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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Credit Acceptance's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.44%.
As of today (2026-07-16), Credit Acceptance's WACC % is 6.36%. Credit Acceptance's ROC % is 6.03% (calculated using TTM income statement data).
Credit Acceptance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Credit Acceptance (STU:2D5) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Credit Acceptance's WACC % is 6.36%. Credit Acceptance's ROC % is 6.03% (calculated using TTM income statement data).
Credit Acceptance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Credit Acceptance ROC % Related Terms
Credit Acceptance ROC % Historical Data
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The historical data trend for Credit Acceptance's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Credit Acceptance (STU:2D5) has a ROC % of 6.44% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Credit Acceptance and its competitors.
Is Credit Acceptance's ROC % too high?
Credit Acceptance's current ROC % is 6.44%. The Credit Services industry median ROC % is 1.98. Credit Acceptance's value of 6.44% is 226.1% above this industry median. 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 ROC % compare to OMF and ENVA?
Credit Acceptance's ROC % of 6.44% can be compared against companies in the Credit Services industry. The industry median ROC % is 1.98. Credit Acceptance's value of 6.44% is 226.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Credit Services company?
The median ROC % among Credit Services companies is 1.98, based on 418 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Credit Acceptance's current ROC % of 6.44% is 226.1% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Credit Acceptance and its competitors. For the Credit Services industry, the median ROC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credit Acceptance's current ROC % is 6.44%. 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 (STU:2D5) has a current ROC % of 6.44%. 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 ROC % is 6.44% and 226.1% above the Credit Services industry median of 1.98. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Credit Acceptance (STU:2D5), the current ROC % is 6.44% 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 (STU: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 STU:2D5:
ROC %: 6.44%
GF Value™: €523.89 vs. price of €530.00 (1.2% above fair value)
Industry Position: 226.1% above the Credit Services median
No single metric tells the full story. See the STU: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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