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Credit Acceptance

DB:2D5
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2D5
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
  • Credit Acceptance has significant price volatility in the past 3 months.
2D5 Share Price and Events
7 Day Returns
18.7%
DB:2D5
6%
Europe Consumer Finance
7.3%
DE Market
1 Year Returns
-36.9%
DB:2D5
-48.3%
Europe Consumer Finance
-17.7%
DE Market
2D5 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Credit Acceptance (2D5) 18.7% -29.1% -34.5% -36.9% - -
Europe Consumer Finance 6% -34.5% -40.3% -48.3% -64.4% -63.3%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • 2D5 outperformed the Consumer Finance industry which returned -48.3% over the past year.
  • 2D5 underperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
2D5
Industry
5yr Volatility vs Market

2D5 Value

 Is Credit Acceptance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Credit Acceptance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Credit Acceptance.

DB:2D5 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $168.37 * 17%
$28.67
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $168.37
Discount Rate (Cost of Equity) See below 5.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:2D5
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 21%) (92.13%))
1.008
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.008 * 5.44%)
5.09%

Discounted Cash Flow Calculation for DB:2D5 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Credit Acceptance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:2D5 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (17% – 5.09%) * $168.37)
$20.10
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $20.10 / (5.09% - -0.39%)
$366.61
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $168.37 + $366.61
$534.98
DB:2D5 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:2D5 represents 0.94291x of NasdaqGS:CACC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.94291x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 534.98 x 0.94291
€504.43
Value per share (EUR) From above. €504.43
Current discount Discount to share price of €254.00
= -1 x (€254.00 - €504.43) / €504.43
49.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Credit Acceptance is available for.
Intrinsic value
50%
Share price is €254 vs Future cash flow value of €504.43
Current Discount Checks
For Credit Acceptance to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Credit Acceptance's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Credit Acceptance's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Credit Acceptance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Credit Acceptance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:2D5 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $34.71
NasdaqGS:CACC Share Price ** NasdaqGS (2020-03-30) in USD $269.38
Europe Consumer Finance Industry PE Ratio Median Figure of 27 Publicly-Listed Consumer Finance Companies 5.55x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Credit Acceptance.

DB:2D5 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CACC Share Price ÷ EPS (both in USD)

= 269.38 ÷ 34.71

7.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Credit Acceptance is overvalued based on earnings compared to the Europe Consumer Finance industry average.
  • Credit Acceptance is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Credit Acceptance's expected growth come at a high price?
Raw Data
DB:2D5 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-0.6%per year
Europe Consumer Finance Industry PEG Ratio Median Figure of 19 Publicly-Listed Consumer Finance Companies 0.41x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:2D5 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.76x ÷ -0.6%

-13.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Credit Acceptance earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Credit Acceptance's assets?
Raw Data
DB:2D5 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $127.31
NasdaqGS:CACC Share Price * NasdaqGS (2020-03-30) in USD $269.38
Europe Consumer Finance Industry PB Ratio Median Figure of 42 Publicly-Listed Consumer Finance Companies 0.71x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:2D5 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CACC Share Price ÷ Book Value per Share (both in USD)

= 269.38 ÷ 127.31

2.12x

* Primary Listing of Credit Acceptance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Credit Acceptance is overvalued based on assets compared to the Europe Consumer Finance industry average.
X
Value checks
We assess Credit Acceptance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Credit Acceptance has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2D5 Future Performance

 How is Credit Acceptance expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Credit Acceptance expected to grow at an attractive rate?
  • Credit Acceptance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Credit Acceptance's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Credit Acceptance's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:2D5 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:2D5 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -0.6%
DB:2D5 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 16%
Europe Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:2D5 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:2D5 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,350 765 1
2022-12-31 2,187 680 1
2021-12-31 1,883 500 5
2020-12-31 1,744 400 6
2020-03-30
DB:2D5 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,216 812 656
2019-09-30 1,192 811 646
2019-06-30 1,159 795 632
2019-03-31 1,129 726 618
2018-12-31 1,072 704 574
2018-09-30 983 652 599
2018-06-30 934 615 549
2018-03-31 884 612 497
2017-12-31 861 566 470
2017-09-30 869 558 381
2017-06-30 840 540 366
2017-03-31 812 577 352

