Make it or break it for Credit Acceptance in 2019
 | By Rifka Kats | Macroaxis Story |
This piece will go over Credit Acceptance. I will look into why we are still optimistic in anticipation of a recovery. Credit Acceptance moves totally opposite to market. The returns on the market and returns on Credit Acceptance appear slightly correlated for the last few months. Weak basic indicators of the company may also suggest signs of long term losses for the company investors. We found thirty-five 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 945.17K, 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 unexpected upward trend. Watch out for market signals. Check odds of Credit Acceptance to be traded at $559.62 in 30 days.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
The company average rating is Strong Sell from 8 analysts. As of 16 of April Credit Acceptance shows Mean Deviation of 1.16 and Risk Adjusted Performance of 0.1095. Credit Acceptance technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm future prices. In plain English you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum or the prices will eventually revert. We found nineteen technical drivers for Credit Acceptance Corporation which can be compared to its rivals. Please confirm Credit Acceptance Variance, Maximum Drawdown and the relationship between Coefficient Of Variation and Jensen Alpha to decide if Credit Acceptance is priced correctly providing market reflects its regular price of 466.35 per share. Given that Credit Acceptance has Jensen Alpha of 0.3401, we suggest you validate Credit Acceptance Corporation prevailing market performance to make sure the company can sustain itself at future point.
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.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Credit Acceptance. In general, sophisticated investors focus on analyzing Credit Acceptance stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Credit Acceptance's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Credit Acceptance's intrinsic value. In addition to deriving basic predictive indicators for Credit Acceptance, many experienced traders also check how macroeconomic factors affect Credit Acceptance price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
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?
The modest gains experienced by current holders of Credit Acceptance could raise concerns from investors as the firm closed today at a share price of 457.04 on 41421 in volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in March. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.3413. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Credit Acceptance preserves 15.16x of price to earning. Credit Acceptance is selling for under 466.35. That is 2.14 percent up. Opened at 466.35. Credit Acceptance Issuance Repayment of Debt Securities is somewhat stable at the moment. Credit Acceptance Earnings per Basic Share USD is somewhat stable at the moment. Additionally, Credit Acceptance Issuance Purchase of Equity Shares is somewhat stable at the moment. On the whole, we see that Credit Acceptance Moves totally opposite to market. The company is overvalued with below average probability of financial unrest within the next 24 months. Our concluding buy/sell advice on the company is Strong Sell.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Credit Acceptance. Please refer to our Terms of Use for any information regarding our disclosure principles.