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Canon
(OTC:CAJPY)
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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)
Canon (CAJPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.03B
Dividend Yield3.39%
Average Volume (3M)15.35K
Price to Earnings (P/E)11.7
Beta (1Y)0.40
Revenue Growth0.08%
EPS Growth110.46%
CountryUS
Employees165,547
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)415.58
Shares Outstanding1,333,763,400
10 Day Avg. Volume30,047
30 Day Avg. Volume15,351
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.20
Price to Sales (P/S)0.86
P/FCF Ratio18.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.33
Revenue Forecast (FY)$29.88B
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
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.76T | 4.85T | 4.51T | 4.18T | 4.03T | 3.51T |
| Gross Profit | 2.28T | 2.27T | 2.14T | 1.97T | 1.83T | 1.63T |
| EBITDA | 685.44B | 763.92B | 540.37B | 631.71B | 579.98B | 524.60B |
| Net Income | 351.87B | 348.15B | 160.03B | 264.51B | 243.96B | 214.72B |
Balance Sheet | ||||||
| Total Assets | 6.34T | 6.14T | 5.77T | 5.42T | 5.10T | 4.75T |
| Cash, Cash Equivalents and Short-Term Investments | 739.26B | 618.85B | 506.34B | 405.14B | 373.01B | 404.77B |
| Total Debt | 1.26T | 946.16B | 663.50B | 517.32B | 417.41B | 320.97B |
| Total Liabilities | 2.67T | 2.36T | 2.12T | 1.81T | 1.75T | 1.65T |
| Stockholders Equity | 3.46T | 3.49T | 3.38T | 3.35T | 3.11T | 2.87T |
Cash Flow | ||||||
| Free Cash Flow | 264.23B | 224.10B | 369.83B | 220.88B | 74.08B | 273.68B |
| Operating Cash Flow | 535.27B | 498.97B | 606.83B | 451.19B | 262.60B | 451.03B |
| 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
Positive
27.64
Price Trends
27.24
Positive
27.06
Positive
28.34
Positive
Market Momentum
0.55
Negative
60.48
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $39.00B | 30.87 | 114.18% | 1.22% | 5.29% | 10.66% | |
74 Outperform | $151.09B | 16.12 | 118.65% | 0.10% | -2.71% | 408.52% | |
72 Outperform | $181.54B | 56.43 | 348.17% | 0.35% | 34.06% | 108.45% | |
71 Outperform | $28.03B | 11.69 | 9.27% | 4.01% | 0.08% | 110.46% | |
65 Neutral | $27.25B | 10.61 | -473.44% | 4.62% | 7.20% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $20.35B | 8.80 | 18.21% | ― | 56.58% | 1.94% |
* Technology Sector Average
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.