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CAN

CanaanNasdaqGM:CAN Stock Report

Market Cap

US$1.1b

7D

3.7%

1Y

244.4%

Updated

15 Oct, 2021

Data

Company Financials
CAN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

CAN Overview

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.

Canaan Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canaan
Historical stock prices
Current Share PriceUS$6.51
52 Week HighUS$1.85
52 Week LowUS$39.10
Beta0
1 Month Change-20.71%
3 Month Change12.83%
1 Year Change244.44%
3 Year Changen/a
5 Year Changen/a
Change since IPO-27.59%

Recent News & Updates

Aug 16

Bitcoin Mining Machine Maker Canaan Plays Up Offshore Sales

Company announces two major new international orders over last two weeks as ongoing crackdown pressures sales in its home China market. Canaan Inc.’s recent series of deals from two major international customers could be worth around $200 million in 2021 and 2022. Company is trying to highlight its growing global customer base as China shutters most domestic crypto mining in recent crackdown.

Jun 16

Canaan secures an order of 10,000 bitcoin mining machines

Canaan Inc. (CAN) has secured a purchase order for 10,000 of its A1246 and A1166Pro Bitcoin mining machines from Genesis Digital Assets Limited, a leading Bitcoin mining firm with extensive experience in building and operating industrial-scale Bitcoin mining data centers.As per the terms, the Company will deliver the Bitcoin mining machines to Genesis Digital Assets in full by June 30, 2021.Mr. Nangeng Zhang, Chairman and CEO: "We are excited to announce this additional purchase order from Genesis Digital Assets. This

Jun 08

Canaan: China Bitcoin Crackdown Spells Short-Term Trouble

Canaan is a Bitcoin mining equipment company and their revenues have been extremely volatile as they follow the craze of cryptocurrencies. Even as longer-term prospects of product offerings and diversification remain possible, the current operating environment doesn't warrant a serious investment look. I maintain my neutral to bearish stance on the company's 12-month prospects.

Shareholder Returns

CANUS TechUS Market
7D3.7%1.3%2.0%
1Y244.4%25.1%27.6%

Return vs Industry: CAN exceeded the US Tech industry which returned 22.5% over the past year.

Return vs Market: CAN exceeded the US Market which returned 26.8% over the past year.

Price Volatility

Is CAN's price volatile compared to industry and market?
CAN volatility
CAN Beta0
Industry Beta1.22
Market Beta1

Stable Share Price: CAN is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: CAN's weekly volatility has decreased from 24% to 16% over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2013248Nangeng Zhanghttps://canaan-creative.com

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. It is also involved in the assembly of system products; and supply chain and distribution of system products. The company has a strategic cooperation with Northern Data AG in the areas of artificial intelligence development, blockchain technology, and datacenter operations.

Canaan Fundamentals Summary

How do Canaan's earnings and revenue compare to its market cap?
CAN fundamental statistics
Market CapCN¥6.97b
Earnings (TTM)-CN¥215.09m
Revenue (TTM)CN¥447.69m

16.0x

P/S Ratio

-33.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAN income statement (TTM)
RevenueCN¥447.69m
Cost of RevenueCN¥409.92m
Gross ProfitCN¥37.76m
ExpensesCN¥252.86m
Earnings-CN¥215.09m

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)-1.26
Gross Margin8.43%
Net Profit Margin-48.05%
Debt/Equity Ratio8.0%

How did CAN perform over the long term?

See historical performance and comparison

Valuation

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

16.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CAN ($6.51) is trading above our estimate of fair value ($1.11)

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


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 (16.6x) compared to the US Tech industry average (2.3x).


Future Growth

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

3.3%

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.


Past Performance

How has Canaan performed over the past 5 years?

79.2%

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 (63.2%).


Return on Equity

High ROE: CAN has a negative Return on Equity (-49.73%), as it is currently unprofitable.


Financial Health

How is Canaan's financial position?


Financial Position Analysis

Short Term Liabilities: CAN's short term assets (CN¥1.0B) exceed its short term liabilities (CN¥592.5M).

Long Term Liabilities: CAN's short term assets (CN¥1.0B) exceed its long term liabilities (CN¥11.3M).


Debt to Equity History and Analysis

Debt Level: CAN's debt to equity ratio (8%) 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.


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?

3.8yrs

Average management tenure


CEO

Nangeng Zhang (38 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

Experienced Management: CAN's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: CAN's board of directors are not considered experienced ( 1.2 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 been diluted in the past year, with total shares outstanding growing by 9.3%.


Top Shareholders

Company Information

Canaan Inc.'s 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$1.083b
  • Shares outstanding: 171.28m
  • Website: https://canaan-creative.com

Number of Employees


Location

  • Canaan Inc.
  • QianFang Science Building C
  • 1-2/F, No. 27 Zhongguancun Software Park
  • Beijing
  • 100193
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 23:33
End of Day Share Price2021/10/15 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.