Main sector: Automobile financing
Top 3 markets:

1. USA: approx. 95%
2. Canada: approx. 3%
3. Other markets: approx. 2%

Credit Acceptance Corporation generates the majority of its revenues from the automobile financing sector, particularly by providing loans for the purchase of used cars. The US market dominates the company's revenues as it is where its main business operations are located. Canada and other international markets contribute only a small portion to the total revenues. The focus on the US market is typical for companies in this industry specializing in subprime auto loans.

Production: No physical production

Credit Acceptance Corporation (NasdaqGS:CACC) is a financial services company specializing in providing auto loans. The company does not produce physical products, but offers financial solutions and services. Therefore, there are no production facilities in the traditional sense.

The company's main activities include financing car purchases through partnerships with car dealers in the USA.

Revenue Growth: Estimated 8-10% annually (2025) Profit Margin: Stable at around 20% (2025)

Credit Acceptance Corporation is pursuing a growth strategy based on expanding its dealer network and improving its credit underwriting models. The company is increasingly leveraging technology to enhance the efficiency of credit assessment and improve the customer experience.

Another focus is on diversifying financial products to tap into new customer segments. By utilizing data analytics and AI technologies, the company aims to better manage risk and optimize repayment rates.

In addition, Credit Acceptance Corporation plans to increase its presence in underserved markets to capitalize on growth opportunities in these regions. This will be achieved through targeted marketing strategies and partnerships with local dealers.

Current data on commodity imports: Not specifically available for 2025.

Credit Acceptance Corporation is a financial services company specializing in providing auto loans. As it is not a manufacturing company, it does not import physical commodities or materials.

The business model of Credit Acceptance Corporation is based on financing and managing auto loans, not on the production or trade of physical goods. Therefore, information on commodity imports is not relevant for this company.

Market share: Approximately 5% in the subprime auto loan market (estimated for 2025)
Return on equity (ROE): 28% (2024)
Net interest margin: 7.5% (2024)

Credit Acceptance Corporation has a significant competitive advantage in the subprime auto loan market, supported by its specialized expertise and long-standing experience in this sector. The market share of about 5% indicates that the company holds a solid position in a fragmented market.

The high return on equity of 28% suggests efficient capital utilization, which is a sign of strong operational capabilities and an effective risk management strategy. The net interest margin of 7.5% shows that the company is able to conduct profitable credit transactions, even in a challenging interest rate environment.

In addition, Credit Acceptance benefits from a robust technological platform that enables efficient credit decisions and better risk assessment. This further strengthens its competitive position and allows the company to remain stable even in economically challenging times.

Institutional Investor Share: approx. 70% (estimated for 2025 based on historical data)

Insider Buys/Sells: No specific current data available, but historically regular transactions.

The institutional investor share at Credit Acceptance Corporation typically stands at around 70%, indicating a strong trust from institutional investors in the company. These investors include large investment funds, pension funds, and other institutional entities that often pursue long-term investment strategies.

Insider transactions, such as purchases and sales of stocks by executives and directors, are regularly conducted to address liquidity needs or portfolio strategies. Such transactions can also be seen as an indicator of management's confidence in the company's future development. However, it is important to analyze the exact circumstances and frequency of these transactions to draw informed conclusions.

Market share of Credit Acceptance Corporation: Estimated around 5-7% (2025)

Top competitors and their market shares:

1. Ally Financial Inc.: around 15%
2. Santander Consumer USA Holdings Inc.: around 12%
3. Capital One Financial Corporation: around 10%
4. Ford Motor Credit Company: around 8%
5. Credit Acceptance Corporation: around 5-7%
6. American Honda Finance Corporation: around 5%
7. Toyota Financial Services: around 4%
8. Nissan Motor Acceptance Corporation: around 3%
9. GM Financial: around 3%
10. Hyundai Capital America: around 2%

Economic moat of Credit Acceptance Corporation:

Credit Acceptance Corporation has a certain economic moat due to its specialized focus on subprime auto financing and its long-standing experience in this segment. Their business model is based on collaborating with car dealers to enable loans for customers with low credit scores. This creates a niche where they differentiate themselves from larger, diversified financial service providers.

In comparison to larger competitors like Ally Financial or Santander Consumer USA, which have more extensive resources and diversified financial products, the economic moat of Credit Acceptance is less pronounced. These companies often have broader access to capital markets and can benefit from economies of scale.

In summary, while Credit Acceptance Corporation has a specialized advantage in the subprime market, its economic moat is less significant compared to larger, diversified competitors. The competition could potentially have a stronger economic moat due to their wider product range and stronger financial position.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Return on Equity: 28% (2024)

Credit Acceptance Corporation achieved solid revenue growth of 8.5% in 2024, driven by strong demand for its financial services. The profit growth of 10.2% indicates that the company is operating efficiently and managing its costs well.

The return on equity of 28% is an indicator of the company's high profitability, demonstrating its ability to generate significant profits from its equity. This metric is above average in comparison to the industry and reflects strong financial health.

In summary, Credit Acceptance Corporation can be considered an attractive investment due to its solid financial performance and high profitability. However, investors should also consider other factors such as market conditions and regulatory risks before making a final decision.

Dividend: No dividend (as of 2023)

Credit Acceptance Corporation traditionally does not pay a dividend to its shareholders. The company has focused on reinvesting profits into the growth and expansion of the business rather than distributing capital in the form of dividends.

This strategy is typical for companies that are in a growth stage or that want to concentrate their resources on improving their market position and increasing the company's value. Therefore, it is unlikely that Credit Acceptance Corporation will introduce a dividend in the near future unless there is a significant change in their corporate strategy.