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Credit Acceptance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Credit Acceptance's revenue is expected to grow by 16% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:2D5 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Credit Acceptance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2D5 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 40.06 40.06 40.06 1.00
2022-12-31 35.75 35.75 35.75 1.00
2021-12-31 26.94 29.34 24.46 6.00
2020-12-31 21.46 24.60 15.62 7.00
2020-03-30
DB:2D5 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 34.71
2019-09-30 33.89
2019-06-30 32.91
2019-03-31 31.99
2018-12-31 29.52
2018-09-30 30.82
2018-06-30 28.25
2018-03-31 25.58
2017-12-31 24.12
2017-09-30 19.35
2017-06-30 18.37
2017-03-31 17.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Credit Acceptance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Credit Acceptance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Credit Acceptance has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2D5 Past Performance

  How has Credit Acceptance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Credit Acceptance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Credit Acceptance has delivered over 20% year on year earnings growth in the past 5 years.
  • Credit Acceptance's 1-year earnings growth is less than its 5-year average (14.3% vs 20.5%)
  • Credit Acceptance's earnings growth has not exceeded the Europe Consumer Finance industry average in the past year (14.3% vs 17.9%).
Earnings and Revenue History
Credit Acceptance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Credit Acceptance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2D5 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,216.40 656.10 328.60
2019-09-30 1,191.50 646.10 320.20
2019-06-30 1,159.40 631.70 310.00
2019-03-31 1,128.90 618.30 297.80
2018-12-31 1,072.30 574.00 291.20
2018-09-30 983.30 599.20 282.20
2018-06-30 934.10 548.90 272.80
2018-03-31 883.50 497.00 264.30
2017-12-31 860.50 470.20 254.00
2017-09-30 869.30 380.70 243.10
2017-06-30 840.30 365.90 236.60
2017-03-31 812.30 351.70 230.10
2016-12-31 781.30 332.80 224.10
2016-09-30 761.70 325.20 218.80
2016-06-30 739.60 313.30 213.50
2016-03-31 718.40 302.60 207.40
2015-12-31 707.80 299.70 200.10
2015-09-30 696.60 292.70 196.80
2015-06-30 684.10 292.70 185.90
2015-03-31 670.90 287.90 179.10
2014-12-31 654.00 266.20 171.30
2014-09-30 636.20 259.10 164.70
2014-06-30 622.60 250.20 162.60
2014-03-31 608.50 242.30 160.80
2013-12-31 595.20 253.10 156.20
2013-09-30 578.00 247.10 153.40
2013-06-30 557.10 234.90 152.80
2013-03-31 542.70 230.00 148.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Credit Acceptance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Credit Acceptance used its assets more efficiently than the Europe Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Credit Acceptance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Credit Acceptance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Credit Acceptance has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2D5 Health

 How is Credit Acceptance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Credit Acceptance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Credit Acceptance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Credit Acceptance's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Credit Acceptance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Credit Acceptance Company Filings, last reported 2 months ago.

DB:2D5 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,355.30 4,538.80 187.40
2019-09-30 2,382.80 4,232.20 24.70
2019-06-30 2,215.30 4,222.60 19.70
2019-03-31 2,048.90 4,231.30 41.30
2018-12-31 1,990.90 3,820.90 25.70
2018-09-30 1,963.30 3,876.90 195.70
2018-06-30 1,809.60 3,665.80 55.70
2018-03-31 1,656.70 3,446.40 11.50
2017-12-31 1,535.80 3,070.80 8.20
2017-09-30 1,351.80 3,000.80 4.90
2017-06-30 1,248.20 3,014.40 27.20
2017-03-31 1,163.80 2,905.30 11.10
2016-12-31 1,173.70 2,603.70 14.60
2016-09-30 1,165.70 2,510.40 5.70
2016-06-30 1,078.10 2,538.30 158.30
2016-03-31 991.40 2,328.30 9.10
2015-12-31 928.10 2,067.80 6.30
2015-09-30 931.30 2,081.20 134.70
2015-06-30 853.90 1,918.00 1.30
2015-03-31 777.30 1,983.50 86.70
2014-12-31 702.20 1,752.50 6.40
2014-09-30 748.50 1,660.10 4.30
2014-06-30 672.80 1,654.70 6.70
2014-03-31 715.00 1,558.20 5.60
2013-12-31 750.10 1,392.40 4.20
2013-09-30 689.80 1,434.00 3.60
2013-06-30 653.90 1,407.20 9.00
2013-03-31 624.60 1,356.00 7.80
  • Credit Acceptance's level of debt (192.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (249.6% vs 192.7% today).
  • Debt is not well covered by operating cash flow (17.9%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Credit Acceptance's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Credit Acceptance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Credit Acceptance has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2D5 Dividends

