Cango Stock Story

CANG
 Stock
  

USD 2.68  0.01  0.37%   

As many baby boomers are still indifferent towards financial services space, we will concentrate on both Cango Inc ADR as well as Airbnb Inc Cl. We are going to discuss some of the competitive aspects of both Cango and Airbnb.
Published over two months ago
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Will Airbnb Inc and Cango (NYSE:CANG) make up?

By analyzing existing basic indicators between Cango Inc and Airbnb, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Airbnb with a short position in Cango Inc. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cango Inc has an asset utilization ratio of 459.57 percent. This indicates that the company is making $4.6 for each dollar of assets. An increasing asset utilization means that Cango Inc ADR is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Cango Inc's Liquidity

Cango Inc financial leverage refers to using borrowed capital as a funding source to finance Cango Inc ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cango Inc financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cango Inc's total debt and its cash.

How does Cango utilize its cash?

To perform a cash flow analysis of Cango Inc, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cango Inc is receiving and how much cash it distributes out in a given period. The Cango Inc cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cango Inc Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (404.39 Million)

Breaking it down a bit more

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

Revenue Breakdown

Now, let's check Cango Inc revenue. Based on the latest financial disclosure, Cango Inc ADR reported 3.92 B of revenue. This is 65.03% lower than that of the Financial Services sector and 30.66% lower than that of the Credit Services industry. The revenue for all United States stocks is 58.45% higher than that of Cango Inc. As for Airbnb Inc we see revenue of 5.99 B, which is 5.95% higher than that of the Credit Services

Cango3.92 Billion
Sector5.65 Billion
Airbnb5.99 Billion
3.9 B
Cango
5.7 B
Sector
B
Airbnb

How will Cango shareholders react to the next dip?

Cango Inc latest semi deviation ascents over 6.08. Cango Inc ADR is displaying above-average volatility over the selected time horizon. Investors should scrutinize Cango Inc ADR independently to ensure intended market timing strategies are aligned with expectations about Cango Inc volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cango Inc's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cango Inc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Cango Inc Implied Volatility

Cango Inc's implied volatility exposes the market's sentiment of Cango Inc ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cango Inc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cango Inc stock will not fluctuate a lot when Cango Inc's options are near their expiration.

Our Conclusion on Cango Inc

Although some other firms in the credit services industry are either recovering or due for a correction, Cango may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 3rd of June 2022, our analysis shows that Cango Inc responds to the market. The firm is undervalued and projects low probability of financial unrest for the next 2 years. Our actual 90 days buy-or-sell advice on the firm is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Cango Inc ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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