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/CACC
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Credit Acceptance Corp

Credit Acceptance Corp

CACC
$640.00USD↑+0.38%+2.45 today

MARKET CAP

6.7B

P/E (TTM)

17.1x

FWD P/E

12.5x

DAY RANGE

$629 – $641

52W RANGE

$402
$669

AI Summary

Stalk
Buy NowMedium

After a corrective pullback, CACC held support at the rising 9/21 EMAs and the 50-day MA, and has bounced to resume its Stage 2 advance. Higher highs and higher lows remain intact, RSI recovery and neutral Options Score suggest stabilizing momentum, and Free Cash Flow + Buybacks strategy favors low-volatility entries at structural support. Buying now aligns with both structural and tactical criteria.

  • ↑Earnings yield of 1.05 highlights strong underlying cash flows.
  • ↑Positive analyst revisions signal upward earnings trajectory.
  • ↓Market share declined from 5.4% to 4.5% amid intensifying competition.
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The case for & against

Bull & Bear analysis

Bullish

Credit Acceptance Corporation (NASDAQ: CACC) is a leading player in the automotive finance sector, particularly known for providing financing solutions to subprime borrowers. The company enables dealerships to effectively sell vehicles to consumers facing credit challenges, placing a strong emphasis on empowering socio-economically disadvantaged individuals. Given the recent economic pressures and rising auto prices, CACC's strategic focus on technological enhancements and maintaining dealer relationships positions it as a significant entity within the evolving subprime auto lending landscape.

Bull says

  • ↑Earnings yield of 1.05 highlights strong underlying cash flows.
  • ↑Positive analyst revisions signal upward earnings trajectory.
  • ↑AI-driven call center handles 5× more inbound calls, boosting efficiency.
  • ↑Loan portfolio reaches a record $9.1 B, showing demand resilience.
  • ↑Active dealer network expands to 10,977 partners, strengthening reach.
  • ↑High book-to-price ratio of 2.10 implies deep undervaluation.

Bear says

  • ↓Market share declined from 5.4% to 4.5% amid intensifying competition.
  • ↓Short interest remains elevated, indicating investor skepticism.
  • ↓Low profitability metrics raise concerns over margin sustainability.
  • ↓Inflation and rising auto prices pressure subprime affordability.
  • ↓Workforce reduction of ~6% risks dampening operational morale.
  • ↓Negative dividend yield deters income-focused investors.

Investment themes with CACC

Buybacks↑ +0.48%

Companies repurchasing their own shares

C · JCI · WFC

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-08-2026neutral

Transcript signals

Bull points

  • Thank you. We reported year-over-year growth in earnings for the first quarter with gap net income of $135.8 million, or $12.40 per diluted share, and adjusted net income of $117.3 million, or $10.71 per diluted share.
  • As Vinayak mentioned, this was the lowest quarterly decline we've seen in the past three years.
  • Loan volume declines continue to moderate this quarter, with unit volume declining 4.3% this quarter versus a decline of 9.1% last quarter.

Bear points

  • The average unit volume per active dealer declined 6.5% year-over-year.
  • The average unit volume per active dealer declined 6.5% year-over-year.
  • forecasted net cash flows from our loan portfolio declined modestly by $9.1 million or 0.1%, which was the smallest quarterly change we have seen in the past three years.
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