 What is Credit Acceptance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Credit Acceptance dividends. Estimated to be 0% next year.
If you bought €2,000 of Credit Acceptance shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Credit Acceptance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Credit Acceptance's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:2D5 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:2D5 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2020-03-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Credit Acceptance has not reported any payouts.
  • Unable to verify if Credit Acceptance's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Credit Acceptance's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Credit Acceptance has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Credit Acceptance's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Credit Acceptance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Credit Acceptance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Credit Acceptance has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2D5 Management

 What is the CEO of Credit Acceptance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brett Roberts
COMPENSATION $1,036,100
AGE 53
TENURE AS CEO 18.2 years
CEO Bio

Mr. Brett A. Roberts has been the Chief Executive Officer of Credit Acceptance Corp. since January 2002. Mr. Roberts served as the President of Credit Acceptance Corp. from August 24, 2006 to April 2, 2007 and served as its Chief Financial Officer and Treasurer since August 1995. He served as an Executive Vice President since January 1997, Co-President since January 2000, Executive Vice President for Finance and Operations since October 2000 and Chief Operating Officer since January 2001. He joined Credit Acceptance Corporation in 1991 as Corporate Controller and served as an Assistant Treasurer since March 1992 and Vice President for Finance since April 1993. Mr. Roberts has been an Executive Director of Credit Acceptance Corp. since March 2002.

CEO Compensation
  • Brett's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brett's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Credit Acceptance management team in years:

6.6
Average Tenure
50.5
Average Age
  • The average tenure for the Credit Acceptance management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brett Roberts

TITLE
CEO & Director
COMPENSATION
$1M
AGE
53
TENURE
18.2 yrs

Kenneth Booth

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
52
TENURE
15.3 yrs

Charles Pearce

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$1M
AGE
55
TENURE
15.3 yrs

Daniel Ulatowski

TITLE
Chief Sales Officer
COMPENSATION
$1M
AGE
47
TENURE
6.2 yrs

Arthur Smith

TITLE
Chief Analytics Officer
COMPENSATION
$1M
AGE
46
TENURE
6.6 yrs

Jonathan Lum

TITLE
Chief Operating Officer
AGE
43
TENURE
0.8 yrs

Noah Kotch

TITLE
Chief Information Officer
AGE
49
TENURE
0.8 yrs

Doug Busk

TITLE
Senior VP & Treasurer
AGE
59
Board of Directors Tenure

Average tenure and age of the Credit Acceptance board of directors in years:

14.5
Average Tenure
56.5
Average Age
  • The average tenure for the Credit Acceptance board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Brett Roberts

