Cango (CANG) AI Stock Analysis

• Market Cap: $541.12M
• Dividend Yield: N/A
• Average Volume (3M): 990.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 1434.51%
• EPS Growth: -1207.73%
• Country: US
• Employees: 217
• Sector: Financial
• Sector Strength: 70
• Industry: Auto - Dealerships
• EPS (TTM): 0.10
• Shares Outstanding: 356,000,000
• 10 Day Avg. Volume: 1,146,062
• 30 Day Avg. Volume: 990,160
• PEG Ratio: -0.02
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 9.28
• P/FCF Ratio: -6.02
• Enterprise Value/Market Cap: 15.16
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 17.45
• Enterprise Value/Ebitda: 241.24
• 1Y Price Target: $3.50
• Price Target Upside: 130.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.15
• Revenue Forecast (FY): $802.68M

• Rating: 57 Neutral
• Price Target: $1.50 ▼(-1.32% Downside)

The score is driven primarily by mixed financial performance: improved profitability and a solid balance sheet profile are weighed down by weak and inconsistent cash flow. Technicals add pressure due to the broader downtrend (below key longer-term moving averages and negative MACD). The earnings call is a relative positive on operational and revenue momentum from the mining transformation, but elevated cost and leverage risks temper the upside; valuation is also constrained by a negative P/E.

Positive Factors

Profitability & Margins

Sustained high gross and net margins indicate the company achieved structural cost control and pricing power in 2024. Durable margin strength supports reinvestment capacity, improves resilience through cycles, and suggests core operations (mining and legacy services) can generate meaningful earnings over months.

Balance Sheet Strength

Very low leverage and a high equity ratio provide a durable capital buffer for capital-intensive mining expansion and energy projects. This structural strength reduces refinancing risk, supports strategic acquisitions, and gives financial flexibility during volatile commodity cycles over the next several months.

Operational Scale & Cost Reduction

A strategic 50MW facility purchase and rising hashrate/efficiency create permanent scale economies and lower per-unit power cost. These structural operational improvements materially reduce OPEX per BTC and underpin the company’s pivot to integrated mining and AI compute infrastructure over the medium term.

Negative Factors

Cash Flow Sustainability

Inability to convert earnings into operating cash in 2024 signals weak cash generation quality and raises questions about funding for capex and mining expansion. Over several months this increases reliance on external financing and elevates execution risk for capital projects and working capital needs.

Commodity & Cost Exposure

High all-in mining costs make profitability highly sensitive to BTC price movements. This structural exposure means prolonged periods of lower BTC materially compress margins and cash flow, undermining the sustainability of mining-derived revenue and complicating medium-term planning and capital allocation.

Financial Leverage & Interest Burden

Material long-term debt with mid-single-digit borrowing costs creates a persistent interest expense that reduces net cash available for reinvestment. Over the coming months, this fixed financing burden increases refinancing risk and constrains flexibility amid capital-intensive mining growth and potential BTC price weakness.

Cango Business Overview & Revenue Model

Company Description

Cango 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 Money

Cango generates revenue primarily through fees charged for its financing services, which include loan origination fees and service fees for connecting customers with lenders. The company earns money by taking a percentage of the total loan amount financed through its platform. Additionally, Cango may also receive commissions from automotive dealers and financial institutions for referring customers to their services. Significant partnerships with banks and financial institutions enhance Cango's ability to offer competitive financing products, contributing to its revenue growth. The increasing demand for automotive financing in China further supports Cango's earnings potential.

Cango Financial Statement Overview

Summary

Profitability improved sharply (strong 2024 margins and a notable turnaround), and leverage appears low per the balance sheet score. Offsetting this, results show high revenue volatility and cash generation is a key weakness (zero free cash flow and zero operating cash flow in 2024), which lowers confidence in earnings quality.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.09B	804.49M	1.70B	1.98B	3.92B	2.05B
Gross Profit	470.34M	444.97M	190.06M	150.36M	963.71M	954.31M
EBITDA	34.02M	182.91M	78.33M	-641.80M	35.30M	329.72M
Net Income	-406.70M	299.82M	-37.87M	-1.11B	-8.54M	3.37B
Balance Sheet
Total Assets	9.52B	5.97B	4.65B	7.02B	10.95B	12.15B
Cash, Cash Equivalents and Short-Term Investments	44.90M	2.52B	1.66B	2.32B	4.03B	5.77B
Total Debt	2.90B	169.54M	90.54M	1.08B	2.00B	2.56B
Total Liabilities	4.62B	1.88B	831.63M	2.69B	3.96B	3.77B
Stockholders Equity	688.46M	4.09B	3.82B	4.32B	6.99B	8.38B
Cash Flow
Free Cash Flow	0.00	-1.24B	1.02B	-572.01M	-423.31M	-626.97M
Operating Cash Flow	0.00	-310.20M	1.03B	-567.39M	-404.39M	-621.61M
Investing Cash Flow	0.00	-1.25B	2.12B	1.96B	2.66B	-493.56M
Financing Cash Flow	0.00	-127.38M	-1.19B	-2.99B	-1.95B	-380.82M

