Is Cango Stock a Good Investment?
Cango Investment Advice | CANG |
- Examine Cango'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 Cango's leadership team and their track record. Good management can help Cango navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Business Services space and any emerging trends that could impact Cango's business and its evolving consumer preferences.
- Compare Cango's performance and market position to its competitors. Analyze how Cango is positioned in terms of product offerings, innovation, and market share.
- Check if Cango pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Cango'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 Cango 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 Cango Inc is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Cango Stock
Researching Cango'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 16.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.79. Some equities with similar Price to Book (P/B) outperform the market in the long run. Cango Inc last dividend was issued on the 25th of November 2022.
To determine if Cango 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 Cango's research are outlined below:
| Cango Inc generated a negative expected return over the last 90 days | |
| Cango Inc has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 1.7 B. Net Loss for the year was (37.87 M) with profit before overhead, payroll, taxes, and interest of 444.97 M. | |
| About 16.0% of the company shares are held by company insiders |
Cango 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 Cango 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 Cango'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.
| 14th of March 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 30th of September 2023 Last Quarter Report | View |
Cango's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 486.34 M.Cango's profitablity analysis
The company has Profit Margin (PM) of 0.37 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.08 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.08.Determining Cango's profitability involves analyzing its financial statements and using various financial metrics to determine if Cango is a good buy. For example, gross profit margin measures Cango'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 Cango's profitability and make more informed investment decisions.
Basic technical analysis of Cango Stock
As of the 20th of March, Cango shows the Standard Deviation of 5.59, mean deviation of 4.21, and Risk Adjusted Performance of (0.02). Cango 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. Please confirm Cango Inc variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Cango Inc is priced correctly, providing market reflects its regular price of 4.16 per share. Given that Cango has information ratio of (0.02), we suggest you to validate Cango Inc's prevailing market performance to make sure the company can sustain itself at a future point.Cango's Outstanding Corporate Bonds
Cango 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. Cango 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 Cango bonds can be classified according to their maturity, which is the date when Cango 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 BondUS235822AB96 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Cango's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Cango'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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 4.21 | |||
| Coefficient Of Variation | (3,270) | |||
| Standard Deviation | 5.59 | |||
| Variance | 31.28 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | 0.2911 | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 25.28 | |||
| Value At Risk | (8.55) | |||
| Potential Upside | 9.39 | |||
| Skewness | 0.5661 | |||
| Kurtosis | 0.4711 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 4.21 | |||
| Coefficient Of Variation | (3,270) | |||
| Standard Deviation | 5.59 | |||
| Variance | 31.28 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | 0.2911 | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 25.28 | |||
| Value At Risk | (8.55) | |||
| Potential Upside | 9.39 | |||
| Skewness | 0.5661 | |||
| Kurtosis | 0.4711 |
Consider Cango's intraday indicators
Cango 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 Cango 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.
Cango time-series forecasting models is one of many Cango'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 Cango'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.
Cango Stock media impact
Far too much social signal, news, headlines, and media speculation about Cango that are available to investors today. That information is available publicly through Cango media outlets and privately through word of mouth or via Cango internal channels. However, regardless of the origin, that massive amount of Cango 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 Cango 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 Cango 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 Cango's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cango alpha.
Cango Corporate Management
| Ming Chi | Independent Director | Profile | |
| Xiaojun Zhang | CoFounder Chairman | Profile | |
| Zhou Langlang | Director | Profile | |
| Yongyi Zhang | CFO Director | Profile | |
| Liu Rong | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cango 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 board of governors. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Business Services 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 Cango. If investors know Cango 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 Cango listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cango Inc is measured differently than its book value, which is the value of Cango that is recorded on the company's balance sheet. Investors also form their own opinion of Cango's value that differs from its market value or its book value, called intrinsic value, which is Cango'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 Cango's market value can be influenced by many factors that don't directly affect Cango's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Cango's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Cango is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cango'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.