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Credit Acceptance Corp
Credit Acceptance Corp (CACC) is a publicly traded company listed on the NASDAQ stock exchange under the ticker symbol "CACC." Credit Acceptance Corp is a financial services company that specializes in providing financing programs to automobile dealers. Here are some key points to know about the company's financials, growth, and earnings:
* Revenue: In 2020, CACC reported total revenue of $1.44 billion, a 12.6% increase from the previous year. The company's revenue has consistently grown over the past few years, driven by an increase in the number of vehicles financed and higher finance charges.
* Net Income: CACC's net income for 2020 was $314.7 million, a 10.3% decrease from the previous year. The decrease was primarily due to an increase in provision for credit losses and interest expense.
* Earnings Per Share (EPS): CACC's EPS for 2020 was $9.34, a 14.2% decrease from the previous year.
* Growth: CACC has consistently grown its revenue and earnings over the past few years, driven by its strong market position, diverse dealer network, and expanding product offerings.
* Financial Performance: CACC has a strong track record of financial performance, with a return on equity (ROE) of 16.8% and a return on assets (ROA) of 2.5% in 2020. Its profitability has been driven by its ability to originate and purchase high-quality retail installment contracts from dealers at competitive prices.
* Competition: CACC operates in the competitive automobile finance industry, competing with other financing companies such as Ally Financial Inc. (ALLY) and Santander Consumer USA Holdings Inc. (SC).
* Market Performance: CACC's stock price has fluctuated over the past year, influenced by factors such as the COVID-19 pandemic and changes in interest rates. As of March 2023, CACC's stock price is around $480 per share, with a market capitalization of around $7.4 billion.
* Valuation: CACC is trading at a price-to-earnings (P/E) ratio of around 11.5, relatively lower than its five-year average P/E ratio of 16.6. This could indicate that the market expects lower growth in the company's earnings in the near future.
Credit Acceptance Corp has consistently delivered strong financial performance and grown its revenue and earnings over the years. However, the company operates in a competitive industry, and its market performance has been influenced by broader economic factors. As always, it's essential to conduct thorough research and consider multiple factors before making investment decisions.