Cango (CANG) AI Stock Analysis

• Market Cap: $300.47M
• Dividend Yield: N/A
• Average Volume (3M): 811.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• 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: 346,350,370
• 10 Day Avg. Volume: 638,177
• 30 Day Avg. Volume: 811,256
• 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: 15.28
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 134.98
• 1Y Price Target: $3.00
• Price Target Upside: 257.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $1.50 ▲(78.57% Upside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

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

Strategic shift to Bitcoin mining

The company’s strategic transformation into Bitcoin mining materially increased scale and revenue, creating a new core business with measurable production gains. Sustained hashrate growth and mining output can provide durable revenue diversification and higher-margin cash flows if maintained.

Conservative capital structure

A very low leverage profile and high equity ratio provide balance sheet flexibility to fund capital-intensive mining expansion and energy projects. Improved ROE shows better capital utilization, reducing bankruptcy risk and enabling strategic investments without immediate reliance on dilutive financing.

Cost-reducing facility acquisition

Owning a 50 MW facility directly lowers unit operating costs and secures capacity, improving margin sustainability for mining operations. This asset supports scalable hashrate deployment, local operational control, and long-term plans to integrate energy and AI compute infrastructure.

Negative Factors

Inconsistent cash generation

Reported profits have not consistently converted into operating cash, undermining the company’s ability to self-fund capex, service debt, or withstand downturns. Persistent cash conversion weakness increases reliance on external financing and raises execution risk for capital projects.

High bitcoin mining costs

Very high per-BTC cash and all-in costs compress margins and make profitability highly sensitive to Bitcoin price cycles. Over the medium term, elevated unit costs raise breakeven thresholds and limit durable free cash generation unless costs decline or realized BTC prices stay well above these levels.

Material long-term debt and borrowing costs

Substantial long-term debt with mid-single-digit borrowing costs increases interest expense and refinancing risk. Combined with inconsistent cash flow and capital intensity of mining, this leverage profile can constrain strategic flexibility and raise solvency sensitivity in adverse operating environments.

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	3.46B	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	-178.32M	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	319.64M	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	4.90B	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: Negative
• Last Price: 0.84
• 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 Negative. The current price of 0.84 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.25, and below the 200-day MA of 3.48, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 33.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CANG.

Cango Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	68 Neutral	$637.61M	23.22	6.11%	―	0.20%	-20.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CANG	57 Neutral	$300.47M	-0.29	-25.80%	―	1434.51%	-1207.73%
RDNW	56 Neutral	$241.73M	-2.27	-268.06%	―	-12.43%	66.92%
UXIN	50 Neutral	$692.73M	-17.29	―	―	―	―
SDA	46 Neutral	$239.72M	-20.78	-48.66%	―	―	―
VRM	44 Neutral	$86.42M	-0.85	-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.