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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.04
CACC's Cash to Debt is ranked higher than
52% of the 124 Companies
in the Global Credit Services industry.

( Industry Median: 0.12 vs. CACC: 0.04 )
CACC' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: 0.04

Equity to Asset 0.31
CACC's Equity to Asset is ranked higher than
74% of the 121 Companies
in the Global Credit Services industry.

( Industry Median: 0.25 vs. CACC: 0.31 )
CACC' s 10-Year Equity to Asset Range
Min: 0.18   Max: 0.63
Current: 0.31

0.18
0.63
Interest Coverage 6.13
CACC's Interest Coverage is ranked higher than
82% of the 110 Companies
in the Global Credit Services industry.

( Industry Median: 3.32 vs. CACC: 6.13 )
CACC' s 10-Year Interest Coverage Range
Min: 2.19   Max: 7.67
Current: 6.13

2.19
7.67
F-Score: 5
Z-Score: 2.18
M-Score: -2.51
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 58.38
CACC's Operating margin (%) is ranked higher than
92% of the 129 Companies
in the Global Credit Services industry.

( Industry Median: 25.26 vs. CACC: 58.38 )
CACC' s 10-Year Operating margin (%) Range
Min: -16.12   Max: 60.17
Current: 58.38

-16.12
60.17
Net-margin (%) 37.11
CACC's Net-margin (%) is ranked higher than
92% of the 131 Companies
in the Global Credit Services industry.

( Industry Median: 16.25 vs. CACC: 37.11 )
CACC' s 10-Year Net-margin (%) Range
Min: -10.92   Max: 39.77
Current: 37.11

-10.92
39.77
ROE (%) 33.74
CACC's ROE (%) is ranked higher than
96% of the 132 Companies
in the Global Credit Services industry.

( Industry Median: 11.35 vs. CACC: 33.74 )
CACC' s 10-Year ROE (%) Range
Min: -4.78   Max: 35.85
Current: 33.74

-4.78
35.85
ROA (%) 10.40
CACC's ROA (%) is ranked higher than
94% of the 133 Companies
in the Global Credit Services industry.

( Industry Median: 2.80 vs. CACC: 10.40 )
CACC' s 10-Year ROA (%) Range
Min: -1.94   Max: 12.66
Current: 10.4

-1.94
12.66
ROC (Joel Greenblatt) (%) 1785.65
CACC's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 127 Companies
in the Global Credit Services industry.

( Industry Median: 33.24 vs. CACC: 1785.65 )
CACC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -102.35   Max: 1785.65
Current: 1785.65

-102.35
1785.65
Revenue Growth (%) 24.40
CACC's Revenue Growth (%) is ranked higher than
92% of the 113 Companies
in the Global Credit Services industry.

( Industry Median: 5.80 vs. CACC: 24.40 )
CACC' s 10-Year Revenue Growth (%) Range
Min: 0.8   Max: 30.4
Current: 24.4

0.8
30.4
EBITDA Growth (%) 24.80
CACC's EBITDA Growth (%) is ranked higher than
92% of the 97 Companies
in the Global Credit Services industry.

( Industry Median: 10.10 vs. CACC: 24.80 )
CACC' s 10-Year EBITDA Growth (%) Range
Min: -77.2   Max: 324.5
Current: 24.8

-77.2
324.5
EPS Growth (%) 23.00
CACC's EPS Growth (%) is ranked higher than
86% of the 94 Companies
in the Global Credit Services industry.

( Industry Median: 17.30 vs. CACC: 23.00 )
CACC' s 10-Year EPS Growth (%) Range
Min: -60.6   Max: 160.4
Current: 23

-60.6
160.4
» CACC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

CACC Guru Trades in Q1 2013

Chuck Royce 848 sh (unchged)
Steven Cohen Sold Out
Jim Simons 363,500 sh (-1.46%)
» More
Q2 2013

CACC Guru Trades in Q2 2013

Joel Greenblatt 2,301 sh (New)
Steven Cohen 2,390 sh (New)
Paul Tudor Jones 3,400 sh (New)
Chuck Royce 848 sh (unchged)
Jim Simons 342,800 sh (-5.69%)
» More
Q3 2013

CACC Guru Trades in Q3 2013

Murray Stahl 3,067 sh (New)
Joel Greenblatt 2,966 sh (+28.9%)
Steven Cohen 2,467 sh (+3.22%)
Chuck Royce 848 sh (unchged)
Jim Simons 342,800 sh (unchged)
Paul Tudor Jones Sold Out
» More
Q4 2013

CACC Guru Trades in Q4 2013

Paul Tudor Jones 1,693 sh (New)
Murray Stahl 4,072 sh (+32.77%)
Joel Greenblatt 3,114 sh (+4.99%)
Chuck Royce 848 sh (unchged)
Steven Cohen Sold Out
Jim Simons 327,500 sh (-4.46%)
» More
» Details

Insider Trades

Latest Guru Trades with CACC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-09-30 Add 28.9%$104.05 - $115.3 $ 140.0726%2966
Joel Greenblatt 2013-06-30 New Buy0.01%$96.75 - $120.71 $ 140.0730%2301
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about Credit Acceptance Corporation

Credit Acceptance Corporation (CACC) Analysis
Credit Acceptance Corporation (CACC) is one of the U.S. companies listed in Buffett-Munger Screener and Undervalued Predictable Companies Screener on GuruFocus. From the latest guru trades of the third quarter in 2013, we can see Murray Stahl bought it as a new position, while Joel Greenblatt added more shares to his portfolio. Steven Cohen, Jim Simons and Chuck Royce also held CACC in their 09/30/2013 portfolios. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 13.30
CACC's P/E(ttm) is ranked higher than
59% of the 118 Companies
in the Global Credit Services industry.

