Credit Acceptance Corp (CACC) Stock Analysis
Verdict: WATCH (do not buy)
Extreme insider selling and a 4-quarter earnings miss streak signal that current price levels are unsustainable despite strong FCF yield.
Investment score: 42/100
Analysis as of
Is Credit Acceptance Corp stock worth reviewing? AI model thesis
The AI model views CACC as overextended. Negative insider sentiment (31 sells, 0 buys) and a consistent trend of earnings disappointments make a continuation of the recent 17% rally unlikely. While FCF yield is attractive at 18.4%, the 'liquidity trap' risk from a 0.025 current ratio is too high for a standard allocation.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Credit Acceptance Corp opportunities and risks
What speaks for CACC
- High Free Cash Flow Yield
What speaks against CACC
- Systemic Earnings Underperformance
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CACC | 13.0x | 2.5x | 14.5x | 80.3% | 19.6% | 18.4% |
| SOFI | 34.6x | 3.9x | 20.4x | 76.0% | 11.2% | -12.6% |
| ALLY | 9.5x | 0.8x | 9.1x | 48.9% | 8.9% | 0.1% |
| FCFS | 28.2x | 2.6x | 12.0x | 49.7% | 9.1% | 5.1% |
| FIGR | 41.6x | 10.1x | 23.4x | 90.0% | 29.0% | -60.0% |
| OMF | 7.9x | 1.0x | 17.0x | 55.2% | 12.6% | 51.6% |
| Peer median | 28.2x | 2.6x | 17.0x | 55.2% | 11.2% | 0.1% |
Frequently asked questions about Credit Acceptance Corp (CACC)
Is CACC stock a good investment?
The cached TradeMates AI model rates Credit Acceptance Corp as WATCH (do not buy) with an investment score of 42/100. The AI model views CACC as overextended. Negative insider sentiment (31 sells, 0 buys) and a consistent trend of earnings disappointments make a continuation of the recent 17% rally unlikely. While FCF yield is attractive at 18.4%, the 'liquidity trap' risk from a 0.025 current ratio is too high for a standard allocation. This is algorithmic model output, not personal investment advice.
Is CACC stock a buy?
The TradeMates model verdict for CACC is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.