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56

CACC

๐Ÿฆ Financial Services

Credit Acceptance Corporation

Conservative #455Aggressive #280Low RiskMLโ†‘ 16pt
$473.18-2.82%
Day High$485.79
Day Low$467.60
Volume0.2M
Mkt Cap$5.2B
52W Low $40252W High $550
Market Cap
$5.3B
P/E Ratio
13.3
Sector avg: 26.8
Rev Growth
7.2%
Sector avg: 13.4%
Earnings Growth
71.0%
Profit Margin
18.5%
Sector avg: -2.8%
Debt/Equity
4.17

Why This Score

CACC scores 56.3 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 27.8% exceeds the 15% quality threshold.
  • Attractively valued at 13.3x earnings, below the market average.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 5-point penalty for execution risk.
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Elevated leverage (D/E 4.17) increases financial risk in a rising-rate environment.

Moderate penalties (-7.8 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score56.3
Fundamental Score53.3
ML Score87.0

Score by Horizon

3 Month
62.9
6 Month
70.3
Primary
1 Year
74.0

Quality Assessment

B
Quality Grade
Good quality โ€” solid metrics, minor concerns possible
1 quality flag detected โ€” see details below. These penalties are already factored into the final score.
Quality Flags
Extreme leverage: D/E ratio of 4.2x โ€” balance sheet risk

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
34
Negative
Analyst (6.4%)
42
Neutral
Tradability (post-hoc)
53
Grade Clow volume, low float
Base
55.1
SHAP
+3.1
Factors
+0.9
Divergence
-2.8
Final
56.3
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

75AVG
Value85
Quality85
Growth90
Stability35
Investment80

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)54.0
Technical (Momentum, Weinstein, Volatility)60.0
External (Sentiment, Analyst, Macro)44.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
-0.6% to +3.7%
Medium-term
-0.2% to +6.3%
Long-term
+0.2% to +8.9%

ML Model Core Features100 trained inputs โ†’ ML Score: 87

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score41.7/100
Target Upside-0.9%
Coverage18 analysts
Market Sentiment
Sentiment Score34.4/100
News Volume1 articles
Technical Stage
Weinstein Stage4 โ€” Declining
12M Momentum-0.0%
6M Momentum-0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+4.3%
Momentum ConsistencyWeak (0.29)
Relative Strength vs Sector-10.6%
Trend Strength (ADX Proxy)Weak (0.3)
Momentum Quality-0.015
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
22%
Moderate โ€” watch growth
Sector RevGr Rank
P60
Revenue growth vs Financial Services peers
Sector PE Rank
P59
Valuation vs Financial Services peers
Sector FCF Rank
P91
Free cash flow vs Financial Services peers
Growth Deviation
+0.0ฯƒ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 53 relative to sector peers53/100
Machine learning ensemble ranks this stock at the 87th percentileP87
Blended score: 80% fundamental (53) + 20% ML (87) = 60.060.0
Risk assessment: low. Low vol 0.1%; Drawdown 14% โ†’ 0.0ptLow
Earnings quality grade B: adequate earnings quality with minor concerns. Score adjusted by 0 pointsGrade B
SHAP feature alignment: +3.1pt (features align with model priorities)SHAP
Divergence penalty: -2.8pt (ML 34pt higher)Divergence
Risk Factors
Quality concern: Extreme leverage: D/E ratio of 4.2x โ€” balance sheet riskFlag
Liquidity penalty: -5.0pt (grade C)Liquidity

Sector Peer Comparison(Financial Services โ€” Rank #146 of 356 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
CACC56.313.37.2%18.5%$5.3B
CME86.427.29.9%57.5%$114.0B
FHB84.911.83.2%24.2%$3.1B
ACT84.58.92.4%54.6%$6.1B
CINF84.210.711.4%18.9%$25.4B
SEIC82.214.010.7%27.3%$9.9B
TROW79.910.13.1%28.5%$20.5B
QQQX79.710.448.6%257.3%$1.4B
IBOC78.210.67.5%40.1%$4.2B
HWC77.812.2-1.5%24.1%$5.6B
FFIN77.518.811.7%30.7%$4.7B
TRMK77.111.934.8%19.3%$2.6B
NMIH77.17.78.4%55.1%$3.0B
EWBC76.712.74.6%28.3%$15.3B
WSFS76.312.8-3.1%21.1%$3.5B
MCHB76.1N/A123.7%23.2%$3.1B
Sector Average47.526.813.4%-2.8%โ€”

Company Overviewvia FMP

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.

CEO
Vinayak R.
Employees
2,431
Beta
1.28
Industry
Financial - Credit Services
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
35.6
Neutral
Trend
Bullish
10-day vs 50-day MA
From 52W High
-13.9%
High: $549.75
From 52W Low
+17.7%
Low: $401.9
Moving Averages
10-Day
$490.20
Below
20-Day
$496.30
Below
50-Day
$472.50
Above
200-Day
$482.90
Below
60-Day Support
$431.71
60-Day Resistance
$517.8
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 โ€” DecliningScore: 26/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-2%
200 SMA Slope (60d)
-1.12%
Flattening
Volume Ratio
1.29x
10d avg vs 50d avg
Days in Stage
1
Confidence: 90%

Entry & Exit Zones

Avoid
No Entry
โ€”
No entry โ€” active downtrend
Exit Target
โ€”
Exit position if held
Stop Level
โ€”
No stop โ€” exit recommended

Stage 4 downtrend โ€” price is below both SMA50 and SMA200 with a declining 200-day average. Capital preservation takes priority. Do not buy into a downtrend.

Technical zones only โ€” derived from moving averages and price structure. Not financial advice. Past technical patterns do not guarantee future performance.

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$580M$576M$576M$562M
Gross Profit$573M$356M$354M$343M
Operating Income$307M$143M$110M$134M
Net Income$122M$108M$87M$106M
EPS (Diluted)$10.99$9.43$7.42$8.66
Gross Margin98.8%61.8%61.5%61.0%
Operating Margin52.9%24.8%19.0%23.8%
Net Margin21.0%18.8%15.2%18.9%

Why This Stock

Financial ServicesP/E ratio of 13.3Profit margin 18.5%

Tradability FilterGrade C โ€” 53/100Score impact: -3.7pt

Volume
33
149K avg/day
Dollar Vol
100
$73M/day
Float
3
6M shares
Mkt Cap
69
$5.3B
Range
67
37% spread
Composite Liquidity Score53/100
FDCBA
low volumelow float

Multi-Year Range Analysis

Sideways: 11/100
YearLowHighRangeStatus
2021$346.49$703.2768%Wide
2022$397.58$699.0855%Wide
2023$358.00$576.0546.7%Wide
2024$409.22$616.6640.4%Wide
2025$401.90$560.0032.9%Moderate
3-Year Range
53.1%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
54.1%
Outstanding Shares
11M
Bid-Ask Spread
37.0%
Institutional Tradable
Limited

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.