Cango Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CANG, the sentiment is Neutral. The current price of 1.52 is above the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.79, and below the 200-day MA of 3.85, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 45.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CANG.

Cango Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	68 Neutral	$718.96M	26.19	6.11%	―	0.20%	-20.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CANG	57 Neutral	$541.12M	-0.53	-25.80%	―	1434.51%	-1207.73%
RDNW	56 Neutral	$224.98M	-2.12	-268.06%	―	-12.43%	66.92%
UXIN	50 Neutral	$758.70M	-18.94	―	―	―	―
SDA	46 Neutral	$212.18M	-18.39	-48.66%	―	―	―
VRM	38 Underperform	$93.75M	-0.92	-52.02%	―	-81.31%	87.13%

Cango Corporate Events

Cango to Raise $10.5 Million as EWCL Moves Toward Nearly 50% Voting Control

On December 29, 2025, Cango Inc. announced that Enduring Wealth Capital Limited (EWCL), already the sole holder of its Class B ordinary shares and a key voting shareholder, has agreed to subscribe in cash for 7 million additional Class B shares at US$1.50 per share, for total proceeds of US$10.5 million. If completed as expected in January 2026 following customary approvals, including from the New York Stock Exchange, the deal will modestly increase EWCL’s economic stake from about 2.81% to 4.69% of Cango’s outstanding shares but significantly boost its voting power from roughly 36.68% to 49.61%, further concentrating control and potentially shaping the company’s strategic direction in Bitcoin mining, integrated energy and AI compute infrastructure, and its remaining online used-car export operations.

The most recent analyst rating on (CANG) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Cango stock, see the CANG Stock Forecast page.

Cango Inc. Reports Strong Q3 2025 Financial Results Amid Strategic Shift

Cango Inc. reported its unaudited financial results for the third quarter of 2025, highlighting a significant increase in total revenues to $224.6 million, driven primarily by its bitcoin mining operations. The company mined 1,930.8 BTC during the quarter, marking a 37.5% increase in total output compared to the previous quarter. Cango’s strategic transformation into a bitcoin miner has strengthened its position in the industry, with a deployed hashrate of 50 EH/s globally. The company also announced the completion of its ADR program termination and transition to a direct listing on the NYSE, aligning with its strategic focus. Looking forward, Cango aims to build a global, distributed AI compute network powered by green energy, with ongoing energy projects in Oman and Indonesia expected to support its AI infrastructure development.

The most recent analyst rating on (CANG) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Cango stock, see the CANG Stock Forecast page.

Cango Inc. Reports Interim Financial Results Amid Rising Assets and Operating Losses

Cango Inc. reported its unaudited interim condensed consolidated financial statements for the six months ending June 30, 2025. The company, which is involved in bitcoin mining and international automobile trading, saw significant changes in its financial position. Notably, Cango’s total assets increased from $817.8 million at the end of 2024 to $1.12 billion by mid-2025. However, the company reported an operating loss of $204 million for the first half of 2025, primarily due to high operating costs and an impairment loss from mining machines.

The most recent analyst rating on (CANG) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Cango stock, see the CANG Stock Forecast page.

Cango Inc. to Terminate ADR Program and List Shares Directly on NYSE

On October 15, 2025, Cango Inc. announced its decision to terminate its American Depository Receipt (ADR) program, with the termination set for November 14, 2025. Following this, the company’s Class A ordinary shares will be listed directly on the New York Stock Exchange (NYSE) under the symbol ‘CANG’ starting November 17, 2025. This strategic move aims to allow U.S. investors to exercise their rights directly as shareholders, eliminate depositary fees, and potentially enhance the company’s institutional visibility and investor base, aligning with its strategy to become a U.S.-centric organization.

The most recent analyst rating on (CANG) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Cango stock, see the CANG Stock Forecast page.