| 2018 (projected) | Credit Acceptance Current Assets | 395,800,000 | Credit Acceptance Total Assets | 1,235,580,700 |
Will Credit Acceptance continue to go out of hand?
 | By Rifka Kats | Macroaxis Story |
This article is aimed at all current or potential Credit Acceptance investors. I will look into why albeit cyclical Credit Acceptance disturbance, the long term basic indicators of the company are still strong. The company chance of financial distress is now about 46.0 percent. We found thirty-six available fundamental indicators for Credit Acceptance Corporation which can be compared to its rivals. To make sure the equity is not overpriced, please confirm all Credit Acceptance fundamentals including its Shares Owned by Institutions, Price to Sales and the relationship between Shares Outstanding and Price to Earning . Given that Credit Acceptance has Number of Shares Shorted of 558.33 K, we suggest you validate Credit Acceptance Corporation prevailing market performance to make sure the company can sustain itself down the road. Use Credit Acceptance to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Credit Acceptance to be traded at $463.31 in 30 days.
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Reviewed by Michael Smolkin
The entity has beta of 0.93. Credit Acceptance returns are very sensitive to returns on the market. As market goes up or down, Credit Acceptance is expected to follow. This firm dividends can provide a clue to current valuation of the stock. Credit Acceptance is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. About 30.0% of the company shares are held by company insiders. The book value of Credit Acceptance was currently reported as 16.52. The company has Price/Earnings To Growth (PEG) ratio of 0.64. Credit Acceptance recorded earning per share (EPS) of 32.76. The entity had not issued any dividends in recent years. The firm had 2:1 split on 1994-12-21.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Credit Acceptance. Your research has to be compared to or analyzed against Credit Acceptance's peers to derive any actionable benefits. When done correctly, Credit Acceptance's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Credit Acceptance.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Credit Acceptance. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Credit Acceptance
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Credit Acceptance's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Credit Acceptance's Liquidity
Credit Acceptance financial leverage refers to using borrowed capital as a funding source to finance Credit Acceptance ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Credit Acceptance financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Credit Acceptance's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Credit Acceptance's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Credit Acceptance's total debt and its cash.
Credit Acceptance Gross Profit
Credit Acceptance Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Credit Acceptance previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Credit Acceptance Gross Profit growth over the last 10 years. Please check Credit Acceptance's gross profit and other fundamental indicators for more details.
Is Credit Acceptance valued correctly by the market?
Credit Acceptance reported previous year revenue of 1.16 B. Net Income was 631.7 M with profit before overhead, payroll, taxes, and interest of 1.05 B. Credit Acceptance price decrease over the last few months could raise concerns from investors as the firm closed today at a share price of 437.69 on 59684.000 in volume. The company executives were not very successful in positioning the firm components to exploit market volatility in September. However, diversifying your holdings with Credit Acceptance Corporation or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6775. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Credit Acceptance preserves 104.2 m of working capital. Credit Acceptance is trading at 441.25. This is 0.41 percent increase. Today highest was 444.84. Credit Acceptance Cash Flow Per Share is increasing over the last 5 years. Credit Acceptance Return on Average Equity is decreasing over the last 4 years. Furthermore, Credit Acceptance Invested Capital is somewhat stable at the moment.
On the whole, our analysis show that Credit Acceptance Responds to market. The company is fairly valued and projects chance of distress close to average for the next 2 years. Our present buy vs hold vs sell advice on the company is Strong Hold.
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