Is Canoo Stock a Good Investment?
Canoo Investment Advice | GOEV |
- Examine Canoo's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Canoo's leadership team and their track record. Good management can help Canoo navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact Canoo's business and its evolving consumer preferences.
- Compare Canoo's performance and market position to its competitors. Analyze how Canoo is positioned in terms of product offerings, innovation, and market share.
- Check if Canoo pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Canoo's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Canoo Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Canoo Inc is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Abnormally volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Canoo Stock
Researching Canoo's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 21.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.2. Some equities with similar Price to Book (P/B) outperform the market in the long run. Canoo Inc recorded a loss per share of 1.72. The entity had not issued any dividends in recent years. The firm had 1:23 split on the 8th of March 2024.
To determine if Canoo is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Canoo's research are outlined below:
| Canoo Inc generated a negative expected return over the last 90 days | |
| Canoo Inc has high historical volatility and very poor performance | |
| Canoo Inc has some characteristics of a very speculative penny stock | |
| Canoo Inc has a very high chance of going through financial distress in the upcoming years | |
| Canoo Inc currently holds 89.99 M in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest the company is not taking enough advantage from borrowing. Canoo Inc has a current ratio of 0.38, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Canoo's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the previous year's revenue of 886 K. Net Loss for the year was (302.02 M) with profit before overhead, payroll, taxes, and interest of 1.88 M. | |
| Canoo Inc currently holds about 36.48 M in cash with (251.13 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.13. | |
| Canoo Inc has a poor financial position based on the latest SEC disclosures | |
| Latest headline from zacks.com: Is Canoo a Buy as Wall Street Analysts Look Optimistic |
Canoo uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Canoo Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Canoo's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 4th of April 2024 Upcoming Quarterly Report | View | |
| 20th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 4th of April 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Canoo's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Canoo's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-05-15 | 2023-03-31 | -0.19 | -0.22 | -0.03 | 15 | ||
2023-08-14 | 2023-06-30 | -0.19 | -0.14 | 0.05 | 26 | ||
2022-11-09 | 2022-09-30 | -0.48 | -0.43 | 0.05 | 10 | ||
2023-11-14 | 2023-09-30 | -0.12 | -0.06 | 0.06 | 50 | ||
2021-03-29 | 2020-12-31 | -0.14 | -0.08 | 0.06 | 42 | ||
2022-02-28 | 2021-12-31 | -0.51 | -0.6 | -0.09 | 17 | ||
2021-11-15 | 2021-09-30 | -0.44 | -0.35 | 0.09 | 20 | ||
2023-03-30 | 2022-12-31 | -0.35 | -0.25 | 0.1 | 28 |
Know Canoo's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Canoo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Canoo Inc backward and forwards among themselves. Canoo's institutional investor refers to the entity that pools money to purchase Canoo's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of America Corp | 2024-06-30 | 203.7 K | Bank Of New York Mellon Corp | 2024-06-30 | 183.8 K | Charles Schwab Investment Management Inc | 2024-09-30 | 164.1 K | Ep Wealth Advisors, Inc. | 2024-09-30 | 100 K | Alliancebernstein L.p. | 2024-06-30 | 98.2 K | Rhumbline Advisers | 2024-06-30 | 71.9 K | Citigroup Inc | 2024-09-30 | 69.3 K | Goldman Sachs Group Inc | 2024-06-30 | 64.5 K | Exoduspoint Capital Management, Lp | 2024-09-30 | 62.2 K | Vanguard Group Inc | 2024-09-30 | 3.9 M | Blackrock Inc | 2024-06-30 | 3.9 M |
Canoo's market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 43.55 M.Market Cap |
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Canoo's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.56) | (0.59) | |
| Return On Capital Employed | (0.75) | (0.79) | |
| Return On Assets | (0.56) | (0.59) | |
| Return On Equity | (1.21) | (1.15) |
Determining Canoo's profitability involves analyzing its financial statements and using various financial metrics to determine if Canoo is a good buy. For example, gross profit margin measures Canoo's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Canoo's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Canoo's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Canoo Inc. Check Canoo's Beneish M Score to see the likelihood of Canoo's management manipulating its earnings.
