Cango Operating Margin vs. Revenue

CANG Stock  USD 4.58  0.03  0.66%   
Considering Cango's profitability and operating efficiency indicators, Cango Inc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Cango's ability to earn profits and add value for shareholders.

Cango Operating Profit Margin

(0.0412)

At this time, Cango's Sales General And Administrative To Revenue is most likely to increase slightly in the upcoming years. The Cango's current Operating Cash Flow Sales Ratio is estimated to increase to 0.63, while Price To Sales Ratio is projected to decrease to 0.49. At this time, Cango's Accumulated Other Comprehensive Income is most likely to increase significantly in the upcoming years. The Cango's current Income Tax Expense is estimated to increase to about 146.5 M, while Net Interest Income is projected to decrease to roughly 45.5 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.110.1117
Fairly Down
Slightly volatile
For Cango profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cango to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cango Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cango's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cango Inc over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cango. If investors know Cango will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cango listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.923
Earnings Share
0.18
Revenue Per Share
2.528
Quarterly Revenue Growth
(0.92)
Return On Assets
0.0154
The market value of Cango Inc is measured differently than its book value, which is the value of Cango that is recorded on the company's balance sheet. Investors also form their own opinion of Cango's value that differs from its market value or its book value, called intrinsic value, which is Cango's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cango's market value can be influenced by many factors that don't directly affect Cango's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cango's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cango is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cango's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Cango Inc Revenue vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cango's current stock value. Our valuation model uses many indicators to compare Cango value to that of its competitors to determine the firm's financial worth.
Cango Inc is number one stock in operating margin category among its peers. It is rated below average in revenue category among its peers totaling about  1,630,971,482  of Revenue per Operating Margin. At this time, Cango's Operating Profit Margin is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cango by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cango Revenue vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Cango

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
1.04 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Cango

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
1.7 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Cango Revenue vs Competition

Cango Inc is rated below average in revenue category among its peers. Market size based on revenue of Consumer Discretionary industry is currently estimated at about 157.17 Billion. Cango claims roughly 1.7 Billion in revenue contributing just under 2% to stocks in Consumer Discretionary industry.

Cango Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cango, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cango will eventually generate negative long term returns. The profitability progress is the general direction of Cango's change in net profit over the period of time. It can combine multiple indicators of Cango, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income111.8 M117.4 M
Net Interest Income66.4 M45.5 M
Interest Income75.6 M57.8 M
Operating Income-73.8 M-70.1 M
Net Loss-493 M-468.4 M
Income Before Tax55.6 M52.8 M
Total Other Income Expense Net129.3 M122.9 M
Net Loss-1 B-950.1 M
Net Loss-37.9 M-36 M
Income Tax Expense93.5 M146.5 M
Change To Netincome-56.5 M-59.3 M
Net Loss(0.31)(0.30)
Income Quality(27.09)(25.74)
Net Loss(0.68)(0.65)

Cango Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cango. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cango position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cango's important profitability drivers and their relationship over time.

Use Cango in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cango position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cango will appreciate offsetting losses from the drop in the long position's value.

Cango Pair Trading

Cango Inc Pair Trading Analysis

The ability to find closely correlated positions to Cango could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cango when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cango - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cango Inc to buy it.
The correlation of Cango is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cango moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cango Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cango can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cango position

In addition to having Cango in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Adviser Favorites Thematic Idea Now

Adviser Favorites
Adviser Favorites Theme
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Cango Inc is a strong investment it is important to analyze Cango's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cango's future performance. For an informed investment choice regarding Cango Stock, refer to the following important reports:
Check out Trending Equities.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
To fully project Cango's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cango Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cango's income statement, its balance sheet, and the statement of cash flows.
Potential Cango investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cango investors may work on each financial statement separately, they are all related. The changes in Cango's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cango's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.