0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%

American Tech Report

Canaan Inc.

Sep 13, 2022

can
Investment Type
Small-Cap
Risk Level
Action
Rec. Price ()

 

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Canaan Inc. offers supercomputing solutions using its own high-performance ASICs (Application Specific Integrated Circuit). Customers may get a comprehensive AI (Artificial Intelligence) solution from the company that includes hardware modules, finished products, software services, algorithm creation and optimization, and AI chips.  

           

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The graphs below demonstrate the rising trend in the company's sales, gross profits, due to increased demand for the company’s products as well as increased efficiency in lowering the cost of revenues for the company. CAN’s topline and gross profit has grown at an impressive 4-year CAGR of 41.36% and 49.06% respectively. Higher CAGR for gross profit compared to revenue signifies improved efficiency in managing the cost of revenues. Furthermore, the company has performed better than the industry median which can be seen in higher profitability margins.

1.4 Top 10 shareholders:

  • The top 10 shareholders together form ~22.30% of the total shareholding, signifying diverse shareholding. Invesco Capital Management LLC (3.92%) and The Vanguard Group, Inc (3.87%) are the biggest shareholders, holding the maximum stake in the company at ~3.92% and ~3.87%, respectively.

1.5 Bitcoin price analysis

The price of bitcoin has shown some positive movement in the past few days, after forming a double bottom on both the daily and weekly time frames. Furthermore, the BTC price has shown signs of bullish divergence in the weekly time frame, which will be confirmed once the price makes higher highs after breaking the key resistance level of USD 25,000. BTC has just broken above its short-term (50-day) SMA with good momentum and a higher RSI of around 62.19. Therefore, as the BTC price is expected to give a breakout above its resistance, similarly the same bullish momentum is expected in the CAN stock price.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q2FY22:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 3: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.


Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.

We use cookies to help us improve, promote, and protect our services. By continuing to use this site, we assume you consent to our Cookies Policy. For more information, read our Privacy Policy and Terms and Conditions