Credit Acceptance Corporation
- Open
- 630.59
- Day high
- 640.21
- Day low
- 629.02
- Prev close
- 637.55
- Volume
- 77K
- Mkt cap
- $6.7B
- P/E (TTM)
- 15.6
- EPS (TTM)
- $40.99
- P/B
- 4.4
- P/S
- 2.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$48.4M over the last 3 months (0 open-market buys, 153 sales)
- 🏛Institutions mixed (13F)
Credit Acceptance Corporation (CACC) is a Financial Services company listed on NASDAQ. The stock is up 28% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 153 sales (SEC Form 4).
Credit Acceptance Corporation (CACC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CACC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $10.61 | $10.71 | +0.9% | $580M | -0.1% |
| Jan 29, 2026 | $10.30 | $11.35 | +10.2% | $580M | -0.7% |
| Oct 30, 2025 | $9.87 | $10.28 | +4.2% | $576M | -2.9% |
| Jul 31, 2025 | $9.84 | $8.56 | -13.0% | $576M | -2.4% |
| Apr 30, 2025 | $10.31 | $8.66 | -16.0% | $562M | -0.9% |
| Jan 30, 2025 | $7.70 | $12.26 | +59.2% | $558M | -1.2% |
| Oct 30, 2024 | $9.21 | $6.35 | -31.1% | $544M | -0.8% |
| Jul 31, 2024 | $7.20 | $-3.83 | -153.2% | $538M | +12.4% |
| Apr 30, 2024 | $6.81 | $5.08 | -25.4% | $508M | +11.5% |
| Jan 31, 2024 | $5.43 | $7.29 | +34.3% | $492M | +0.4% |
| Aug 1, 2023 | $8.18 | $1.69 | -79.3% | $461M | -0.7% |
| May 1, 2023 | $8.81 | $7.61 | -13.6% | $439M | -4.3% |
CACC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | Schumann Steffenofficer: Chief Business Officer | Grant | 3,494 | — |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 503 | $663.28 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 53 | $648.68 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 689 | $653.08 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 175 | $657.11 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 813 | $664.11 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 447 | $650.92 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 80 | $666.22 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 562 | $651.94 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 1,130 | $648.32 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 156 | $659.02 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 1,037 | $651.80 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 869 | $654.76 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 1,503 | $649.38 |
| Jul 7, 2026 | Watson Jill Foss10 percent owner | Sell | 81 | $665.28 |
Source: CACC SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full CACC insider & 13F page →Credit Acceptance Corporation company profile
Overview
Credit Acceptance Corporation (NASDAQ:CACC) is a specialized financial services company founded in 1972 and headquartered in Southfield, Michigan. The company went public in 1992 and has established itself as a leading provider of financing solutions for subprime automobile purchases in the United States. Credit Acceptance operates in the niche market of providing credit to consumers who typically cannot obtain traditional auto financing due to limited or poor credit histories, working exclusively through a network of independent and franchised automobile dealers across the country.
Business
Credit Acceptance Corporation operates in the subprime auto financing industry, which serves consumers who have difficulty obtaining traditional auto loans due to poor or limited credit histories. The company's core business revolves around enabling these consumers to purchase used vehicles by providing financing through automobile dealers. The company's primary service is consumer loan financing for vehicle purchases. When a consumer with subprime credit wants to buy a car from a participating dealer, Credit Acceptance provides the financing that traditional banks and credit unions would typically decline. The company has developed sophisticated underwriting models to assess risk and price loans appropriately for this higher-risk consumer segment. Credit Acceptance operates through two main business models. In their Portfolio Program, which represents the majority of their business, the company purchases consumer loans from dealers and retains the credit risk while sharing profits with dealers based on loan performance. In their Purchase Program, the company advances money to dealers in exchange for the right to service the underlying consumer loans, with dealers retaining more of the credit risk. The company also provides vehicle service contract reinsurance, offering coverage for extended warranties sold by dealers on vehicles they finance. This represents a smaller portion of their revenue but provides additional income streams and strengthens dealer relationships. With a loan portfolio of $9.1 billion as of Q1 2025 and relationships with over 10,000 active dealers nationwide, Credit Acceptance has captured approximately 6% market share in the subprime used vehicle financing segment. The company processes over 100,000 loan contracts annually and maintains one of the largest networks of dealers specializing in subprime auto sales.