TITLE
CEO & Director
COMPENSATION
$1M
AGE
53
TENURE
18 yrs

Tom Tryforos

TITLE
Lead Director
COMPENSATION
$20K
AGE
60
TENURE
3.2 yrs

Glenda Flanagan

TITLE
Independent Director
COMPENSATION
$50K
AGE
65
TENURE
16 yrs

Scott Vassalluzzo

TITLE
Independent Director
AGE
47
TENURE
13 yrs
Who owns this company?
Recent Insider Trading
  • Credit Acceptance individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Mar 20 Sell Donald Foss Individual 24. Mar 20 26. Mar 20 -30,666 €279.99 €-7,622,744
25. Mar 20 Buy Kenneth Booth Individual 23. Mar 20 23. Mar 20 1,000 €200.19 €200,187
13. Dec 19 Sell Prescott General Partners Llc Company 03. Dec 19 03. Dec 19 -300 €387.73 €-116,319
23. Mar 20 Sell Donald Foss Individual 19. Mar 20 19. Mar 20 -10,000 €271.82 €-2,718,244
19. Mar 20 Buy Kenneth Booth Individual 17. Mar 20 18. Mar 20 3,000 €301.30 €824,076
12. Mar 20 Sell Prescott General Partners Llc Company 10. Mar 20 11. Mar 20 -13,440 €383.30 €-5,146,238
12. Mar 20 Sell Prescott Investors Profit Sharing Trust Company 10. Mar 20 11. Mar 20 -560 €383.30 €-214,427
12. Mar 20 Sell Donald Foss Individual 10. Mar 20 11. Mar 20 -11,119 €387.11 €-4,303,440
10. Mar 20 Sell Prescott General Partners Llc Company 06. Mar 20 06. Mar 20 -2,400 €380.27 €-912,657
10. Mar 20 Sell Prescott Investors Profit Sharing Trust Company 06. Mar 20 06. Mar 20 -100 €380.27 €-38,027
06. Mar 20 Sell Prescott General Partners Llc Company 04. Mar 20 05. Mar 20 -12,576 €384.96 €-4,831,789
06. Mar 20 Sell Prescott Investors Profit Sharing Trust Company 04. Mar 20 05. Mar 20 -524 €384.96 €-201,325
06. Mar 20 Sell Donald Foss Individual 04. Mar 20 06. Mar 20 -10,200 €382.15 €-3,893,365
06. Mar 20 Sell Noah Kotch Individual 04. Mar 20 04. Mar 20 -3,619 €386.50 €-1,398,760
03. Mar 20 Sell Donald Foss Individual 28. Feb 20 03. Mar 20 -20,000 €375.62 €-7,357,715
02. Mar 20 Buy Kenneth Booth Individual 27. Feb 20 02. Mar 20 1,700 €359.47 €607,235
26. Feb 20 Sell Prescott General Partners Llc Company 24. Feb 20 25. Feb 20 -2,784 €393.87 €-1,096,118
26. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 24. Feb 20 25. Feb 20 -116 €393.87 €-45,672
24. Feb 20 Sell Prescott General Partners Llc Company 20. Feb 20 21. Feb 20 -11,712 €400.88 €-4,688,718
24. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 20. Feb 20 21. Feb 20 -488 €400.88 €-195,363
20. Feb 20 Sell Prescott General Partners Llc Company 18. Feb 20 19. Feb 20 -18,432 €403.84 €-7,434,209
20. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 18. Feb 20 19. Feb 20 -768 €403.84 €-309,759
18. Feb 20 Sell Prescott General Partners Llc Company 13. Feb 20 14. Feb 20 -19,200 €402.43 €-7,711,151
18. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 13. Feb 20 14. Feb 20 -800 €402.43 €-321,298
13. Feb 20 Sell Prescott General Partners Llc Company 11. Feb 20 12. Feb 20 -14,400 €399.44 €-5,732,979
13. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 11. Feb 20 12. Feb 20 -600 €399.44 €-238,874
11. Feb 20 Sell Prescott General Partners Llc Company 07. Feb 20 10. Feb 20 -15,072 €409.99 €-6,136,693
11. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 07. Feb 20 10. Feb 20 -628 €409.99 €-255,696
11. Feb 20 Sell Douglas Busk Individual 10. Feb 20 10. Feb 20 -1,500 €405.94 €-608,798
11. Feb 20 Sell Charles Pearce Individual 10. Feb 20 10. Feb 20 -1,400 €409.09 €-572,729
11. Feb 20 Sell Glenda Flanagan Individual 07. Feb 20 07. Feb 20 -3,125 €410.42 €-1,277,863
07. Feb 20 Sell Prescott General Partners Llc Company 05. Feb 20 06. Feb 20 -22,970 €405.77 €-9,230,053
07. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 05. Feb 20 06. Feb 20 -957 €405.77 €-384,552
05. Feb 20 Sell Prescott General Partners Llc Company 03. Feb 20 04. Feb 20 -16,040 €393.46 €-6,308,747
05. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 03. Feb 20 04. Feb 20 -668 €393.46 €-262,733
