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Cango Inc (CANG)
NYSE:CANG
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Cango
(NYSE:CANG)
Rating:58Neutral
Price Target:
$4.50
▼(-7.02%Downside)
Cango (CANG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$306.88M
Dividend YieldN/A
Average Volume (3M)279.93K
Price to Earnings (P/E)6.6
Beta (1Y)0.30
Revenue Growth40.31%
EPS Growth-204.86%
CountryUS
Employees217
SectorConsumer Cyclical
Sector Strength73
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.28
Shares Outstanding67,298,775
10 Day Avg. Volume475,848
30 Day Avg. Volume279,930
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.93
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Cango Business Overview & Revenue Model
Company DescriptionCango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturer, financial institutions, car buyers, and other industry participants in the People's Republic of China. The company offers automobile trading solutions, including car sourcing, logistics, and warehousing support for dealers; and facilitation of car purchases for car buyers. It also facilitates automotive financing services that include facilitating financing transactions from financial institutions to car buyers; and after-market services to car buyers, which includes facilitating the sale of insurance policies from insurance brokers or companies. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyCango makes money through a diversified revenue model primarily driven by service fees from its automotive transaction services. The company generates revenue by facilitating automotive financing, where it earns commissions from financial institutions for connecting them with car buyers seeking financing options. Additionally, Cango earns transaction fees from automotive trading transactions, where it assists in the buying and selling of vehicles. The company also generates income through after-market services facilitation, offering value-added services such as insurance and maintenance, and receiving commissions from these service providers. Key partnerships with financial institutions, car dealerships, and service providers play a significant role in driving Cango's earnings, as these collaborations expand the company's network and enhance its service offerings.
Cango Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 10.00%|
Next Earnings Date:Sep 01, 2025
Earnings Call Sentiment Neutral
Cango's earnings call highlights significant revenue growth primarily driven by its Bitcoin mining operations. The company maintains a strong cash position and has improved loan quality, while also expanding its AutoCango platform. However, there are notable challenges, including operating and net losses, high mining costs, decreased Bitcoin mining output in April, and high electricity costs. The sentiment is balanced with opportunities in the Bitcoin mining sector and strategic efforts to address challenges.Q1-2025 Updates
Positive Updates
Significant Revenue Increase
Total revenue for Q1 2025 was RMB 1.1 billion, a substantial increase from RMB 64.4 million in the same period of 2024, primarily driven by the Bitcoin mining business.
Bitcoin Mining Expansion
Cango mined 1,541 Bitcoin in Q1 2025 and expects to increase its hash rate capacity to 50 exahashes per second by July 31, 2025.
Strong Cash Position
As of March 31, 2025, Cango held cash and cash equivalents of RMB 2.5 billion, providing solid support for future business expansion.
Improved Loan Quality
Cango reduced its total outstanding loan balance to RMB 2.6 billion, with improved M1+ and M3+ ratios of 2.86% and 1.59%, respectively.
Expansion of AutoCango Platform
The AutoCango platform attracted over 2.37 million visits with more than 290,000 registered users and 480,000 used car listings.
Negative Updates
Operating and Net Losses
Cango reported an operating loss of RMB 155.5 million and a net loss of RMB 207.3 million in Q1 2025, primarily due to a decline in Bitcoin prices.
High Cost of Bitcoin Mining
The average cost to mine Bitcoin, excluding depreciation, was USD 70,602.1 per coin, contributing to increased operational expenses.
Decrease in Bitcoin Mining in April
Cango mined 470 coins in April, an 11.3% decrease compared to March, due to increased global network hash rate and mining difficulty.
High Electricity Costs
Cango faced high electricity costs due to the premium associated with power procurement under the hosted operation model.
