ScoreComparison
Why is Credit Acceptance Corp. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 29.22%
2
Poor long term growth as Net Sales has grown by an annual rate of 7.80% and Operating profit at 6.66%
3
Positive results in Jun 25
- NET PROFIT(HY) At USD 194.6 MM has Grown at 1,031.4%
- ROCE(HY) Highest at 27.3%
- NET SALES(Q) Highest at USD 583.8 MM
4
With ROE of 17.00%, it has a expensive valuation with a 3.43 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.60%, its profits have risen by 15.2% ; the PEG ratio of the company is 1.1
5
High Institutional Holdings at 71.08%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.08% over the previous quarter.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.60% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Credit Acceptance Corp. should be less than 10%
- Overall Portfolio exposure to Finance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Credit Acceptance Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Credit Acceptance Corp.
-4.35%
-0.14
38.50%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.80%
EBIT Growth (5y)
6.66%
EBIT to Interest (avg)
6.40
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
24.66%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
71.08%
ROCE (avg)
144.72%
ROE (avg)
29.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
3.43
EV to EBIT
2.88
EV to EBITDA
2.84
EV to Capital Employed
8.20
EV to Sales
2.13
PEG Ratio
1.13
Dividend Yield
NA
ROCE (Latest)
284.28%
ROE (Latest)
17.00%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
NET PROFIT(HY)
At USD 194.6 MM has Grown at 1,031.4%
ROCE(HY)
Highest at 27.3%
NET SALES(Q)
Highest at USD 583.8 MM
RAW MATERIAL COST(Y)
Fallen by -0.12% (YoY
CASH AND EQV(HY)
Highest at USD 1,705.6 MM
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,109.8 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 351.65
DEBT-EQUITY RATIO
(HY)
Highest at 379.42 %
Here's what is working for Credit Acceptance Corp.
Net Profit
At USD 194.6 MM has Grown at 1,031.4%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 583.8 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 1,705.6 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -0.12% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Credit Acceptance Corp.
Operating Cash Flow
Lowest at USD 1,109.8 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Lowest at 351.65
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 379.42 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
