CluenexCredit Acceptance CACC
Credit Acceptance scores good on business quality (7.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Credit Acceptance does
Credit Acceptance advances auto loans to consumers with subprime credit profiles through a dealer-partner network, collecting fees and loan payments. The company is leaning into dealer relationships and portfolio optimization to sustain cash generation against competitive credit pressures.
- What it does best
Credit Acceptance converts subprime auto loans into exceptional returns, posting a return on equity of 32.4% that outpaces peers like SOFI at 6.2%. This performance stems from its unique dealer-partner program, which shares credit risk and collection proceeds directly with auto dealerships.
- The main risk
With total debt at $6.4 billion and interest coverage at 2.6x, rising borrowing costs directly threaten net interest margins. If credit defaults accelerate faster than expected, earnings take an immediate hit.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 49.2% and ROE reaches 32.4%, both expanding as the business leverages its unique dealer model. This structure makes the company highly profitable at scale.
The company relies on a deeply integrated dealer network that locks in auto retailers through profit-sharing arrangements. Its operating margin ranks in the top decile of its sector at 49.2%, reflecting a durable underwriting advantage.
Revenue grew at 7.2% to $2.3 billion, showing moderate acceleration compared to past annual summaries. The portfolio expansion is middling relative to sector peers.
Total debt sits at $6.4 billion against just $23 million in cash, backed by an interest coverage ratio of 2.6x. Free cash flow reached $1.2 billion, supported by $512 million in share buybacks.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on CACC
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Credit Acceptance scores good on the Cluenex quality check (7.3 of 10), measured against its own industry. Profitability is strong, moat fair, growth steady and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 2, 2026, after the close.
See CACC today
- Today's verdict on CACC, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Credit Acceptance (CACC)”, https://cluenex.com/stocks/cacc/, data as of Oct 10, 2026.