( Industry Median: 12.40 vs. CACC: 13.30 )
CACC' s 10-Year P/E(ttm) Range
Min: 6.34   Max: 30.71
Current: 13.3

6.34
30.71
P/B 4.00
CACC's P/B is ranked lower than
68% of the 132 Companies
in the Global Credit Services industry.

( Industry Median: 1.40 vs. CACC: 4.00 )
CACC' s 10-Year P/B Range
Min: 1.2   Max: 5.24
Current: 4

1.2
5.24
P/S 4.90
CACC's P/S is ranked lower than
67% of the 126 Companies
in the Global Credit Services industry.

( Industry Median: 2.50 vs. CACC: 4.90 )
CACC' s 10-Year P/S Range
Min: 1.35   Max: 6.44
Current: 4.9

1.35
6.44
PFCF 10.80
CACC's PFCF is ranked lower than
53% of the 72 Companies
in the Global Credit Services industry.

( Industry Median: 7.30 vs. CACC: 10.80 )
CACC' s 10-Year PFCF Range
Min: 2.86   Max: 14.21
Current: 10.8

2.86
14.21
EV-to-EBIT 12.00
CACC's EV-to-EBIT is ranked higher than
82% of the 119 Companies
in the Global Credit Services industry.

( Industry Median: 16.90 vs. CACC: 12.00 )
CACC' s 10-Year EV-to-EBIT Range
Min: 6.9   Max: 40.1
Current: 12

6.9
40.1
PEG 0.50
CACC's PEG is ranked higher than
81% of the 80 Companies
in the Global Credit Services industry.

( Industry Median: 1.09 vs. CACC: 0.50 )
CACC' s 10-Year PEG Range
Min: 0.26   Max: 0.82
Current: 0.5

0.26
0.82
Shiller P/E 20.80
CACC's Shiller P/E is ranked lower than
51% of the 76 Companies
in the Global Credit Services industry.

( Industry Median: 18.31 vs. CACC: 20.80 )
CACC' s 10-Year Shiller P/E Range
Min: 7.75   Max: 43.63
Current: 20.8

7.75
43.63

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.30
CACC's Price/Tangible Book is ranked lower than
69% of the 127 Companies
in the Global Credit Services industry.

( Industry Median: 1.70 vs. CACC: 4.30 )
CACC' s 10-Year Price/Tangible Book Range
Min: 0.64   Max: 9.86
Current: 4.3

0.64
9.86
Price/DCF (Projected) 0.80
CACC's Price/DCF (Projected) is ranked higher than
57% of the 60 Companies
in the Global Credit Services industry.

( Industry Median: 0.70 vs. CACC: 0.80 )
CACC' s 10-Year Price/DCF (Projected) Range
Min: 0.2   Max: 1.29
Current: 0.8

0.2
1.29
Price/Median PS Value 1.20
CACC's Price/Median PS Value is ranked higher than
59% of the 119 Companies
in the Global Credit Services industry.

( Industry Median: 1.20 vs. CACC: 1.20 )
CACC' s 10-Year Price/Median PS Value Range
Min: 0.34   Max: 3.49
Current: 1.2

0.34
3.49
Price/Peter Lynch Fair Value 0.50
CACC's Price/Peter Lynch Fair Value is ranked higher than
79% of the 39 Companies
in the Global Credit Services industry.

( Industry Median: 0.70 vs. CACC: 0.50 )
CACC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.37   Max: 0.94
Current: 0.5

0.37
0.94
Price/Graham Number 1.60
CACC's Price/Graham Number is ranked lower than
59% of the 116 Companies
in the Global Credit Services industry.

( Industry Median: 0.90 vs. CACC: 1.60 )
CACC' s 10-Year Price/Graham Number Range
Min: 0.58   Max: 4.23
Current: 1.6

0.58
4.23
Earnings Yield (Greenblatt) 8.30
CACC's Earnings Yield (Greenblatt) is ranked higher than
84% of the 127 Companies
in the Global Credit Services industry.

( Industry Median: 5.50 vs. CACC: 8.30 )
CACC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.5   Max: 14.5
Current: 8.3

2.5
14.5
Forward Rate of Return (Yacktman) 32.71
CACC's Forward Rate of Return (Yacktman) is ranked higher than
83% of the 102 Companies
in the Global Credit Services industry.

( Industry Median: 12.04 vs. CACC: 32.71 )
CACC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 5.2   Max: 43.7
Current: 32.71

5.2
43.7

Business Description

Industry: Credit Services » Credit Services
Compare:V, MA, TCAP, RDCRL, AXP » details
Credit Acceptance Corporation is a financing company. The Company offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit history. The company's product is offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for its product, but who actually end up qualifying for traditional financing. The company refers to dealers who participate in its programs, and upon enrollment in its programs, the dealer-partner enters into a dealer servicing agreement with the company that defines their legal relationship. The dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on retail installment contracts from the dealer-partners to the company. A consumer who does not qualify for conventional automobile financing could purchase a used vehicle from a Credit Acceptance dealer-partner and finance the purchase through the Company. It is an indirect lender from a legal perspective, meaning the consumer loan is originated by the dealer-partner and immediately assigned to it. The company has two main programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, it advances money to dealer-partners in exchange for the right to service the underlying Consumer Loan. Under the Purchase Program, it buys the Consumer Loan from the dealer-partner and keeps all amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as 'Loans'. The Company mainly competes with dealerships, banks, captive finance affiliates of automobile manufacturers, credit unions and independent finance companies both publicly and privately owned. The Company's business is subject to laws and regulations, including the Truth in Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act and other various state and federal laws and regulations.

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