Evaluate Canoo's management efficiency
Canoo Inc has return on total asset (ROA) of (0.2517) % which means that it has lost $0.2517 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.7267) %, meaning that it created substantial loss on money invested by shareholders. Canoo's management efficiency ratios could be used to measure how well Canoo manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.59 in 2024. Return On Capital Employed is likely to drop to -0.79 in 2024. At this time, Canoo's Other Assets are fairly stable compared to the past year. Non Currrent Assets Other is likely to climb to about 100.9 M in 2024, whereas Other Current Assets are likely to drop slightly above 12.9 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 9.96 | 9.46 | |
| Tangible Book Value Per Share | 9.96 | 9.46 | |
| Enterprise Value Over EBITDA | (0.81) | (0.85) | |
| Price Book Value Ratio | 0.59 | 0.56 | |
| Enterprise Value Multiple | (0.81) | (0.85) | |
| Price Fair Value | 0.59 | 0.56 | |
| Enterprise Value | 228 M | 216.6 M |
Canoo Inc benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Beta 1.29 |
Basic technical analysis of Canoo Stock
As of the 26th of November, Canoo shows the Standard Deviation of 8.88, risk adjusted performance of (0.10), and Mean Deviation of 5.54. Canoo Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Canoo Inc variance and potential upside to decide if Canoo Inc is priced correctly, providing market reflects its regular price of 0.42 per share. As Canoo Inc is a penny stock we also strongly suggest to validate its jensen alpha numbers.Canoo's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Canoo insiders, such as employees or executives, is commonly permitted as long as it does not rely on Canoo's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Canoo insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Canoo's Outstanding Corporate Bonds
Canoo issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Canoo Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Canoo bonds can be classified according to their maturity, which is the date when Canoo Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Canoo's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Canoo's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | (0.90) | |||
| Mean Deviation | 5.54 | |||
| Coefficient Of Variation | (673.03) | |||
| Standard Deviation | 8.88 | |||
| Variance | 78.79 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (1.50) | |||
| Total Risk Alpha | (2.73) | |||
| Treynor Ratio | (0.91) | |||
| Maximum Drawdown | 48.91 | |||
| Value At Risk | (16.22) | |||
| Potential Upside | 9.18 | |||
| Skewness | 0.3523 | |||
| Kurtosis | 5.65 |
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | (0.90) | |||
| Mean Deviation | 5.54 | |||
| Coefficient Of Variation | (673.03) | |||
| Standard Deviation | 8.88 | |||
| Variance | 78.79 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (1.50) | |||
| Total Risk Alpha | (2.73) | |||
| Treynor Ratio | (0.91) | |||
| Maximum Drawdown | 48.91 | |||
| Value At Risk | (16.22) | |||
| Potential Upside | 9.18 | |||
| Skewness | 0.3523 | |||
| Kurtosis | 5.65 |
Consider Canoo's intraday indicators
Canoo intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Canoo stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 589536.0 | |||
| Daily Balance Of Power | (0.60) | |||
| Rate Of Daily Change | 0.93 | |||
| Day Median Price | 0.44 | |||
| Day Typical Price | 0.44 | |||
| Price Action Indicator | (0.04) | |||
| Period Momentum Indicator | (0.03) | |||
| Relative Strength Index | 17.68 |
Canoo Stock media impact
Far too much social signal, news, headlines, and media speculation about Canoo that are available to investors today. That information is available publicly through Canoo media outlets and privately through word of mouth or via Canoo internal channels. However, regardless of the origin, that massive amount of Canoo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Canoo news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Canoo relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Canoo's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Canoo alpha.
Canoo Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Canoo can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Canoo Corporate Management
| Richard Kim | Chief Officer | Profile | |
| Jonathan CFA | Vice Relations | Profile | |
| Kate Lengyel | Chief Officer | Profile | |
| Nick Cunningham | VP Relations | Profile | |
| Kunal Bhalla | Capital Development | Profile | |
| Michael Carter | Chief Officer | Profile | |
| Agnes GomesKoizumi | Vice Communications | Profile |
Additional Tools for Canoo Stock Analysis
When running Canoo's price analysis, check to measure Canoo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canoo is operating at the current time. Most of Canoo's value examination focuses on studying past and present price action to predict the probability of Canoo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canoo's price. Additionally, you may evaluate how the addition of Canoo to your portfolios can decrease your overall portfolio volatility.