Credit Acceptance Corporation (CACC) AI Stock Analysis

Credit Acceptance Corporation offers financing programs and related services to independent and franchised automobile dealers across the United States. Founded in 1972 and based in Southfield, Michigan, the company advances funds to dealers in exchange for the right to service underlying consumer loans, and also purchases consumer loans outright while managing collections. Additionally, Credit Acceptance operates in the reinsurance sector by providing coverage under vehicle service contracts sold by dealers to consumers to protect against unexpected repair costs.

Over a five-year period from FY2020 to FY2025, revenue grew at a CAGR of 6.8%, rising from $1.85B in FY2021 to $2.32B in FY2025. Net income dropped from $958.3M in FY2021 to $247.9M in FY2024 before recovering to $423.9M in FY2025, reflecting a net margin of 18.3%. Operating margin stood at 47.6% in FY2025. In the latest quarter ended June 30, 2026, revenue increased 9.5% year-over-year, while quarterly earnings surged 70.6%. TTM revenue was $1.30B with EPS of $45.35 and a profit margin of 38.5%.

As of June 30, 2026, Credit Acceptance Corporation held $1.4M in cash and short-term investments against $6.29B in total debt, resulting in net debt of $6.28B. Shareholders' equity was $1.59B, yielding a debt-to-equity ratio of 3.96, while total assets stood at $8.62B with a current ratio of 21.22. During FY2025, the company generated $1.05B in operating cash flow and free cash flow. Capital expenditures were modest at $1.6M, while share buybacks totaled $725.4M, contributing to a 28.0% share count reduction over five years.

CACC trades at a trailing P/E of 11.9x and a forward P/E of 10.3x, both lower than the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales of 4.3x and EV/EBITDA of 16.4x are higher than the peer group medians of 3.2x and 11.7x. Over the past year, CACC gained 13.7%, trailing the S&P 500's 16.8% return. Over five years, CACC fell 12.0%, compared to an 83.0% gain for the S&P 500.

All 3 covering analysts hold a Hold rating on CACC. The mean price target of $596.67 sits 10.3% above the October 16, 2026 closing price of $540.98. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.37B and EPS of $47.79, up 16.5%. For the next fiscal year, 3 analysts project revenue of $2.51B and EPS of $55.18. CACC beat EPS estimates in all 4 of its last four quarters, with its next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of Credit Acceptance Corporation (CACC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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