Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, subprime auto lender AmeriCredit (NYSE: ACF ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at AmeriCredit's business and see what CAPS investors are saying about the stock right now.
AmeriCredit facts
|
Headquarters (Founded)
|
Fort Worth, Texas (1986)
|
|
Market Cap
|
$2.5 billion
|
|
Industry
|
Credit services
|
|
Trailing-12-Month Revenue
|
$342.2 million
|
|
Management
|
CEO Daniel Berce (since 2005)
CFO Chris Choate (since 2005)
|
|
Compound Annual Revenue and Net Income Growth (Over Past 3 Years)
|
(25.7%) and (64.3%)
|
|
Year-to-Date Return
|
146%
|
|
Cash/Debt
|
$193.3 million/$9.74 billion
|
|
Competitors
|
Credit Acceptance (Nasdaq: CACC )
CompuCredit Holdings
|
|
CAPS Members Bearish on ACF Also Bearish on
|
Citigroup (NYSE: C )
Pulte Homes (NYSE: PHM )
Lennar (NYSE: LEN )
|
|
CAPS Members Bullish on ACF Also Bullish on
|
General Electric (NYSE: GE )
Apple (Nasdaq: AAPL )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 38% of the 243 members who have rated AmeriCredit believe the stock will underperform the S&P 500 going forward. These bears include DarthMaul09 and All-Star gomb0824, who is ranked in the top 2% of our community.
Late last month, DarthMaul09 tapped AmeriCredit's valuation as a tad bit inflated (especially after yesterday's run-up):
Making loans is easy. Collecting the principal and interest may not be. If the loans they are making are fixed rate and inflation becomes a big problem, then they will be paid back in lower valued U.S. dollars. I don't see much up side to this company.
In an earlier pitch, gomb0824 also advised Fools not to give the stock any credit:
Where should I start: the fundamentals or the climate? Their debt is too high ... Compound that with the fact that consumer credit is becoming a four-letter word and the price of oil is going back up (increasing likelihood of loan defaults) ... you begin to see where I'm headed with this. Until car credit and house credit and education loans and unsecured credit level out (and we're not nearly there yet), the road will continue to be rocky [in my opinion].
What do you think about AmeriCredit, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
RSS Headlines
Fool UK