Financials
It’s ROE & long-term growth rates are as good as Coca-Cola’s, but CACC never trades on more than 10x EPS. Today’s outlook is even stronger and yet bizarrely the PE even lower (8x on Dec 22 earnings). CACC should be looked at closely by those that seek wonderful compounding. Instead, Andrew Hollingworth expects many investors will be quick to dismiss the idea of it as a good investment given that it lends money to sub-prime borrowers to buy cars. In this report, he provides a compelling argument as to why that decision would be a mistake.
Edition: 159
- 28 April, 2023