Credit Acceptance Corporation Common Stock (CACC)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Credit Acceptance is a niche auto lender: it advances money to dealers and collects from consumers, often those with impaired credit. That can be a good business when underwriting is disciplined, and the filed numbers show real strength. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $587.4 million, net income $135.9 million, and diluted EPS $12.66. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $583.8 million, net income $87.4 million, and diluted EPS $7.42. For FY2025, ended 2025-12-31, revenue was $2.3B, net income $423.9M, and diluted EPS $36.38, versus FY2024 net income of $247.9M and diluted EPS of $19.88. FairStock calculations at the 2026-10-13 close of $545.96 show a P/E of 12.05, P/B of 3.57, ROE of 31.93%, ROCE of 5.79%, and debt-to-equity of 3.96. The Piotroski F-Score is 9/9, and trailing FCF of $1.2B gives a 21.5% FCF yield. But the Graham Number is $395.11, leaving a negative margin of safety of 38.18%, and the Altman Z-Score of 1.91 signals balance-sheet caution. Its dealer relationships may be a narrow edge, but high leverage means the moat is not the fortress kind. Growth is uneven: FairStock labels it a SLOW GROWER, with five-year profit growth of 0.1% a year and revenue growth of 6.8%. I see a leveraged, cash-generative lender whose valuation depends on credit staying benign; it is not a classic bargain on conservative asset value.

In plain English: Credit Acceptance provides car financing through dealerships, mainly for buyers who may not qualify for regular loans, and it collects the payments on those loans. The business is profitable and generates cash, but it uses a lot of borrowed money and its long-term growth has been slow. At the recent price of $545.96, the shares look expensive compared with a conservative value estimate, though they look cheaper based on recent cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer