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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4784
Positioning
Market Dominance
Manufacturing
Electronic Equipment
$0
N. G. Zhang
Canaan Inc. engages in the research, design, and sale of integrated circuit (IC) final system products. The company has a strategic cooperation with Northern Data AG in the areas of artificial intelligence development, blockchain technology, and datacenter operations. Canaan was founded in 2013 and is based in Hangzhou, the People's Republic of China.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CAN Canaan Inc. | 25 | 19 | 10 | 10 | - | - | -375.2% | -215.8% | -31.3% | -84.3% | -92.7% | - | - | 9.0x | $0 | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Canaan Inc. (CAN) receives a "Avoid" rating with a composite score of 24.6/100. It ranks #4784 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Moderate investment profile
Below-average composite — caution warranted
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for CAN.
View All RatingsROE proxy -375.2% (sector -1.9%)
GM -31% vs sector 44%, OM -84% vs sector 3%
Capital turnover N/A, R&D intensity 22.8%
Rev growth N/A, 6yr history
Interest coverage -436.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Canaan Inc. (CAN) as Avoid with a composite score of 24.6/100 at a current price of $0.50. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Canaan Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 24.6/100 places it at rank #4784 in our full universe.
No Moat
Very High
Poor
Fair Value
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Canaan Inc. represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Canaan Inc. with an Avoid rating, assigning a composite score of 24.6/100 and 1 out of 5 stars. Ranked #4784 of 7,333 stocks, CAN falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
Canaan Inc. registers a weak quality score of just 19/100, indicating significant profitability challenges. The company reports a return on equity of -375.2% (sector avg: -1.9%), gross margins of -31.3% (sector avg: 44.1%), net margins of -92.7% (sector avg: 1.0%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
CAN registers a value score of just 10/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 1.14x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
With an investment score of 56/100, CAN exhibits moderate growth-oriented spending. Key growth metrics include a return on assets of -215.8% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
Canaan Inc. is experiencing notably weak momentum with a score of just 10/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth data is not currently available, while a beta of 2.57 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
Canaan Inc. registers a low stability score of 16/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 2.57 and a debt-to-equity ratio of 9.00x (sector avg: 0.2x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 48/100 for CAN suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 2.57), elevated leverage (D/E: 9.00x), micro-cap liquidity risk. With a $0 market cap (micro-cap), Canaan Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Canaan Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #4784 of 7,333 overall (35th percentile). Key comparisons include ROE of -375.2% trailing the -1.9% sector median and operating margins of -84.3% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While CAN currently exhibits a AVOID profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Value (10) would have the largest impact on the composite score.
ROE 19648% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 171% BELOW SECTOR MEDIAN
Op. Margin 3460% BELOW SECTOR MEDIAN

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Above 50MA
37.18%
Net New Highs
+51081