Canon (CAJPY) AI Stock Analysis

• Market Cap: $27.69B
• Dividend Yield: 3.19%
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.39
• Revenue Growth: 4.88%
• EPS Growth: -39.81%
• Country: US
• Employees: 111,733
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.47
• Shares Outstanding: 1,333,763,400
• 10 Day Avg. Volume: 4,925
• 30 Day Avg. Volume: 2,941
• PEG Ratio: -0.83
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 13.39
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $30.00 ▲(0.23% Upside)

Canon's overall stock score reflects a combination of stable financial performance and moderate valuation. The primary concerns are the negative revenue and free cash flow growth trends, which weigh down the score. Technical analysis suggests mixed market sentiment, with some potential for upward movement. The absence of earnings call and corporate events data limits insights into strategic shifts or upcoming catalysts.

Canon Business Overview & Revenue Model

Company Description

Canon Inc. is a multinational corporation headquartered in Tokyo, Japan, specializing in imaging and optical products, including cameras, camcorders, printers, and medical equipment. Established in 1937, Canon operates in several key sectors, including consumer imaging, professional imaging, and office solutions. The company is renowned for its innovative technologies in digital imaging and printing, providing high-quality products for both individual consumers and businesses. Canon's extensive product lineup includes digital single-lens reflex (DSLR) cameras, mirrorless cameras, multifunction printers, and large-format printers, catering to a diverse global market.

How the Company Makes Money

Canon generates revenue through multiple key streams, primarily from the sale of imaging products and solutions. Its core revenue comes from the consumer and professional imaging segments, which include cameras, lenses, and related accessories. The company also earns significant income from its printer and office equipment division, providing multifunction printers and document solutions to businesses. Additionally, Canon has a growing presence in the medical imaging sector, offering products like digital radiography systems. Partnerships with retailers and distributors worldwide facilitate product sales, while a focus on developing innovative technologies and services enhances customer loyalty and recurring revenue. Canon also leverages a subscription model for some of its software and printing services, further diversifying its revenue streams.

Canon Financial Statement Overview

Summary

Canon's financial statements present a mixed picture. The company demonstrates strong profitability and a stable balance sheet with moderate leverage. However, the decline in revenue growth and free cash flow growth in the TTM period are areas of concern. While operational efficiency is improving, the company needs to address the negative growth trends to enhance its financial performance.

Income Statement

Canon's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy gross profit margin of approximately 47%, and the net profit margin is stable at around 3.6%. The EBIT and EBITDA margins have improved in the TTM period, suggesting operational efficiency. Overall, while profitability is stable, the negative revenue growth is a key area of concern.

Balance Sheet

Canon's balance sheet is strong, with a debt-to-equity ratio of 0.35 in the TTM period, indicating moderate leverage. The return on equity is modest at 5.1%, reflecting stable profitability. The equity ratio stands at 53.8%, showcasing a solid capital structure. Overall, the balance sheet reflects financial stability with manageable debt levels.

Cash Flow

The cash flow statement reveals some challenges, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is 0.29, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.54, suggesting that a reasonable portion of net income is converted into free cash flow. While cash flow generation is adequate, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.55T	4.51T	4.18T	4.03T	3.51T	3.16T
Gross Profit	2.15T	2.14T	1.97T	1.83T	1.63T	1.38T
EBITDA	704.51B	540.37B	631.71B	579.98B	524.60B	358.96B
Net Income	166.12B	160.03B	264.51B	243.96B	214.72B	83.32B
Balance Sheet
Total Assets	5.97T	5.77T	5.42T	5.10T	4.75T	4.63T
Cash, Cash Equivalents and Short-Term Investments	721.99B	506.34B	405.14B	373.01B	404.77B	407.75B
Total Debt	1.12T	663.50B	517.32B	417.41B	320.97B	506.17B
Total Liabilities	2.49T	2.12T	1.81T	1.75T	1.65T	1.84T
Stockholders Equity	3.21T	3.38T	3.35T	3.11T	2.87T	2.58T
Cash Flow
Free Cash Flow	282.30B	369.83B	220.88B	74.08B	273.68B	169.09B
Operating Cash Flow	523.74B	606.83B	451.19B	262.60B	451.03B	333.81B
Investing Cash Flow	-272.54B	-297.32B	-275.37B	-180.82B	-207.26B	-155.44B
Financing Cash Flow	-106.41B	-226.00B	-156.73B	-146.84B	-267.37B	-183.45B

Canon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 29.93 is above the 20-day moving average (MA) of 29.46, above the 50-day MA of 29.56, and below the 200-day MA of 30.38, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of -0.23 is Positive, 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
NTAP	―	$23.07B	20.16	123.00%	1.80%	3.45%	9.69%
WDC	―	$47.35B	29.30	25.98%	0.15%	2.12%	―
SMCI	―	$29.93B	30.35	17.90%	―	47.04%	-17.89%
STX	―	$57.15B	34.09	―	1.08%	31.56%	106.00%
HPQ	―	$25.71B	10.08	―	4.18%	3.11%	-3.54%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CAJPY	―	$27.69B	23.54	4.98%	3.19%	4.88%	-39.81%