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CANCanaan Inc.
$0.27$169M
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  4. Financial Ratios

Canaan Inc. (CAN) Financial Ratios

Latest Ratios: P/E Ratio -0.6x · EV/EBITDA N/A · ROE -59.8%. (2017–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

CAN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Market Cap$169M$324M$557M$397M$354M$884M$927M$876M——
Enterprise Value$144M$298M$555M$302M$-316066052$-1812938599$62.2B$13.8B——
P/E Ratio →-0.59———0.720.45————
P/S Ratio0.320.612.071.880.080.182.070.00——
P/B Ratio0.290.742.091.140.090.262.141.26——
P/FCF—————0.712.80———
P/OCF—————0.692.69———

P/E links to full P/E history page with 30-year chart

CAN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
EV / Revenue—0.562.061.43-0.07-0.37139.010.01——
EV / EBITDA————-0.60-1.00————
EV / EBIT————-1.07-1.01————
EV / FCF—————-1.45188.06———

CAN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Gross Margin7.8%7.8%-31.3%-113.9%35.3%57.2%8.4%-0.0%19.7%45.6%
Operating Margin-21.2%-21.2%-84.3%-194.3%6.6%36.6%-53.6%-0.1%9.8%4.6%
Net Profit Margin-39.7%-39.7%-92.7%-195.8%10.7%40.0%-48.0%-0.1%4.9%28.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
ROE-59.8%-59.8%-81.3%-18.4%12.6%100.9%-38.2%-221.6%23.2%44.4%
ROA-39.5%-39.5%-52.2%-15.9%9.2%58.9%-21.2%-86.4%9.8%31.6%
ROIC-24.9%-24.9%-65.7%-16.4%10.3%4.3%-0.5%-10.8%22.1%6.7%
ROCE-29.7%-29.7%-70.7%-18.0%7.6%90.1%-41.7%-210.0%44.0%7.1%

CAN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Debt / Equity0.130.130.360.000.010.01141.8619.374.35—
Debt / EBITDA————0.050.02——3.94—
Net Debt / Equity—-0.06-0.01-0.27-0.16-0.78141.7218.633.28-0.21
Net Debt / EBITDA————-1.27-1.49——2.97-2.52
Debt / FCF—————-2.16185.25——-2.25
Interest Coverage-52.58-52.58-329.65———-70.78-50.6332.76—

Net cash position: cash ($81M) exceeds total debt ($55M)

CAN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Current Ratio3.313.311.872.697.442.531.703.301.243.37
Quick Ratio1.931.931.341.644.612.141.322.610.712.63
Cash Ratio0.620.620.540.711.391.290.211.850.230.76
Asset Turnover—0.880.580.430.940.870.431434.931.841.10
Inventory Turnover2.702.703.743.181.982.591.829.893.752.71
Days Sales Outstanding—13.29155.39100.8040.5620.4281.880.003.200.36

CAN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Dividend Yield——————————
Payout Ratio————————544.0%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Earnings Yield————138.3%221.4%————
FCF Yield—————141.2%35.7%———
Buyback Yield0.0%0.0%0.0%0.0%100.0%11.7%26.7%0.0%——
Total Shareholder Yield0.0%0.0%0.0%0.0%100.0%11.7%26.7%0.0%——
Shares Outstanding—$469M$271M$172M$172M$172M$156M$144M$132M$131M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Technological obsolescence and liquidity

Market Skepticism Reflects Structural Challenges

Based on current market data, Canaan trades at a price-to-book ratio of 0.33, which, according to recent financial filings, suggests that investors are heavily discounting the company's tangible assets due to the persistent risk of inventory obsolescence and the ongoing inability to generate positive net income.

The negative P/E ratio of -0.68 underscores the market's focus on the company's inability to achieve sustainable profitability rather than its top-line growth potential. This valuation level appears to reflect a deep-seated concern that the company's hardware-centric business model lacks the defensive moat required to compete effectively against larger, more efficient ASIC manufacturers.

Capital Compounding Remains Fundamentally Impaired

As reported in quarterly financial statements, Canaan's ROIC has remained consistently negative, reaching -2.9% in 2025Q4, which indicates that the firm is currently destroying shareholder value rather than compounding it through its heavy investments in semiconductor foundry capacity and research and development initiatives.

The persistent negative ROIC trend suggests that the capital deployed into new chip generations is not yielding sufficient returns to cover the cost of production or the rapid depreciation of existing inventory. Investors should monitor whether the company can pivot toward higher-margin AI applications, as the current core business model appears structurally incapable of generating positive returns on invested capital.

Working Capital Cycles Indicate Strain

According to recent financial data, Canaan's cash conversion cycle reached 115 days in 2025Q4, a figure that, when compared to historical trends, highlights the company's struggle to efficiently manage its inventory and collect payments in a highly volatile and cyclical cryptocurrency mining hardware market.

The elevated days inventory outstanding, which peaked at 220 days in 2023Q3, suggests that the company often holds significant quantities of hardware that may be losing value due to rapid technological advancements. This inefficiency in working capital management forces the company to rely on external financing or equity dilution to maintain operations, further pressuring the balance sheet.

Liquidity Buffers Mask Operational Fragility

Based on reported figures, Canaan maintains a current ratio of 3.31 as of 2025Q4, yet this metric may be misleading because, as indicated in financial disclosures, a significant portion of these current assets is tied up in potentially illiquid inventory that is subject to rapid market devaluation.

While the quick ratio of 1.93 suggests a degree of short-term solvency, the company's reliance on hardware sales means that its liquidity position is highly sensitive to sudden shifts in Bitcoin spot prices. Investors should be cautious, as the company's ability to meet obligations under severe market stress remains unproven given the lack of consistent operating cash flow.

Misapplied Metrics Obscure True Risk

The price-to-sales ratio is the most commonly misapplied metric for Canaan, as it fails to account for the high cost of goods sold and the rapid inventory write-downs that, according to financial statements, frequently render top-line revenue growth meaningless for assessing the company's actual earning power.

Analysts should instead focus on gross margin stability and free cash flow generation, as these metrics better capture the company's ability to survive the 'technological treadmill' of the ASIC industry. Relying on P/S ratios ignores the reality that Canaan's revenue is often generated at the expense of long-term profitability and balance sheet health.

Download Financial Ratios Data

Includes 30+ ratios · 9 years · Updated daily

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CAN — Frequently Asked Questions

Quick answers to the most common questions about buying CAN stock.

What is Canaan Inc.'s P/E ratio?

Canaan Inc.'s current P/E ratio is -0.6x. The historical average is 0.6x.

What is Canaan Inc.'s ROE?

Canaan Inc.'s return on equity (ROE) is -59.8%. The historical average is -26.5%.

Is CAN stock overvalued?

Based on historical data, Canaan Inc. is trading at a P/E of -0.6x. Compare with industry peers and growth rates for a complete picture.

What are Canaan Inc.'s profit margins?

Canaan Inc. has 7.8% gross margin and -21.2% operating margin.