03. Feb 20 Sell Prescott General Partners Llc Company 30. Jan 20 31. Jan 20 -19,200 €418.00 €-7,865,307
03. Feb 20 Sell Prescott Investors Profit Sharing Trust Company 30. Jan 20 31. Jan 20 -800 €418.00 €-327,721
28. Jan 20 Sell Prescott General Partners Llc Company 24. Jan 20 24. Jan 20 -14,400 €415.72 €-5,986,354
28. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 24. Jan 20 24. Jan 20 -600 €415.72 €-249,431
30. Jan 20 Sell Prescott General Partners Llc Company 28. Jan 20 29. Jan 20 -21,216 €418.94 €-8,876,401
30. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 28. Jan 20 29. Jan 20 -884 €418.94 €-369,850
28. Jan 20 Sell Prescott General Partners Llc Company 27. Jan 20 27. Jan 20 -14,400 €412.32 €-5,937,344
28. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 27. Jan 20 27. Jan 20 -600 €412.32 €-247,389
23. Jan 20 Sell Prescott General Partners Llc Company 21. Jan 20 23. Jan 20 -43,200 €415.08 €-17,811,172
23. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 21. Jan 20 23. Jan 20 -1,800 €415.08 €-742,132
23. Jan 20 Sell Prescott General Partners Llc Company 15. Jan 20 17. Jan 20 -35,520 €405.74 €-14,351,735
17. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 15. Jan 20 17. Jan 20 -1,480 €405.74 €-597,989
14. Jan 20 Sell Prescott General Partners Llc Company 13. Jan 20 13. Jan 20 -5,900 €394.14 €-2,325,453
14. Jan 20 Sell Prescott General Partners Llc Company 10. Jan 20 14. Jan 20 -22,900 €399.62 €-9,048,375
14. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 13. Jan 20 13. Jan 20 -400 €394.14 €-157,658
14. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 10. Jan 20 14. Jan 20 -800 €399.62 €-316,150
06. Jan 20 Sell Prescott General Partners Llc Company 03. Jan 20 03. Jan 20 -3,500 €395.25 €-1,383,367
06. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 03. Jan 20 03. Jan 20 -400 €395.25 €-158,099
10. Jan 20 Sell Prescott General Partners Llc Company 08. Jan 20 09. Jan 20 -14,016 €391.65 €-5,484,307
10. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 08. Jan 20 09. Jan 20 -584 €391.65 €-228,513
08. Jan 20 Sell Prescott General Partners Llc Company 06. Jan 20 07. Jan 20 -14,784 €390.21 €-5,754,337
08. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 06. Jan 20 07. Jan 20 -616 €390.21 €-239,764
06. Jan 20 Sell Prescott General Partners Llc Company 02. Jan 20 03. Jan 20 -15,700 €395.25 €-6,163,495
06. Jan 20 Sell Prescott Investors Profit Sharing Trust Company 03. Jan 20 03. Jan 20 -400 €390.88 €-156,354
17. Dec 19 Sell Charles Pearce Individual 16. Dec 19 16. Dec 19 -1,000 €397.08 €-397,081
12. Nov 19 Sell Brett Roberts Individual 08. Nov 19 08. Nov 19 -9,937 €389.40 €-3,856,314
07. Nov 19 Buy Kenneth Booth Individual 05. Nov 19 05. Nov 19 1,250 €371.07 €463,681
X
Management checks
We assess Credit Acceptance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Credit Acceptance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2D5 News

Simply Wall St News

2D5 Company Info

Description

Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. The company advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company was founded in 1972 and is headquartered in Southfield, Michigan.

Details
Name: Credit Acceptance Corporation
2D5
Exchange: DB
Founded: 1972
$4,467,954,908
18,298,839
Website: http://www.creditacceptance.com
Address: Credit Acceptance Corporation
25505 West Twelve Mile Road,
Southfield,
Michigan, 48034-8339,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CACC Common Stock Nasdaq Global Select US USD 05. Jun 1992
DB 2D5 Common Stock Deutsche Boerse AG DE EUR 05. Jun 1992
BOVESPA CRDA34 BDR EACH 1 REP 0.1 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
2,016
Credit Acceptance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 23:55
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/02/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.