Key statistics

Is CACC a good stock to buy in 2026?

Credit Acceptance Corporation (CACC) stock presents a mixed picture for investors in 2026. Its P/E ratio of 12.38x is significantly lower than the Financial – Credit Services sector average of 18.5x, suggesting potential undervaluation based on earnings multiples. Furthermore, our discounted cash flow (DCF) model indicates a fair value of $624.38, representing a substantial 19.5% upside from the current price, yet analyst ratings show a 0.0% buy consensus. This information is for analytical purposes only and not investment advice.

2026 CACC price scenarios

Based on analyst consensus of $540 from 18 analysts. Not a prediction by Alert Invest.

About Credit Acceptance Corporation (CACC)

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.

Under the leadership of CEO Vinayak R., Credit Acceptance Corporation, with its approximately 2,431 dedicated employees, continues to specialize in providing financing programs for consumers with limited access to traditional credit. The company’s distinctive strength lies in its proprietary underwriting and collection processes, which allow it to serve a niche market effectively while maintaining impressive gross margins of 80.31%. This focus enables CACC to navigate market challenges and sustain its business model in a competitive financial landscape.

CACC competitive moat and business analysis

Credit Acceptance Corporation maintains a significant competitive advantage through its specialized lending model focusing on subprime auto loans. While traditional metrics like ROE are not available, the company boasts an excellent net margin of 19.61% and an EBITDA margin of 36.05%, reflecting its robust operational efficiency and strong pricing power within its target market. This ability to extract substantial profit from its revenue streams highlights a well-managed cost structure and effective risk assessment for its unique client base.

Currently, specific segment or geographic revenue breakdowns for Credit Acceptance Corporation are not explicitly provided in the available data. However, the company’s business model centers on offering financing programs to independent and franchised automobile dealers exclusively within the United States, indicating a focused domestic market strategy rather than diversified international operations or distinct product lines beyond auto finance.

The moat around CACC stock appears stable, supported by its consistent revenue growth of 8.6% year-over-year. Although a transcript quote is not available, this steady growth in revenue, coupled with high margins, suggests that the company is effectively retaining its market position and continues to find opportunities within its specialized subprime auto lending segment. The resilience of its business model in a potentially volatile sector contributes to its long-term viability.

When considering CACC stock relative to its peers, a broader perspective on the Financial Services industry is essential. Comparing Credit Acceptance Corporation against other financial players such as CACC vs ABCB, CACC vs AVAL, or CACC vs HOMB provides insight into its market positioning and financial metrics. While CACC specializes in subprime auto loans, these comparisons can highlight differences in balance sheet strength, growth trajectories, and valuation multiples across diverse financial sub-sectors.

Credit Acceptance Corporation analyst rating

Based on 18 analysts. 0.0% rate CACC Buy or Strong Buy.

A 0.0% analyst buy rating for CACC stock is notably low, especially for a company in the Financial Services sector where diversified opinions are common. This consensus suggests that analysts currently perceive limited near-term upside or significant risks, prompting a collective “Hold” or “Sell” stance rather than strong conviction for buying CACC.

Is CACC undervalued or overvalued?

When assessing CACC valuation, its P/E ratio of 12.38x stands out significantly against the Financial – Credit Services sector average of 18.5x. This considerable discount suggests that CACC stock may be undervalued based on its earnings, trading at a lower multiple than its industry counterparts. Value investors often look for such discrepancies, which could indicate a buying opportunity if underlying fundamentals are strong.

Further reinforcing this perspective, our Discounted Cash Flow (DCF) analysis calculates a fair value of $624.38 for CACC, implying a substantial 19.5% upside from its current trading price. This DCF valuation model suggests that the intrinsic value of the company’s future cash flows is higher than its current market capitalization. Considering both the P/E discount and the DCF model, CACC’s current price appears attractive relative to its fundamental value.

CACC financial health & key metrics

For value investors analyzing CACC stock, the financial metrics present a mixed but intriguing profile. While the debt-to-equity ratio of 4.23x is notably high, the company exhibits robust profitability with a net margin of 19.61% and a strong Free Cash Flow (FCF) yield of 19.25%. Moreover, the CACC valuation appears favorable, with a P/E ratio of 12.38x trading at a significant discount to the sector average of 18.5x, and a DCF fair value indicating a substantial upside. This combination of undervaluation and strong cash generation, despite high leverage, suggests that is CACC a good stock for investors tolerant of risk in pursuit of value.

Credit Acceptance Corporation earnings history & next report

Credit Acceptance Corporation reported EPS of $10.71, beating estimates by 0.94%. Next earnings: 2026-07-30 with EPS estimate of $11.85.

Investors will be closely watching Credit Acceptance Corporation’s next earnings report on 2026-07-30, with an estimated EPS of $11.85. Key areas to monitor include not just whether the company beats this estimate, but also management’s commentary on credit quality trends, loan origination volumes, and any changes in the competitive landscape or regulatory environment. Given the high debt-to-equity ratio, updates on liquidity and debt management strategies will also be crucial for CACC stock performance.

CACC daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

CACC insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent CACC analyst rating changes

Credit Acceptance Corporation stock news today

How does CACC compare to its peers?

Understanding Credit Acceptance Corporation’s position within the Financial – Credit Services sector often involves comparing its performance and business model against key competitors. While CACC has a unique focus on subprime auto lending, examining how it stacks up against other diversified financial institutions like ABCB, AVAL, and HOMB can offer valuable insights into its relative strengths and weaknesses, helping investors decide is CACC a good stock to complement their portfolio.

FAQ — Credit Acceptance Corporation (CACC) stock