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 6.85% and Operating profit at 3.59%
3
Flat results in Dec 25
- OPERATING CASH FLOW(Y) Lowest at USD 1,054.6 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 275.31
- RAW MATERIAL COST(Y) Grown by 101.02% (YoY)
4
With ROE of 29.71%, it has a fair valuation with a 3.14 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 -11.23%, its profits have risen by 82.6% ; the PEG ratio of the company is 0.1
5
High Institutional Holdings at 85.94%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 13.81% over the previous quarter.
6
Below par performance in long term as well as near term
- Along with generating -11.23% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Credit Acceptance Corp.
-11.23%
-0.22
41.37%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.85%
EBIT Growth (5y)
3.59%
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
85.94%
ROCE (avg)
144.72%
ROE (avg)
29.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
3.14
EV to EBIT
2.75
EV to EBITDA
2.70
EV to Capital Employed
4.21
EV to Sales
1.84
PEG Ratio
0.11
Dividend Yield
NA
ROCE (Latest)
153.14%
ROE (Latest)
29.71%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET PROFIT(9M)
Higher at USD 345.42 MM
PRE-TAX PROFIT(Q)
Highest at USD 192.8 MM
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,054.6 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 275.31
RAW MATERIAL COST(Y)
Grown by 101.02% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 383.68 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 64.91 times
Here's what is working for Credit Acceptance Corp.
Net Profit
At USD 345.42 MM has Grown at 88.14%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Pre-Tax Profit
Highest at USD 192.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Higher at USD 345.42 MM
than preceding 12 month period ended Dec 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (USD MM)
Here's what is not working for Credit Acceptance Corp.
Operating Cash Flow
Lowest at USD 1,054.6 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 275.31
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 383.68 %
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
Debtors Turnover Ratio
Lowest at 64.91 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 101.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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