Canaan Inc Stock Buy Hold or Sell Recommendation
| CAN Stock | USD 0.96 0.03 3.03% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Canaan Inc is 'Strong Sell'. The recommendation algorithm takes into account all of Canaan's available fundamental, technical, and predictive indicators you will find on this site.
Check out Canaan Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Canaan and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Canaan Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Canaan |
Execute Canaan Buy or Sell Advice
The Canaan recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Canaan Inc. Macroaxis does not own or have any residual interests in Canaan Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Canaan's advice using the current market data and latest reported fundamentals.
Time Horizon
3 Months |
Risk Tolerance
I am an educated risk taker |
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Abnormally volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Canaan Trading Alerts and Improvement Suggestions
| Canaan Inc generated a negative expected return over the last 90 days | |
| Canaan Inc has high historical volatility and very poor performance | |
| Canaan Inc has some characteristics of a very speculative penny stock | |
| Canaan Inc has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the last year's revenue of 211.48 M. Reported Net Loss for the year was (414.15 M) with profit before taxes, overhead, and interest of 1.55 B. | |
| Canaan Inc has about 2.64 B in cash with (123.62 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 15.4, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Latest headline from finance.yahoo.com: Is Canaan Inc. the Most Undervalued Bitcoin Mining Stock to Buy Now |
Canaan Returns Distribution Density
The distribution of Canaan's historical returns is an attempt to chart the uncertainty of Canaan's future price movements. The chart of the probability distribution of Canaan daily returns describes the distribution of returns around its average expected value. We use Canaan Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Canaan returns is essential to provide solid investment advice for Canaan.
| Mean Return | -1.26 |
| Value At Risk | -11.21 |
| Potential Upside | 8.04 |
| Standard Deviation | 6.43 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Canaan historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Canaan Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Canaan, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Canaan Inc back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | |||
| Geode Capital Management, Llc | 2024-12-31 | 1.4 M | |
| Polunin Capital Partners Ltd | 2024-12-31 | 1.4 M | |
| Exchange Traded Concepts, Llc | 2024-12-31 | 1.4 M | |
| Two Sigma Advisers, Llc | 2024-12-31 | 1.4 M | |
| Baader Bank Inc | 2024-12-31 | 1.3 M | |
| Morgan Stanley - Brokerage Accounts | 2024-12-31 | 1.2 M | |
| Norges Bank | 2024-12-31 | 1.1 M | |
| Hood River Capital Management Llc | 2024-12-31 | 962.2 K | |
| Blackrock Inc | 2024-12-31 | 961.3 K | |
| Van Eck Associates Corporation | 2024-12-31 | 10.4 M | |
| Vanguard Group Inc | 2024-12-31 | 8.8 M |
Canaan Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (14.4M) | (115.9M) | (233.9M) | (123.9M) | (111.6M) | (117.1M) | |
| Investments | (48.0M) | 42.7M | (4.4M) | 39.6M | 45.6M | 47.9M | |
| Change In Cash | (19.8M) | 365.4M | (295.4M) | (5.4M) | (4.9M) | (4.6M) | |
| Free Cash Flow | 6.1M | 196.2M | (201.8M) | (126.9M) | (114.2M) | (108.5M) | |
| Depreciation | 6.8M | 4.9M | 36.2M | 59.6M | 68.6M | 72.0M | |
| Other Non Cash Items | 60.5M | 104.3M | (105.8M) | 218.4M | 251.2M | 263.7M | |
| Capital Expenditures | 333.3K | 5.6M | 17.9M | 3.3M | 3.0M | 2.8M | |
| Net Income | (33.0M) | 308.4M | 70.4M | (414.2M) | (372.7M) | (354.1M) | |
| End Period Cash Flow | 60.6M | 427.6M | 102.3M | 96.2M | 86.5M | 82.2M | |
| Change To Netincome | 259.3M | (7.6M) | 225.0M | 820.4M | 943.4M | 990.6M |
Canaan Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Canaan or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Canaan's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Canaan stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -1.31 | |
β | Beta against Dow Jones | -0.46 | |
σ | Overall volatility | 6.14 | |
Ir | Information ratio | -0.19 |
Canaan Volatility Alert
Canaan Inc is displaying above-average volatility over the selected time horizon. Canaan Inc is a potential penny stock. Although Canaan may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Canaan Inc. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Canaan instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.Canaan Fundamentals Vs Peers
Comparing Canaan's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Canaan's direct or indirect competition across all of the common fundamentals between Canaan and the related equities. This way, we can detect undervalued stocks with similar characteristics as Canaan or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Canaan's fundamental indicators could also be used in its relative valuation, which is a method of valuing Canaan by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Canaan to competition |
| Fundamentals | Canaan | Peer Average |
| Return On Equity | -0.75 | -0.31 |
| Return On Asset | -0.36 | -0.14 |
| Profit Margin | (1.59) % | (1.27) % |
| Operating Margin | (0.64) % | (5.51) % |
| Current Valuation | 314.49 M | 16.62 B |
| Shares Outstanding | 266.96 M | 571.82 M |
| Shares Owned By Institutions | 20.58 % | 39.21 % |
| Number Of Shares Shorted | 18.99 M | 4.71 M |
| Price To Earning | 1.30 X | 28.72 X |
| Price To Book | 1.14 X | 9.51 X |
| Price To Sales | 1.54 X | 11.42 X |
| Revenue | 211.48 M | 9.43 B |
| Gross Profit | 1.55 B | 27.38 B |
| EBITDA | (330.11 M) | 3.9 B |
| Net Income | (414.15 M) | 570.98 M |
| Cash And Equivalents | 2.64 B | 2.7 B |
| Cash Per Share | 15.40 X | 5.01 X |
| Total Debt | 1.43 M | 5.32 B |
| Debt To Equity | 0.01 % | 48.70 % |
| Current Ratio | 3.85 X | 2.16 X |
| Book Value Per Share | 1.31 X | 1.93 K |
| Cash Flow From Operations | (123.62 M) | 971.22 M |
| Short Ratio | 3.82 X | 4.00 X |
| Earnings Per Share | (1.43) X | 3.12 X |
| Target Price | 2.48 | |
| Number Of Employees | 445 | 18.84 K |
| Beta | 3.07 | -0.15 |
| Market Capitalization | 434.49 M | 19.03 B |
| Total Asset | 493.3 M | 29.47 B |
| Retained Earnings | (219.63 M) | 9.33 B |
| Working Capital | 228.49 M | 1.48 B |
| Current Asset | 984.82 M | 9.34 B |
| Current Liabilities | 401.76 M | 7.9 B |
Canaan Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Canaan . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Canaan Buy or Sell Advice
When is the right time to buy or sell Canaan Inc? Buying financial instruments such as Canaan Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Canaan Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Canaan. If investors know Canaan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Canaan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.92) | Earnings Share (1.43) | Revenue Per Share | Quarterly Revenue Growth (0.03) | Return On Assets |
The market value of Canaan Inc is measured differently than its book value, which is the value of Canaan that is recorded on the company's balance sheet. Investors also form their own opinion of Canaan's value that differs from its market value or its book value, called intrinsic value, which is Canaan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Canaan's market value can be influenced by many factors that don't directly affect Canaan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Canaan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canaan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canaan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.