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CANAAN INC (CAN) Stock Fundamental Analysis

NASDAQ:CAN - Nasdaq - US1347481020 - ADR - Currency: USD

1.67  -0.12 (-6.7%)

After market: 1.665 0 (-0.3%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to CAN. CAN was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. The financial health of CAN is average, but there are quite some concerns on its profitability. CAN is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year CAN has reported negative net income.
CAN had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CAN reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: CAN reported negative operating cash flow in multiple years.
CAN Yearly Net Income VS EBIT VS OCF VS FCFCAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

1.2 Ratios

CAN's Return On Assets of -83.97% is on the low side compared to the rest of the industry. CAN is outperformed by 90.32% of its industry peers.
With a Return On Equity value of -118.96%, CAN is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -83.97%
ROE -118.96%
ROIC N/A
ROA(3y)-12.81%
ROA(5y)-32.65%
ROE(3y)-16.7%
ROE(5y)-49.54%
ROIC(3y)N/A
ROIC(5y)N/A
CAN Yearly ROA, ROE, ROICCAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for CAN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CAN Yearly Profit, Operating, Gross MarginsCAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

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6

2. Health

2.1 Basic Checks

CAN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CAN has more shares outstanding
Compared to 5 years ago, CAN has more shares outstanding
There is no outstanding debt for CAN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CAN Yearly Shares OutstandingCAN Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
CAN Yearly Total Debt VS Total AssetsCAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of -0.18, we must say that CAN is in the distress zone and has some risk of bankruptcy.
CAN has a worse Altman-Z score (-0.18) than 77.42% of its industry peers.
CAN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -0.18
ROIC/WACCN/A
WACC9.06%
CAN Yearly LT Debt VS Equity VS FCFCAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.69 indicates that CAN has no problem at all paying its short term obligations.
CAN has a Current ratio of 2.69. This is in the better half of the industry: CAN outperforms 77.42% of its industry peers.
CAN has a Quick Ratio of 1.64. This is a normal value and indicates that CAN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CAN (1.64) is better than 70.97% of its industry peers.
Industry RankSector Rank
Current Ratio 2.69
Quick Ratio 1.64
CAN Yearly Current Assets VS Current LiabilitesCAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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4

3. Growth

3.1 Past

CAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.72%, which is quite impressive.
Looking at the last year, CAN shows a very negative growth in Revenue. The Revenue has decreased by -67.51% in the last year.
CAN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.36% yearly.
EPS 1Y (TTM)31.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.55%
Revenue 1Y (TTM)-67.51%
Revenue growth 3Y48.25%
Revenue growth 5Y-12.36%
Sales Q2Q%120.92%

3.2 Future

CAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.23% yearly.
Based on estimates for the next years, CAN will show a very strong growth in Revenue. The Revenue will grow by 51.89% on average per year.
EPS Next Y72.44%
EPS Next 2Y42.46%
EPS Next 3Y31.23%
EPS Next 5YN/A
Revenue Next Year32.77%
Revenue Next 2Y63.56%
Revenue Next 3Y51.89%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CAN Yearly Revenue VS EstimatesCAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
CAN Yearly EPS VS EstimatesCAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 -1 -1.5

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2

4. Valuation

4.1 Price/Earnings Ratio

CAN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
CAN is valuated quite expensively with a Price/Forward Earnings ratio of 33.07.
CAN's Price/Forward Earnings ratio is in line with the industry average.
CAN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 33.07
CAN Price Earnings VS Forward Price EarningsCAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
CAN Per share dataCAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1

4.3 Compensation for Growth

CAN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CAN's earnings are expected to grow with 31.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.46%
EPS Next 3Y31.23%

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0

5. Dividend

5.1 Amount

CAN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CANAAN INC

NASDAQ:CAN (2/21/2025, 8:05:07 PM)

After market: 1.665 0 (-0.3%)

1.67

-0.12 (-6.7%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)11-20 2024-11-20/bmo
Earnings (Next)02-25 2025-02-25/amc
Inst Owners31.25%
Inst Owner Change-91.35%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap481.44M
Analysts80
Price Target4.53 (171.26%)
Short Float %105.59%
Short Ratio0.98
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-126.4%
Min EPS beat(2)-186.61%
Max EPS beat(2)-66.2%
EPS beat(4)0
Avg EPS beat(4)-109.18%
Min EPS beat(4)-186.61%
Max EPS beat(4)-66.2%
EPS beat(8)2
Avg EPS beat(8)-47.5%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)25.43%
Min Revenue beat(2)8.9%
Max Revenue beat(2)41.96%
Revenue beat(4)2
Avg Revenue beat(4)4.46%
Min Revenue beat(4)-18.75%
Max Revenue beat(4)41.96%
Revenue beat(8)4
Avg Revenue beat(8)67.44%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)23.84%
PT rev (3m)78.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)11.95%
EPS NY rev (3m)-56.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.76%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 33.07
P/S 2.28
P/FCF N/A
P/OCF N/A
P/B 1.38
P/tB 1.51
EV/EBITDA N/A
EPS(TTM)-0.99
EYN/A
EPS(NY)0.05
Fwd EY3.02%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)-0.43
OCFYN/A
SpS0.73
BVpS1.21
TBVpS1.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -83.97%
ROE -118.96%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-12.81%
ROA(5y)-32.65%
ROE(3y)-16.7%
ROE(5y)-49.54%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score2
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 5.55%
Cap/Sales 1.57%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.69
Quick Ratio 1.64
Altman-Z -0.18
F-Score2
WACC9.06%
ROIC/WACCN/A
Cap/Depr(3y)129.57%
Cap/Depr(5y)93.27%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.55%
EPS Next Y72.44%
EPS Next 2Y42.46%
EPS Next 3Y31.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-67.51%
Revenue growth 3Y48.25%
Revenue growth 5Y-12.36%
Sales Q2Q%120.92%
Revenue Next Year32.77%
Revenue Next 2Y63.56%
Revenue Next 3Y51.89%
Revenue Next 5YN/A
EBIT growth 1Y-1642.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.02%
EBIT Next 3Y33.99%
EBIT Next 5YN/A
FCF growth 1Y52.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.98%
OCF growth 3YN/A
OCF growth 5YN/A