Credit Acceptance Story

CACC -- USA Stock  

USD 481.83  4.88  1.00%

Macroaxis News
By Achuva Shats
The company chance of financial distress is now about 42.0 percent. We consider Credit Acceptance very steady. Credit Acceptance secures Sharpe Ratio (or Efficiency) of 0.065 which signifies that the organization had 0.065% of return per unit of standard deviation over the last 1 month. Our philosophy in foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Credit Acceptance Corporation which you can use to evaluate future volatility of the firm. Please confirm Credit Acceptance Risk Adjusted Performance of 0.0091 and Mean Deviation of 1.1 to double-check if risk estimate we provide are consistent with the epected return of 0.0881%.
Credit Acceptance current price build up may not be feasible

The entity has beta of 0.85. Credit Acceptance returns are very sensitive to returns on the market. As market goes up or down, Credit Acceptance is expected to follow. This firm dividends can provide a clue to current valuation of the stock. Credit Acceptance is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Let me now analyze Credit Acceptance Price to Earnings To Growth. Based on latest financial disclosure the price to earnings to growth indicator of Credit Acceptance Corporation is roughly 0.71 times. This is 123.83% lower than that of the Financial Services sector, and 115.78% lower than that of Credit Services industry, The Price to Earnings To Growth for all stocks is 85.48% higher than the firm.

Credit Acceptance reported previous year revenue of 1.13B. Net Income was 618.3M with profit before overhead, payroll, taxes, and interest of 1.05B. The current investor indifference towards the small price fluctuations of Credit Acceptance could raise concerns from investors as the firm closed today at a share price of 483.93 on 51319.000 in volume. The company management did not add any value to Credit Acceptance investors in June. However, most investors can still diversify their portfolios with Credit Acceptance to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.3553. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Credit Acceptance preserves 71.19% of operating margin. Credit Acceptance is trading at 489.48. This is 0.83 percent increase. Today lowest is 483.93. Credit Acceptance Return on Invested Capital is somewhat stable at the moment. Also, Credit Acceptance Shareholders Equity USD is increasing over the last 4 years. The current value of Credit Acceptance Shareholders Equity USD is 769,998,395.

 2008 2009 2018 2019 (projected)
Credit Acceptance Interest Expense 11,660,000  97,700,000  87,930,000  63,561,474 
Credit Acceptance Gross Profit 172,071,000  969,200,000  872,280,000  1,050,000,000 

To summarize, we see that Credit Acceptance Follows market closely. The company is overvalued with below average probability of bankruptcy within the next 24 months. Our present buy vs hold vs sell advice on the company is Strong Hold.

Credit Acceptance Balance Sheet Drivers

Exercise or conversion by Kenneth Booth of 1670 shares of Credit Acceptance subject to Rule 16b-3

Credit Acceptance Corporation insider trading alert for exercise of common stock by Kenneth Booth, Chief Financial Officer, on July 19, 2019. This event was filed by Credit Acceptance Corp with SEC on 2009-12-28. Statement of changes in beneficial ownership - SEC Form 4. Kenneth Booth is currently serves as cfo and chief accounting officer of Credit Acceptance [view details]   

About Contributor

Achuva Shats
   Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the prospective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Credit Acceptance Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

Story Momentum

This media report from Macroaxis distributed on July 10, 2019 was a factor to the next trading day price decrease.The overall trading delta against the next closing price was 0.01% . The overall trading delta when the story was published against the current closing price is 0.30% .

Similar stores for Credit Acceptance

2 days ago at MacroaxisInsider 
Exercise or conversion by Kenneth Booth of 1670 shares of Credit Acceptance subject to Rule 16b-3
Macroaxis News
Filed transaction by Credit Acceptance Corp officer. Exercise or conversion of derivative security exempted pursuant to Rule 16b-3
few days ago at MacroaxisInsider 
Sale by Brett Roberts of 2000 shares of Credit Acceptance
Macroaxis News
Filed transaction by Credit Acceptance Corp director. General open market or private sale of non-derivative or derivative security
over a week ago at MacroaxisInsider 
Sale by Brett Roberts of 100 shares of Credit Acceptance
Macroaxis News
Filed transaction by Credit Acceptance Corp director. General open market or private sale of non-derivative or derivative security

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Working Capital Comparative Analysis

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      Credit Acceptance Comparables 
Credit Acceptance is currently under evaluation in working capital category among related companies. Working Capital is measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is important indicator of the firm ability to continue its normal operations without additional debt obligations. .
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