Canon (CAJPY) AI Stock Analysis

• Market Cap: $28.52B
• Dividend Yield: 3.07%
• Average Volume (3M): 5.33K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.60
• Revenue Growth: 0.09%
• EPS Growth: -42.77%
• Country: US
• Employees: 111,733
• Sector: Technology
• Sector Strength: 44
• Industry: Computer Hardware
• EPS (TTM): -0.38
• Shares Outstanding: 1,333,763,000
• 10 Day Avg. Volume: 15,982
• 30 Day Avg. Volume: 5,327
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.21
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Canon's robust financial performance, with strong revenue growth and solid cash flow, is the most significant factor supporting its stock score. Technical analysis suggests a cautious outlook due to bearish indicators. The valuation appears high, which could deter new investors despite the attractive dividend yield. Overall, Canon is well-positioned but faces challenges in technical momentum and valuation.

Canon Business Overview & Revenue Model

Company Description

Canon Inc., together with its subsidiaries, manufactures and sells office multifunction devices (MFDs), laser and inkjet printers, cameras, medical equipment, and lithography equipment worldwide. The company operates through Printing Business Unit, Imaging Business Unit, Medical Business Unit, Industrial Business Unit, and Others segments. The Printing Business Unit segment offers office MFDs, document solutions, laser multifunction printers, image scanners, calculators, digital continuous feed presses, digital sheet-fed presses, and large format printers. The Imaging Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras, interchangeable lenses, compact photo printers, network cameras, video management and video content analytics software, digital camcorders, digital cinema cameras, broadcast equipment, and projectors. The Medical System Business Unit segment offers computed tomography systems, diagnostic ultrasound systems, diagnostic X-ray systems, magnetic resonance imaging systems, clinical chemistry analyzers, digital radiography systems, and ophthalmic equipment. The Industrial and Others Business segment provides semiconductor lithography equipment, flat panel display lithography equipment, vacuum thin-film deposition equipment, organic light-emitting diode display manufacturing equipment, handy terminals, document scanners, and die bonders. The company also provides maintenance services. It sells its products under the Canon brand through subsidiaries to retail dealers. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Canon generates revenue through multiple streams across its diverse range of products and services. The Office segment produces the bulk of its income, primarily through the sale and leasing of multifunctional devices and printers, along with related services and supplies. The Imaging System segment contributes significantly through sales of cameras, camcorders, and related accessories. Canon's Medical System segment provides revenue through the sale of diagnostic imaging equipment and healthcare IT solutions. Additionally, the Industry & Others segment includes sales from semiconductor lithography equipment and security cameras. Canon also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. The company's earnings are influenced by its strong brand reputation, continuous innovation, and global distribution network.

Canon Financial Statement Overview

Summary

Canon displays a strong financial performance with stable profitability, sound financial health, and robust cash flow generation. Despite the increase in total debt, the company's solid equity base and cash flow capabilities provide a buffer against financial risks.

Income Statement

Canon has shown consistent revenue growth with a notable increase in revenue from 2022 to 2023. Its gross profit margin and net profit margin have remained stable, reflecting strong profitability. The EBIT and EBITDA margins are also healthy, indicating efficient operational management.

Balance Sheet

Canon maintains a solid balance sheet with a favorable debt-to-equity ratio, indicating manageable leverage. The company's equity ratio is strong, reflecting a stable financial position. However, a gradual increase in total debt over the years poses potential risk if not managed carefully.

Cash Flow

Canon's cash flow statement demonstrates a robust operating cash flow with a significant free cash flow growth from 2022 to 2023. The operating cash flow to net income ratio indicates efficient cash generation relative to net income, though the free cash flow to net income ratio could be improved.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.35T	4.18T	4.03T	3.51T	3.16T	3.59T
	Gross Profit
2.06T	1.97T	1.83T	1.63T	1.38T	1.61T
	EBIT
397.09B	375.37B	353.40B	281.92B	110.55B	174.67B
	EBITDA
667.30B	631.71B	579.98B	524.60B	358.96B	433.86B
	Net Income Common Stockholders
292.51B	264.51B	243.96B	214.72B	83.32B	124.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
735.25B	405.14B	373.01B	404.77B	407.75B	414.58B
	Total Assets
4.03T	5.42T	5.10T	4.75T	4.63T	4.77T
	Total Debt
36.05B	517.32B	417.41B	320.97B	506.17B	514.95B
	Net Debt
-679.49B	115.99B	55.31B	-80.42B	98.49B	102.13B
	Total Liabilities
1.15T	1.81T	1.75T	1.65T	1.84T	1.88T
	Stockholders Equity
2.68T	3.35T	3.11T	2.87T	2.58T	2.69T
Cash Flow		Free Cash Flow
284.72B	220.88B	74.08B	273.68B	169.09B	142.79B
	Operating Cash Flow
539.11B	451.19B	262.60B	451.03B	333.81B	358.46B
	Investing Cash Flow
-329.94B	-275.37B	-180.82B	-207.26B	-155.44B	-228.57B
	Financing Cash Flow
-187.60B	-156.73B	-146.84B	-267.37B	-183.45B	-232.59B

Canon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAJPY, the sentiment is Negative. The current price of 29.49 is below the 20-day moving average (MA) of 30.22, below the 50-day MA of 32.09, and below the 200-day MA of 32.16, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 70.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAJPY.

Canon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCI	71 Outperform	$17.51B	12.88	32.21%	―	124.51%	87.78%
CAJPY	69 Neutral	$28.52B	27.08	4.67%	3.07%	0.09%	-42.77%
WDC	68 Neutral	$12.51B	8.58	13.99%	―	38.59%	―
DELL	66 Neutral	$57.50B	12.92	-179.12%	2.16%	7.84%	42.63%
STX	66 Neutral	$15.95B	13.79	-109.27%	3.84%	24.17%	―
HPQ	63 Neutral	$22.39B	8.53	84.33%	4.76%	1.03%	-18.56%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%