NYSE:CANG

Stock Analysis Report

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Executive Summary

Cango Inc. operates an automotive transaction service platform that connects dealers, financial institutions, car buyers, and other industry participants in the People’s Republic of China. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Cango's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CANG is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: CANG's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

3.9%

CANG

0.2%

US Online Retail

-0.4%

US Market


1 Year Return

-12.1%

CANG

55.8%

US Online Retail

19.5%

US Market

Return vs Industry: CANG underperformed the US Online Retail industry which returned 55.8% over the past year.

Return vs Market: CANG underperformed the US Market which returned 19.6% over the past year.


Shareholder returns

CANGIndustryMarket
7 Day3.9%0.2%-0.4%
30 Day1.6%-1.4%2.3%
90 Day38.6%-0.7%12.7%
1 Year-8.1%-12.1%56.0%55.8%22.3%19.5%
3 Yearn/a87.6%87.5%44.4%34.8%
5 Yearn/a305.6%304.8%128.7%103.3%

Long-Term Price Volatility Vs. Market

How volatile is Cango's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cango undervalued compared to its fair value and its price relative to the market?

3.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CANG ($7.47) is trading above our estimate of fair value ($6.81)

Significantly Below Fair Value: CANG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CANG is good value based on its PE Ratio (3.8x) compared to the US Online Retail industry average (32x).

PE vs Market: CANG is good value based on its PE Ratio (3.8x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CANG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CANG is good value based on its PB Ratio (1x) compared to the US Online Retail industry average (4.9x).


Next Steps

Future Growth

How is Cango forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

19.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CANG's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if CANG's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CANG's revenue (19.6% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: CANG's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CANG's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Cango performed over the past 5 years?

60.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CANG has a large one-off gain of CN¥1.9B impacting its September 30 2020 financial results.

Growing Profit Margin: CANG's current net profit margins are higher than last year (25.1%).


Past Earnings Growth Analysis

Earnings Trend: CANG's earnings have grown significantly by 60% per year over the past 5 years.

Accelerating Growth: CANG's earnings growth over the past year (458.7%) exceeds its 5-year average (60% per year).

Earnings vs Industry: CANG earnings growth over the past year (458.7%) exceeded the Online Retail industry 26.1%.


Return on Equity

High ROE: CANG's Return on Equity (27.7%) is considered high.


Next Steps

Financial Health

How is Cango's financial position?


Financial Position Analysis

Short Term Liabilities: CANG's short term assets (CN¥5.0B) exceed its short term liabilities (CN¥2.3B).

Long Term Liabilities: CANG's short term assets (CN¥5.0B) exceed its long term liabilities (CN¥946.0M).


Debt to Equity History and Analysis

Debt Level: CANG's debt to equity ratio (34.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CANG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CANG's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: CANG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Cango current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CANG's dividend (3.33%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: CANG's dividend (3.33%) is low compared to the top 25% of dividend payers in the US market (3.85%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CANG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CANG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CANG is not forecast to pay a dividend in 3 years.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average board tenure


CEO

Jiayuan Lin (51 yo)

11yrs

Tenure

Mr. Jiayuan Lin is a Co-Founder of Cango Inc. and also has been its Chief Executive Officer and Director since 2010. Mr. Lin served as an assistant general manager of Shanghai Automobile Group Finance Comp...


Board Members

NamePositionTenureCompensationOwnership
Xiaojun Zhang
Co-Founder & Chairman of the Board7yrsno data12.68%
CN¥ 143.0m
Jiayuan Lin
Co-Founder11yrsno data19.66%
CN¥ 221.7m
Yongyi Zhang
CFO & Director3yrsno datano data
Zhi Ming Lee
Independent Director2.5yrsno datano data
Langlang Zhou
Director4yrsno datano data
Rong Liu
Independent Director1.5yrsno datano data
Zhipeng Song
Director3yrsno datano data
Xiaoyu Liu
Director3yrsno datano data
Dongsheng Zhou
Independent Director2.5yrsno datano data

3.0yrs

Average Tenure

48yo

Average Age

Experienced Board: CANG's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cango Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cango Inc.
  • Ticker: CANG
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$1.128b
  • Shares outstanding: 150.97m
  • Website: https://www.cangoonline.com

Number of Employees


Location

  • Cango Inc.
  • 10A, Building 3
  • Youyou Century Plaza
  • Shanghai
  • 200127
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CANGNYSE (New York Stock Exchange)YesADSUSUSDJul 2018

Biography

Cango Inc. operates an automotive transaction service platform that connects dealers, financial institutions, car buyers, and other industry participants in the People’s Republic of China. It facilitates a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 23:59
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.