Company Guidance
During Cango Inc.'s first quarter 2025 earnings call, the company provided detailed guidance on its financial and operational performance. Cango reported total revenue of USD 145 million, with USD 144 million stemming from Bitcoin mining operations, resulting in a gross profit of USD 13.61 million. Despite an operating loss of USD 21.42 million due to a decline in Bitcoin prices, the company maintained a strong cash position with USD 347 million in cash, cash equivalents, and short-term investments. The company's Bitcoin mining business achieved a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate in Q1, while mining a total of 1,541 Bitcoin. Cango plans to expand its hash rate capacity to 50 exahashes per second by July 2025. Additionally, the company reported an M1+ ratio of 2.86% and an M3+ ratio of 1.59%, reflecting improvements in loan quality. Cango remains committed to its "Mine and Hold" strategy, focusing on both self-mining and long-term Bitcoin holding, while also pursuing M&A opportunities to further scale operations.Cango Financial Statement Overview
Summary
Cango demonstrates improved profitability and margins in its income statement despite revenue volatility. The balance sheet is strong with low leverage, but asset and liability fluctuations pose potential risks. Cash flow inconsistencies and challenges in converting profits to cash highlight liquidity risks. Overall, Cango shows improved financial performance but needs to address growth and stability concerns.Income Statement
Cango's income statement indicates a volatile revenue trend with a significant drop in 2023 from 2022, followed by a recovery in 2024. The gross profit margin in 2024 is impressive at 55.30%, showing strong cost control. However, the net profit margin has swung from negative to a robust 37.24% in 2024, indicating improved profitability. EBIT and EBITDA margins have also improved significantly, highlighting enhanced operational efficiency. Despite these improvements, the revenue growth rate is concerning due to the high volatility, impacting the overall score.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.04 in 2024, indicating low leverage. The equity ratio is 68.45%, suggesting a solid capital structure with ample equity buffer. Return on equity has improved dramatically to 7.34% in 2024 from the previous negative figures, showing effective use of shareholder capital. Despite these strengths, the company experienced fluctuations in total assets and liabilities, which may pose potential risks.70
Positive
Cash Flow
Cango's cash flow statement shows inconsistent free cash flow, with a substantial positive free cash flow in 2023 but zero in 2024, raising concerns about sustainable cash generation. The operating cash flow to net income ratio is not calculable due to zero operating cash flow in 2024, indicating potential challenges in translating profits into cash. The historical pattern of negative operating cash flow raises further concerns about cash management.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 804.49M | 1.70B | 1.98B | 3.92B | 2.05B | Gross Profit |
| 444.97M | 190.06M | 150.36M | 963.71M | 954.31M | EBIT |
| 178.89M | -73.75M | -947.14M | 53.91M | 429.86M | EBITDA |
| 182.91M | 78.33M | -947.14M | 35.30M | 439.40M | Net Income Common Stockholders |
| 299.82M | -37.87M | -1.11B | -8.54M | 3.37B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.52B | 1.66B | 2.32B | 4.03B | 5.77B | Total Assets |
| 5.97B | 4.65B | 7.02B | 10.95B | 12.15B | Total Debt |
| 169.54M | 90.54M | 1.08B | 2.00B | 2.56B | Net Debt |
| -1.12B | -930.06M | 697.84M | 569.36M | 1.14B | Total Liabilities |
| 1.88B | 831.63M | 2.69B | 3.96B | 3.77B | Stockholders Equity |
| 4.09B | 3.82B | 4.32B | 6.99B | 8.38B |
| Cash Flow | Free Cash Flow | |||
| -1.24B | 1.02B | -572.01M | -423.31M | -626.97M | Operating Cash Flow |
| -310.20M | 1.03B | -567.39M | -404.39M | -621.61M | Investing Cash Flow |
| -1.25B | 2.12B | 1.96B | 2.66B | -493.56M | Financing Cash Flow |
| -127.38M | -1.19B | -2.99B | -1.95B | -380.82M |
Cango Technical Analysis
Positive
4.84
Price Trends
4.08
Positive
4.19
Positive
3.49
Positive
Market Momentum
0.17
Negative
66.73
Neutral
74.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CANG, the sentiment is Positive. The current price of 4.84 is above the 20-day moving average (MA) of 4.28, above the 50-day MA of 4.08, and above the 200-day MA of 3.49, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CANG.
Cango Risk Analysis
Cango disclosed 95 risk factors in its most recent earnings report. Cango reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cango Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $632.01M | 14.95 | 9.35% | ― | 2.24% | -57.33% | |
67 Neutral | $385.25M | 51.82 | 1.50% | ― | -2.26% | ― | |
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% | |
58 Neutral | $306.88M | 6.63 | 0.12% | ― | 40.31% | -204.86% | |
46 Neutral | $298.46M | ― | -167.38% | ― | ― | ― | |
40 Underperform | $850.78M | ― | 260.24% | ― | 9.33% | 50.69% | |
38 Underperform | $10.95M | ― | -86.66% | ― | ― | -447.71% |
* Consumer Cyclical Sector Average
Performance Comparison
CANG
Cango
4.84
3.35
224.83%
CRMT
America's Car-Mart
47.16
-13.87
-22.73%
CARS
Cars
10.26
-9.07
-46.92%
KXIN
Kaixin Auto Holdings
1.00
-11.13
-91.76%
UXIN
Uxin
4.53
2.23
96.96%
SDA
SunCar Technology Group
2.77
-5.17
-65.11%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.