Among Financial Services sector peers, this figure sits below the sector median of 70.4%, placing the company in the 41st percentile — meaning 59% of peers have a higher gross margin. The available trend data shows no year-over-year change, but quarter-over-quarter the margin fell by 36.3%, dropping from 98.9% to 63.0%. This combination of a below-median level and a sharp quarterly decline points to near-term cost or revenue mix pressures, increasing investment risk relative to peers. While the metric alone does not signal an outright bearish case — the drop may be a one-time adjustment — it contradicts a bullish outlook and instead supports the overall NEUTRAL verdict by highlighting a clear weakness that warrants monitoring.

Frequently Asked Questions

What does the Gross Margin tell investors about CACC?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CACC's Gross Margin compare to its sector?

CACC's Gross Margin of 63.0% compares to a Financial Services sector median of 68.5%, placing it in the 45th percentile.

Who are CACC's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: HDB (58.4%), COF (57.8%), AFL (57.5%), HSBC (56.5%), PFG (53.9%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.