Cango (CANG) AI Stock Analysis

• Market Cap: $246.06M
• Dividend Yield: N/A
• Average Volume (3M): 504.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 348.38%
• EPS Growth: -1822.72%
• Country: US
• Employees: 217
• Sector: Financial
• Sector Strength: 70
• Industry: Auto - Dealerships
• EPS (TTM): -2.78
• Shares Outstanding: 172,265,230
• 10 Day Avg. Volume: 707,129
• 30 Day Avg. Volume: 504,100
• PEG Ratio: -0.01
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 4.64
• P/FCF Ratio: -3.01
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: -0.27
• 1Y Price Target: $8.00
• Price Target Upside: 492.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $1.50 ▲(11.11% Upside)

Cango's overall stock score is driven by improved financial performance and strategic growth in Bitcoin mining. However, bearish technical indicators, valuation challenges, and financial losses from strategic adjustments weigh heavily on the score.

Positive Factors

Strategic Transformation

The strategic shift to Bitcoin mining positions Cango in a high-growth industry, potentially enhancing long-term revenue and market position.

Strong Balance Sheet

A robust balance sheet with significant cash reserves provides financial stability and flexibility for future investments and growth opportunities.

Expansion in Georgia

The acquisition reduces power costs and enhances operational stability, supporting sustainable growth in Bitcoin mining operations.

Negative Factors

Revenue Volatility

Volatile revenue trends can impact financial predictability and investor confidence, posing risks to long-term growth and stability.

High Cash Costs

High cash costs in Bitcoin mining can strain profitability and limit competitive advantage, affecting long-term financial health.

Operating Losses

Significant operating losses highlight financial challenges, potentially impacting cash flow and investment capacity for future growth.

Cango Business Overview & Revenue Model

Company Description

Cango (CANG) is a leading online platform in China that specializes in automotive financing and services. Operating primarily in the automotive sector, Cango connects car buyers with financial institutions and service providers, facilitating vehicle purchases through a range of financing options. The company offers a comprehensive suite of services that includes loan facilitation, credit assessment, and vehicle-related services, making it a key player in the automotive e-commerce ecosystem.

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

Cango's financial performance is mixed. The income statement shows improved profitability and margins, but revenue volatility is a concern. The balance sheet is strong with low leverage, yet asset and liability fluctuations pose risks. Cash flow inconsistencies and challenges in converting profits to cash highlight potential liquidity risks.

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	2.75B	804.49M	1.70B	1.98B	3.92B	2.05B
Gross Profit	294.57M	444.97M	190.06M	150.36M	963.71M	954.31M
EBITDA	-1.38B	182.91M	78.33M	-641.80M	35.30M	329.72M
Net Income	-2.20B	299.82M	-37.87M	-1.11B	-8.54M	3.37B
Balance Sheet
Total Assets	8.05B	5.97B	4.65B	7.02B	10.95B	12.15B
Cash, Cash Equivalents and Short-Term Investments	843.82M	2.52B	1.66B	2.32B	4.03B	5.77B
Total Debt	1.61B	169.54M	90.54M	1.08B	2.00B	2.56B
Total Liabilities	3.34B	1.88B	831.63M	2.69B	3.96B	3.77B
Stockholders Equity	4.71B	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: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.35 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.87, and below the 200-day MA of 4.30, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 13.13 is Positive, neither overbought nor oversold. The STOCH value of 2.48 is Positive, 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	$643.33M	17.05	6.11%	―	0.20%	-20.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CANG	53 Neutral	$246.06M	―	-31.61%	―	348.38%	-1822.72%
RDNW	53 Neutral	$127.10M	-1.11	-268.06%	―	-12.43%	66.92%
VRM	41 Neutral	$118.39M	-0.63	-52.02%	―	-81.31%	87.13%
UXIN	41 Neutral	$564.90M	-13.84	―	―	―	―
SDA	40 Underperform	$189.74M	-13.86	-59.92%	―	―	―

Cango Corporate Events

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.

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.

Cango Inc. Reports Strong Q2 2025 Results Amid Strategic Transformation

Cango Inc. announced its unaudited financial results for the second quarter of 2025, highlighting a significant transformation into a leading Bitcoin mining company. During this period, the company increased its mining capacity to 50 EH/s and mined 1,404.4 Bitcoins, generating substantial revenue. Despite a net loss due to one-off charges, Cango’s adjusted EBITDA showed strong profitability from its core operations. The company also divested its China-based assets, enhancing liquidity and supporting strategic growth. Cango’s recent acquisition of a mining facility in Georgia marks a pivotal step in reducing power costs and expanding its Bitcoin and energy infrastructure, positioning the company for future growth in high-performance computing and energy initiatives.