Revenue model
Credit Acceptance generates revenue through multiple streams within its auto financing ecosystem. The primary revenue source is interest income from consumer loans, where the company earns the spread between what consumers pay and the company's cost of capital. Given the subprime nature of their customer base, these loans carry higher interest rates than traditional auto loans to compensate for increased default risk. The company also earns portfolio profits that are shared with dealers based on loan performance. When loans perform better than initially expected, dealers receive additional payments, creating an incentive structure that aligns dealer and company interests. In Q1 2025, the company paid $68 million in dealer holdback payments. Service fee income represents another revenue stream, generated from loan servicing activities including payment processing, customer service, and collection activities. The company collected $1.4 billion from consumers in Q1 2025, earning fees on these servicing activities. The company's reinsurance business generates additional revenue by providing coverage for vehicle service contracts sold by dealers, earning premium income while taking on warranty-related risks. Several factors influence Credit Acceptance's profitability margins. Economic conditions significantly impact loan performance, as subprime borrowers are particularly sensitive to unemployment, inflation, and economic downturns. The company has experienced challenges with loans originated in 2022 due to inflation pressures on consumers and declining used car values. Competition in the subprime lending market affects both loan pricing and dealer relationships, with increased competition potentially reducing spreads. Used vehicle prices impact loan performance since vehicles serve as collateral, with declining values increasing loss severity upon default. Regulatory changes in consumer lending can affect operational costs and lending practices. The company's cost of capital, influenced by credit markets and their own credit rating, directly impacts net interest margins since they fund loans through debt issuances and securitizations.
Competitive moat
Credit Acceptance possesses a moderate but defensible moat built primarily around its specialized expertise in subprime auto lending and extensive dealer network. The company's core competitive advantage lies in its proprietary underwriting models developed over five decades of lending to subprime consumers. These models incorporate thousands of data points to assess creditworthiness and price risk for a consumer segment that traditional lenders struggle to evaluate effectively. The company's dealer network of over 10,000 active relationships creates significant switching costs and network effects. Dealers specializing in subprime sales depend on Credit Acceptance's willingness to finance customers that other lenders reject. Building these relationships requires time and trust, as dealers must confidence in the lender's consistency and reliability. The company's shared-risk model, where dealers participate in loan profits and losses, further strengthens these partnerships. Regulatory barriers provide some protection, as consumer lending requires licenses, compliance infrastructure, and capital requirements that create hurdles for new entrants. The company's experience navigating complex state and federal regulations across all 50 states represents accumulated institutional knowledge. However, the moat faces several vulnerabilities. Large banks and fintech companies increasingly target the subprime auto market using advanced analytics and digital platforms, potentially offering faster approvals and better customer experiences. Buy-here-pay-here dealers who finance customers directly represent competitive pressure, as they can offer immediate financing without third-party involvement. Regulatory scrutiny of subprime lending practices poses ongoing risks, with potential changes in consumer protection laws affecting business operations. The company's moat is also challenged by the cyclical nature of subprime lending, where economic downturns can rapidly deteriorate loan performance and force pricing adjustments. Unlike businesses with recurring revenue or asset-light models, Credit Acceptance must continuously originate new loans and manage credit risk, making the business inherently capital-intensive and sensitive to economic cycles.
Risks & safety
Credit Acceptance demonstrates strong financial stability with minimal solvency risk, though valuation appears elevated relative to recent earnings volatility. **Liquidity and Solvency:** - Cash position of $529 million provides substantial liquidity buffer - Current ratio of 63.3 indicates excellent short-term liquidity - Free cash flow of $346 million in Q1 2025 demonstrates strong cash generation - No traditional debt-to-equity concerns as business model relies on asset-backed financing - Strong balance sheet with $9.3 billion in total assets **Valuation Metrics:** - P/E ratio of 14.7 appears reasonable but elevated given recent earnings volatility - Price-to-book ratio of 3.6 suggests premium valuation - Graham number of 167 indicates stock trading well above conservative valuation metrics - Recent earnings have been impacted by loan performance issues, particularly 2022 vintage **Other Considerations:** - Business model inherently cyclical and sensitive to economic conditions - Loan portfolio performance has faced headwinds with negative forecast revisions - Strong competitive position but operating in challenging regulatory environment - Management maintains conservative approach with significant cash reserves
Recent development
Over the past few years, Credit Acceptance has focused on several key strategic initiatives while navigating significant operational challenges. The company has undertaken a major technology modernization effort, investing heavily in upgrading their internal systems and improving products for both dealers and consumers. This multi-year initiative aims to enhance the digital experience and streamline operations, though management acknowledges these investments have yet to generate measurable returns. The company has experienced significant loan performance challenges, particularly with loans originated in 2022. These loans have consistently underperformed expectations due to a combination of factors including inflation pressures on subprime consumers, competitive lending conditions during origination, and declining used vehicle values. Management has made multiple downward revisions to forecasted cash flows, with the most recent quarter showing the smallest decline in eight quarters, suggesting potential stabilization. Market share expansion has been a notable achievement, with Credit Acceptance growing from 4.8% market share in 2023 to over 6% in 2024 in their core subprime segment. The company has consistently achieved double-digit unit volume growth over nine consecutive quarters, while simultaneously expanding their dealer network to over 10,000 active relationships. In response to performance challenges, the company implemented scorecard changes in Q3 2024 that resulted in lower advance rates to dealers, reflecting more conservative underwriting standards. Management has also maintained higher cash reserves as a conservative measure during periods of market uncertainty. The company has enhanced their forecasting methodology to better account for economic volatility and loan performance variations. They've also continued expanding their dealer network while focusing on improving dealer engagement and support through their go-to-market approach.
CACC company profile · for informational purposes only — not investment advice.
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