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Credit AcceptanceFRA:2D5 -1.85%73 Gross Margin % is 62.98% as of Mar. 2026, which is 14% below its 10-year median of 73.29. GuruFocus rates FRA:2D5 with a GF Score™ of 73/100 and a GF Value™ of €523.89. The stock has 11 warning signs investors should review. Among 387 Credit Services companies, Credit Acceptance ranks better than 62.27% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Credit Acceptance had a gross margin of 62.98% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Credit Acceptance Gross Margin % Related Terms
Credit Acceptance Gross Margin % Historical Data
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The historical data trend for Credit Acceptance's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:2D5 vs OMF, ENVA, SEZL: Gross Margin % Comparison
For the Credit Services subindustry, Credit Acceptance's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Credit Acceptance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Credit Acceptance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Credit Acceptance's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Credit Acceptance (FRA:2D5) has a Gross Margin % of 62.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Credit Acceptance and its competitors. This is 14% below median its historical median of 73.29. Over the past decade, Credit Acceptance's Gross Margin % has ranged from 61.90 to 77.25. According to the industry distribution chart, Credit Acceptance ranks #146 out of 387 companies in the Credit Services industry, placing it in the top 37.7%.
Is Credit Acceptance's Gross Margin % too high?
Credit Acceptance's current Gross Margin % of 62.98% is 14% below median its 10-year median of 73.29. Over the past 10 years, this metric has ranged from a low of 61.90 to a high of 77.25. The Credit Services industry median Gross Margin % is 51.81. Credit Acceptance's value of 62.98% is 21.6% above this industry median. Based on the distribution chart, Credit Acceptance ranks #146 out of 387 companies in the Credit Services industry, which is above the industry midpoint. Overall, Credit Acceptance has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Credit Acceptance's Gross Margin % compare to OMF and ENVA?
According to the Credit Services industry distribution chart, Credit Acceptance ranks #146 out of 387 companies for Gross Margin %. This puts Credit Acceptance in the upper half of its industry. The industry median Gross Margin % is 51.81. Credit Acceptance's value of 62.98% is 21.6% above this benchmark. Historically, Credit Acceptance's own Gross Margin % has ranged from 61.90 to 77.25 over the past decade. While the company's 10-year median is 73.29 vs. the industry median of 51.81, Credit Acceptance has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.81, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Credit Acceptance's current Gross Margin % of 62.98% is 21.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Credit Acceptance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credit Acceptance's current Gross Margin % is 62.98%, which is 14% below median its own 10-year median of 73.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Credit Acceptance stock overvalued right now?
Credit Acceptance (FRA:2D5) has a current Gross Margin % of 62.98%. The stock's GF Value™ is €523.89, compared to a current price of €530.00 — trading 1.2% above its estimated fair value. The current Gross Margin % is 62.98%, which is 14% below median its 10-year median of 73.29 and 21.6% above the Credit Services industry median of 51.81. Credit Acceptance's overall GF Score™ is 73/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Credit Acceptance (FRA:2D5), the current Gross Margin % is 62.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Credit Acceptance (FRA:2D5) Overvalued in 2026?
Based on GuruFocus' analysis, Credit Acceptance stock appears to be overvalued.
The current stock price of €530.00 is trading 1.2% above its estimated GF Value™ of €523.89.
Key valuation signals for FRA:2D5:
Gross Margin %: 62.98% (14% below median its 10-year median of 73.29)
GF Value™: €523.89 vs. price of €530.00 (1.2% above fair value)
Industry Position: 21.6% above the Credit Services median (#146 of 387)
No single metric tells the full story. See the FRA:2D5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Credit Acceptance Corp is a consumer finance company that specializes in automobile loans. These loans are offered through a U.S. nationwide network of automobile dealers that benefit from sales of vehicles to consumers who could otherwise not obtain financing. The company also benefits from repeat and referral sales, and from sales to customers responding to advertisements for financing, but qualify for traditional financing. The company derives its revenue from finance charges, premiums earned on the reinsurance of vehicle service contracts, and other fees. Of these, financing charges, including servicing fees, are by far a source of revenue.
73GF Score
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