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Is this Large Market Cap Stock target price reasonable for Credit Acceptance Corp. (NASDAQ:CACC)?

The company in question is, Credit Acceptance Corp. (NASDAQ:CACC) currently with a stock price of 188.38 (-1.61% today). The market cap for Credit Acceptance Corp. is 4003.43, and is in the sector Financial, and Credit Services industry. The target price for Credit Acceptance Corp. is 179.29. Currently Credit Acceptance Corp. is trading with a P/E of 12.66, and a forward P/E of 10.76. Average volume for Credit Acceptance Corp. is 219.11 and so far today it is 137971.

Performance in the last year for Credit Acceptance Corp. has been -9.41%. For EPS growth, Credit Acceptance Corp. has seen a growth of 19.80%, and is looking to grow in the next year to 11.05%. More long term stats show that EPS growth has been 20.30% over the last five years and could be 6.50% for the next five years. Credit Acceptance Corp. has seen sales growth quarter over quarter at 17.40%, with EPS growth quarter over quarter at 17.60%. The 20-day simple moving average is -4.75%, with the 200-day simple moving average coming to -0.89%.

Since the IPO date for Credit Acceptance Corp. on the 06/05/1992, Credit Acceptance Corp. has seen performance year to date to be -10.54%. With Credit Acceptance Corp. trading at 188.38, the dividend yield is *TBA, and the EPS is 15.13.

So could Credit Acceptance Corp., be undervalued? Well as said before P/E is 12.66. The PEG is 1.95, P/S is 4.48 and the P/B is at 3.62. The P/cash is 25.29, with P/free cash flow at 9.13.

Credit Acceptance Corp. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 2.35, and total debt/equity at 2.35.

In terms of margins, Credit Acceptance Corp. has a gross margin of *TBA, an operating margin of 65.40% and a profit margin of 35.00%.Payout ratio for Credit Acceptance Corp. is 0.00%. Return on assets come to 8.70% with return on investment coming to 12.50%.

Insider ownership for Credit Acceptance Corp., is at 19.30% and institutional ownership comes to 48.40%. Outstanding shares are at 20.91. While shares float is 11.28. The float short is currently 23.67%, and short ratio is 12.19.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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