Cango EBITDA vs. Return On Equity

CANG Stock  USD 4.07  0.13  3.30%   
Considering Cango's profitability and operating efficiency indicators, Cango's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Cango's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
70.5 M
Current Value
121.4 M
Quarterly Volatility
330.7 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Cango's Sales General And Administrative To Revenue is most likely to increase slightly in the upcoming years. The Cango's current Operating Cash Flow Sales Ratio is estimated to increase to 0.73, while Days Sales Outstanding is projected to decrease to 33.36. At this time, Cango's Net Income Per Share is most likely to increase slightly in the upcoming years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.5531
Fairly Down
Slightly volatile
For Cango profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cango to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cango Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cango's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cango Inc over time as well as its relative position and ranking within its peers.
  
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Is Automotive Retail 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.
Quarterly Earnings Growth
1.923
Earnings Share
0.36
Revenue Per Share
7.728
Quarterly Revenue Growth
4.129
Return On Assets
0.0208
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.
Please note, there is a significant difference between Cango's value and its price as these two are different measures arrived at by different 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.

Cango Inc Return On Equity vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cango's current stock value. Our valuation model uses many indicators to compare Cango value to that of its competitors to determine the firm's financial worth.
Cango Inc is rated below average in ebitda category among its peers. It also is rated below average in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Cango Inc is about  1,031,985,995 . At this time, Cango's EBITDA is most likely to decrease significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cango by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cango Return On Equity vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Cango

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
78.33 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Cango

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0759
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Cango Return On Equity Comparison

Cango is currently under evaluation in return on equity category among its peers.

Cango Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cango, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cango will eventually generate negative long term returns. The profitability progress is the general direction of Cango's change in net profit over the period of time. It can combine multiple indicators of Cango, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income100.7 M105.7 M
Net Interest Income76.3 M45.5 M
Interest Income86.9 M57.8 M
Operating Income-66.4 M-63.1 M
Net Loss-443.7 M-421.5 M
Income Before Tax50 M47.5 M
Total Other Income Expense Net148.7 M141.3 M
Net Loss-1 B-950.1 M
Net Loss-34.1 M-32.4 M
Income Tax Expense107.5 M146.5 M
Change To Netincome-56.5 M-59.3 M
Net Income Per Share 1.29  1.51 
Income Quality(31.15)(29.60)
Net Income Per E B T 1.00  0.58 

Cango Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cango. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cango position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cango's important profitability drivers and their relationship over time.

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Cango without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Cango position

In addition to having Cango in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Emerging Markets Funds
Emerging Markets Funds Theme
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets Funds Theme or any other thematic opportunities.
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When determining whether Cango Inc is a strong investment it is important to analyze Cango's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cango's future performance. For an informed investment choice regarding Cango Stock, refer to the following important reports:
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To fully project Cango's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cango Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cango's income statement, its balance sheet, and the statement of cash flows.
Potential Cango investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cango investors may work on each financial statement separately, they are all related. The changes in Cango's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cango's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.