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Canon Inc. (CAJPY)
OTHER OTC:CAJPY
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Canon (CAJPY) AI Stock Analysis

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CAJPY

Canon

(OTC:CAJPY)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
$30.00
▲(8.54% Upside)
Action:Upgraded
Date:07/29/26
The score is driven primarily by solid financial performance (improving profitability and positive free cash flow), and supported by attractive valuation (low P/E and ~4% dividend yield). Offsetting factors include rising leverage and uneven cash-flow conversion/volatility, while technicals are mixed with the stock still below its 200-day average.
Positive Factors
Recurring revenue model
Canon's business mixes hardware sales with consumables, maintenance and managed services across office, imaging and industrial segments. That installed-base recurring revenue supports predictable mid-term cash flows, margin stability and customer lock-in versus pure hardware peers.
Negative Factors
Rising leverage
Leverage has meaningfully increased over recent years, reducing balance-sheet optionality. Higher debt-to-equity raises interest expense sensitivity and limits buffer for cyclical revenue dips or opportunistic investments, constraining strategic flexibility in a higher-rate environment.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
Canon's business mixes hardware sales with consumables, maintenance and managed services across office, imaging and industrial segments. That installed-base recurring revenue supports predictable mid-term cash flows, margin stability and customer lock-in versus pure hardware peers.
Read all positive factors

Canon Key Performance Indicators (KPIs)

Any
Any
Net Sales By Segment
Net Sales By Segment
Chart Insights
Data provided by:The Fly

Canon (CAJPY) vs. SPDR S&P 500 ETF (SPY)

Canon Business Overview & Revenue Model

Company Description
Canon Inc. is a global technological leader, headquartered in Tokyo, Japan, which was established in 1933. The company specializes in the development, production, and worldwide distribution of a comprehensive array of advanced equipment. Its diver...
How the Company Makes Money
Canon primarily makes money by selling hardware products and then earning ongoing revenue from consumables and services tied to its installed base. In the Office segment, revenue is generated from sales and leases of multifunction printers (MFPs),...

Canon Financial Statement Overview

Summary
Fundamentals are healthy but not without risks. Income statement strength (74) reflects improving profitability versus 2024 (TTM gross margin ~47.8%, operating margin ~10.6%, net margin ~7.4%) and steady (mid-to-high single digit) revenue growth in 2023–2025, though TTM growth is modest and margins have shown sensitivity. Balance sheet (67) is stable with meaningful equity support, but leverage has risen (debt-to-equity ~0.36 TTM). Cash flow (62) is positive with TTM FCF ~264B, yet cash conversion is a weak spot (FCF ~49% of net income) and FCF has been volatile.
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
62
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.76T4.85T4.51T4.18T4.03T3.51T
Gross Profit2.28T2.27T2.14T1.97T1.83T1.63T
EBITDA685.44B763.92B540.37B631.71B579.98B524.60B
Net Income351.87B348.15B160.03B264.51B243.96B214.72B
Balance Sheet
Total Assets6.34T6.14T5.77T5.42T5.10T4.75T
Cash, Cash Equivalents and Short-Term Investments739.26B618.85B506.34B405.14B373.01B404.77B
Total Debt1.26T946.16B663.50B517.32B417.41B320.97B
Total Liabilities2.67T2.36T2.12T1.81T1.75T1.65T
Stockholders Equity3.46T3.49T3.38T3.35T3.11T2.87T
Cash Flow
Free Cash Flow264.23B224.10B369.83B220.88B74.08B273.68B
Operating Cash Flow535.27B498.97B606.83B451.19B262.60B451.03B
Investing Cash Flow-219.12B-248.96B-297.32B-275.37B-180.82B-207.26B
Financing Cash Flow-347.85B-187.91B-226.00B-156.73B-146.84B-267.37B

Canon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.64
Price Trends
50DMA
27.24
Positive
100DMA
27.06
Positive
200DMA
28.34
Positive
Market Momentum
MACD
0.55
Negative
RSI
60.48
Neutral
STOCH
88.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAJPY, the sentiment is Positive. The current price of 27.64 is below the 20-day moving average (MA) of 28.09, above the 50-day MA of 27.24, and below the 200-day MA of 28.34, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAJPY.

Canon Risk Analysis

Canon disclosed 20 risk factors in its most recent earnings report. Canon reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Canon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$39.00B30.87114.18%1.22%5.29%10.66%
74
Outperform
$151.09B16.12118.65%0.10%-2.71%408.52%
72
Outperform
$181.54B56.43348.17%0.35%34.06%108.45%
71
Outperform
$28.03B11.699.27%4.01%0.08%110.46%
65
Neutral
$27.25B10.61-473.44%4.62%7.20%4.12%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
52
Neutral
$20.35B8.8018.21%56.58%1.94%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAJPY
Canon
29.06
-0.79
-2.64%
HPQ
HP
29.07
3.77
14.90%
NTAP
NetApp
198.47
92.54
87.37%
STX
Seagate Tech
820.52
666.20
431.72%
SMCI
Super Micro Computer
31.60
-14.83
-31.94%
WDC
Western Digital
437.93
362.23
478.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2026