Is Canaan Stock a Good Investment?

Canaan Investment Advice

CAN

To provide specific investment advice or recommendations on Canaan Inc stock, we recommend investors consider the following general factors when evaluating Canaan Inc. This will help you to make an informed decision on whether to include Canaan in one of your diversified portfolios:

Examine Canaan's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Canaan's leadership team and their track record. Good management can help Canaan navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Canaan's business and its evolving consumer preferences.
Compare Canaan's performance and market position to its competitors. Analyze how Canaan is positioned in terms of product offerings, innovation, and market share.
Check if Canaan pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Canaan's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Canaan Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Canaan Inc is a good investment.

Sell

Buy

Strong Sell

We provide trade advice to complement the prevailing expert consensus on Canaan Inc. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Canaan is not overpriced, please confirm all Canaan Inc fundamentals, including its price to book, total debt, number of employees, as well as the relationship between the ebitda and cash flow from operations . As Canaan Inc appears to be a penny stock we also recommend to validate its price to earning numbers.

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	Moves indifferently to market moves	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine Canaan Stock

Researching Canaan's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 21.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.14. Some equities with similar Price to Book (P/B) outperform the market in the long run. Canaan Inc recorded a loss per share of 1.43. The entity had not issued any dividends in recent years.

To determine if Canaan is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Canaan's research are outlined below:

	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
	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 patch.com: New Canaan Human Services Launches Online Donations Portal

Canaan Quarterly Liabilities And Stockholders Equity

502.14 Million

Canaan uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Canaan Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Canaan's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	5th of March 2024 Upcoming Quarterly Report	View
	24th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	5th of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Canaan's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Canaan's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2024-08-15	2024-06-30	-0.02	-0.01	0.01	50
2022-11-14	2022-09-30	0.07	0.14	0.07	100
2023-03-07	2022-12-31	-0.15	-0.29	-0.14	93
2023-11-28	2023-09-30	-0.28	-0.47	-0.19	67
2024-05-17	2024-03-31	-0.36	-0.1589	0.2011	55
2023-05-26	2023-03-31	-0.22	-0.43	-0.21	95
2024-11-26	2024-09-30	-0.05	-0.2723	-0.2223	444
2024-02-27	2023-12-31	-0.19	-0.55	-0.36	189

Know Canaan's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Canaan is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Canaan Inc backward and forwards among themselves. Canaan's institutional investor refers to the entity that pools money to purchase Canaan's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may 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

Note, although Canaan's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Canaan's market capitalization trends

The company currently falls under 'Small-Cap' category with a total capitalization of 434.49 M.

Market Cap

6.51 Billion

Canaan's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.98)	(0.93)
Return On Capital Employed	(1.32)	(1.25)
Return On Assets	(0.97)	(0.92)
Return On Equity	(1.37)	(1.30)

The company has Net Profit Margin of (1.59) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (0.64) %, which entails that for every $100 of revenue, it lost $0.64.

Determining Canaan's profitability involves analyzing its financial statements and using various financial metrics to determine if Canaan is a good buy. For example, gross profit margin measures Canaan's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Canaan's profitability and make more informed investment decisions.

Evaluate Canaan's management efficiency

Canaan Inc has Return on Asset of (0.3618) % which means that on every $100 spent on assets, it lost $0.3618. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.7469) %, meaning that it generated no profit with money invested by stockholders. Canaan's management efficiency ratios could be used to measure how well Canaan manages its routine affairs as well as how well it operates its assets and liabilities. As of the 20th of March 2025, Return On Tangible Assets is likely to grow to -0.93. In addition to that, Return On Capital Employed is likely to grow to -1.25. At this time, Canaan's Total Assets are very stable compared to the past year. As of the 20th of March 2025, Net Tangible Assets is likely to grow to about 5.1 B, though Other Assets are likely to grow to (8.2 M).

	Last Reported	Projected for Next Year
Book Value Per Share	0.16	0.23
Tangible Book Value Per Share	0.15	0.23
Enterprise Value Over EBITDA	(20.42)	(19.40)
Price Book Value Ratio	1.31	1.25
Enterprise Value Multiple	(1.05)	(1.00)
Price Fair Value	1.31	1.25
Enterprise Value	6.7 B	6.4 B

Evaluating the management effectiveness of Canaan allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Canaan Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.

Beta

3.067

Basic technical analysis of Canaan Stock

As of the 20th of March, Canaan shows the Mean Deviation of 5.03, standard deviation of 6.43, and Risk Adjusted Performance of (0.17). Canaan Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Canaan's Outstanding Corporate Bonds

Canaan issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Canaan Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Canaan bonds can be classified according to their maturity, which is the date when Canaan Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Dana 575 percent Corp Bond US235822AB96	View
	MPLX LP 4875 Corp Bond US55336VAJ98	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	Morgan Stanley 3591 Corp Bond US61744YAK47	View
	Morgan Stanley 3971 Corp Bond US61744YAL20	View
	MGM Resorts International Corp Bond US552953CD18	View
	Valero Energy Partners Corp Bond US91914JAA07	View

View All Canaan Corporate Bonds

Understand Canaan's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Canaan's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.17)
	Market Risk Adjusted Performance	(0.87)
	Mean Deviation	5.03
	Coefficient Of Variation	(508.69)
	Standard Deviation	6.43
	Variance	41.39
	Information Ratio	(0.19)
	Jensen Alpha	(1.17)
	Total Risk Alpha	(0.73)
	Treynor Ratio	(0.88)
	Maximum Drawdown	36.67
	Value At Risk	(11.21)
	Potential Upside	8.04
	Skewness	0.1283
	Kurtosis	0.8436

	Risk Adjusted Performance	(0.17)
	Market Risk Adjusted Performance	(0.87)
	Mean Deviation	5.03
	Coefficient Of Variation	(508.69)
	Standard Deviation	6.43
	Variance	41.39
	Information Ratio	(0.19)
	Jensen Alpha	(1.17)
	Total Risk Alpha	(0.73)
	Treynor Ratio	(0.88)
	Maximum Drawdown	36.67
	Value At Risk	(11.21)
	Potential Upside	8.04
	Skewness	0.1283
	Kurtosis	0.8436

Consider Canaan's intraday indicators

Canaan intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Canaan stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0571
	Daily Balance Of Power	(0.14)
	Rate Of Daily Change	0.99
	Day Median Price	1.02
	Day Typical Price	1.01
	Market Facilitation Index	0.06
	Price Action Indicator	(0.03)
	Period Momentum Indicator	(0.01)
	Relative Strength Index	34.21

Canaan time-series forecasting models is one of many Canaan's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Canaan's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Canaan Stock media impact

Far too much social signal, news, headlines, and media speculation about Canaan that are available to investors today. That information is available publicly through Canaan media outlets and privately through word of mouth or via Canaan internal channels. However, regardless of the origin, that massive amount of Canaan data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Canaan news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Canaan relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Canaan's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Canaan alpha.

Canaan Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Canaan can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Canaan Corporate Management

Lu Meng	Secretary Board	Profile
Zhang Xi	Investor Manager	Profile
Nangeng Zhang	Chairman CEO	Profile
Clark Soucy	Investor Director	Profile
James Cheng	Chief Officer	Profile

When determining whether Canaan Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Canaan's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Canaan Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Canaan Inc Stock: