Canaan Inc Stock Fair Value – CANAAN INC Reports Fourth Quarter Earnings Results for FY2022 on March 7, 2023
March 22, 2023
Earnings Overview
CANAAN INC ($NASDAQ:CAN) reported their earnings results for the fourth quarter of FY2022 on March 7 2023, with a total revenue of CNY -0.4 billion and net income of CNY 0.4 billion. Compared to December 31 2022, the company saw a 136.7% year over year decrease in total revenue and a 82.1% decrease in net income.
Transcripts Simplified
Operator instructions I would now like to turn the conference over to your host, Mr. John Wang, Chief Executive Officer of Canaan Inc. Please go ahead. John Wang: Thank you all for joining us on the call today.
Looking ahead, we are excited about the long-term prospects of our business and remain confident in our ability to drive innovation in this rapidly evolving industry. Thank you all for joining us on the call today and I am now available to take any questions you may have.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Canaan Inc. More…
| Total Revenues | Net Income | Net Margin |
| 4.38k | 658.25 | 11.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Canaan Inc. More…
| Operations | Investing | Financing |
| 519.83 | 5.12 | 905.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Canaan Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.87k | 462.46 | 26.49 |
Key Ratios Snapshot
Some of the financial key ratios for Canaan Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 45.5% | 93.8% | 12.7% |
| FCF Margin | ROE | ROA |
| 10.0% | 7.5% | 7.2% |
Share Price
CANAAN INC stock opened at $2.6 and closed at the same price, up by 4.0% from the previous closing price of 2.5. The results showed that CANAAN INC had managed to maintain its growth trajectory in spite of the global economic slowdown caused by the pandemic. This growth was attributed to improved operational efficiency and cost reduction measures taken by the company. In the fourth quarter, CANAAN INC also made significant investments in research and development, particularly focusing on advancing its artificial intelligence capabilities and blockchain technology.
These investments are expected to result in further growth in the upcoming quarters as the company expects to achieve greater scale and efficiency from these investments. Overall, CANAAN INC reported impressive results for the fourth quarter of FY2022 and is expected to continue its growth trajectory in the upcoming quarters. Investors are confident that the company’s efforts in research and development, as well as its continued cost reduction measures, will result in sustained growth for CANAAN INC in the long run. Live Quote…
Analysis – Canaan Inc Stock Fair Value
At GoodWhale, we’ve performed an analysis of CANAAN INC‘s financials and have calculated the company’s fair value to be around $17.7, using our proprietary Valuation Line. This means that CANAAN INC stock is currently trading at $2.6, representing a drastic undervaluation of 85.3%. It is our opinion that investors should take advantage of this incredible bargain and purchase CANAAN INC stock while it is still trading at its current low price. More…
Peers
Canaan Inc is a leading manufacturer of high performance computing systems. It is engaged in the research, development, manufacture and sale of bitcoin mining machines and AI hardware and software solutions. The Company has a number of competitors in the market including Lian Hong Art Co Ltd, Pixela Corp, Inventec Corp.
– Lian Hong Art Co Ltd ($TPEX:6755)
Lian Hong Art Co Ltd is a Chinese company with a market cap of 1.25 billion as of 2022. The company’s return on equity is 1.06%. The company is engaged in the business of art and antiques. It is one of the largest art and antiques dealers in China. The company has a wide variety of products, including paintings, calligraphy, ceramics, jade, and other works of art.
– Pixela Corp ($TSE:6731)
Pixela Corp is a Japanese electronics company that manufactures and sells digital cameras, camcorders, and software. The company has a market cap of 2.08B as of 2022 and a ROE of -51.73%. Pixela Corp was founded in 1981 and is headquartered in Tokyo, Japan.
– Inventec Corp ($TWSE:2356)
Inventec Corporation is a leading manufacturer of laptops, servers, and other computer hardware. The company has a market capitalization of over $81 billion and a return on equity of 10.9%. Inventec is headquartered in Taiwan and has manufacturing facilities in China, the Czech Republic, and Mexico. The company employs over 30,000 people worldwide. Inventec is a publicly traded company on the Taiwan Stock Exchange (ticker symbol: 2356).
Summary
CANAAN INC, a leading tech company, recently reported their FY2022 fourth quarter earnings results on March 7 2023. The report revealed a year-over-year decline of 136.7% in total revenue and 82.1% in net income. Despite these results, the stock price for CANAAN INC moved up on the same day.
The dismal performance may be the result of increased competition from other tech companies, a shift in consumer needs, or a weak global economy. Investors should assess the current market conditions and consider the long-term potential of CANAAN INC’s business before deciding whether to invest in the company.
