NasdaqGM:CAN

Stock Analysis Report

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Executive Summary

Canaan Inc. engages in the research, design, and sale of integrated circuit (IC) final system products by integrating IC products for bitcoin mining and related components primarily in the People’s Republic of China. More Details


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CAN is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: CAN's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-40.8%

CAN

5.8%

US Tech

0.9%

US Market


1 Year Return

-52.0%

CAN

77.8%

US Tech

22.1%

US Market

Return vs Industry: CAN underperformed the US Tech industry which returned 80.3% over the past year.

Return vs Market: CAN underperformed the US Market which returned 22.2% over the past year.


Shareholder returns

CANIndustryMarket
7 Day-40.8%5.8%0.9%
30 Day74.5%11.9%10.2%
90 Day96.4%2.5%9.7%
1 Year-52.0%-52.0%79.6%77.8%24.8%22.1%
3 Yearn/a181.2%169.2%48.6%38.7%
5 Yearn/a320.1%279.6%99.6%77.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CAN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CAN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CAN is unprofitable, so we can't compare its PE Ratio to the US Tech industry average.

PE vs Market: CAN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CAN is overvalued based on its PB Ratio (7.1x) compared to the US Tech industry average (2.1x).


Next Steps

Future Growth

How is Canaan forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Canaan has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Canaan performed over the past 5 years?

-245.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CAN is currently unprofitable.

Growing Profit Margin: CAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CAN's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare CAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAN is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-18.8%).


Return on Equity

High ROE: CAN has a negative Return on Equity (-173.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Canaan's financial position?


Financial Position Analysis

Short Term Liabilities: CAN's short term assets (CN¥686.4M) exceed its short term liabilities (CN¥166.2M).

Long Term Liabilities: CAN's short term assets (CN¥686.4M) exceed its long term liabilities (CN¥15.2M).


Debt to Equity History and Analysis

Debt Level: CAN's debt to equity ratio (6.4%) is considered satisfactory.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if CAN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CAN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CAN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAN's dividend payments have been increasing.


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: No need to calculate the sustainability of CAN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Nangeng Zhang (37 yo)

no data

Tenure

Mr. Nangeng Zhang serves as Chairman of the Board and Chief Executive Officer of Canaan Inc. Mr. Zhang has approximately 11 years of experience in electronic device design, engineering, manufacturing, qual...


Leadership Team

NamePositionTenureCompensationOwnership
Nangeng Zhang
Chairman & CEOno datano datano data
N.G. Zhang
Founder and Chief Executive Officerno datano datano data
Quanfu Hong
VP of Finance & CFO4.42yrsno datano data
Jingjie Wu
Vice President of Technology2.83yrsno datano data
Shaoke Li
Secretary to the Board3.17yrsno datano data

3.2yrs

Average Tenure

36.5yo

Average Age

Experienced Management: CAN's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nangeng Zhang
Chairman & CEOno datano datano data
Jiaxuan Li
Director5yrsno datano data
Hongchao Du
Independent Director0.33yrno datano data
Zhitang Shu
Independent Director0.33yrno datano data
Wenjun Zhang
Independent Director0.33yrno datano data
Yaping Zhang
Independent Director0.33yrno datano data

0.3yrs

Average Tenure

Experienced Board: CAN's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Canaan Inc.
  • Ticker: CAN
  • Exchange: NasdaqGM
  • Founded: 2013
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$590.664m
  • Shares outstanding: 156.67m
  • Website: https://canaan-creative.com

Number of Employees


Location

  • Canaan Inc.
  • Dicara Silver Tower
  • 30th Floor
  • Hangzhou
  • Zhejiang Province
  • 310016
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CANNasdaqGM (Nasdaq Global Market)YesSPONSORED ADSUSUSDNov 2019

Biography

Canaan Inc. engages in the research, design, and sale of integrated circuit (IC) final system products by integrating IC products for bitcoin mining and related components primarily in the People’s Republi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 00:31
End of Day Share Price2020/12/03 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.