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Canon Inc. (CAJPY)
:CAJPY

Canon (CAJPY) AI Stock Analysis

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Canon

(OTC:CAJPY)

Rating:63Neutral
Price Target:
$29.00
▲(4.88%Upside)
Canon's robust financial performance is the strongest factor, supporting its stability and growth potential. However, technical analysis indicates bearish trends, which weigh down the overall score. Valuation offers a neutral impact, reflecting fair pricing in the current market environment.

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

Canon Business Overview & Revenue Model

Company DescriptionCanon 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 MoneyCanon 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 exhibits robust financial health with strong revenue growth, stable balance sheet, and solid cash flow generation. The company demonstrates efficient operations and a prudent capital structure with low leverage. Although there are minor concerns with decreasing EBIT margins and the need for further profitability enhancement, the overall trajectory is positive, positioning Canon well for future growth in the competitive computer hardware industry.
Income Statement
85
Very Positive
Canon's income statement reflects strong performance with a gross profit margin of 47.5% and a net profit margin of 3.5% in 2024. The revenue growth rate was 7.85% from 2023 to 2024, indicating positive growth momentum. EBIT and EBITDA margins were 6.2% and 12.0% respectively, demonstrating efficient operations and solid earnings before interest, tax, depreciation, and amortization. However, there was a decline in EBIT margin compared to the previous year, which poses a minor concern.
Balance Sheet
78
Positive
The balance sheet shows a healthy financial structure with a debt-to-equity ratio of 0.20, indicating low leverage. The return on equity (ROE) is 4.73%, which is moderate but indicates room for improvement in profitability. The equity ratio stands at 58.7%, showcasing stability with a significant portion of assets funded by equity. The increase in total assets and equity over the years reflects positive growth, yet the slight rise in debt requires monitoring.
Cash Flow
82
Very Positive
Canon's cash flow statement reveals strong free cash flow growth of 67.45% from 2023 to 2024, indicating enhanced cash generation capacity. The operating cash flow to net income ratio is 3.79, reflecting effective cash conversion from earnings. The free cash flow to net income ratio is 2.31, showcasing a solid ability to generate free cash relative to net income. Despite the positive cash flow metrics, attention should be paid to the investment in capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.51T4.18T4.03T3.51T3.16T
Gross Profit2.14T1.97T1.83T1.63T1.38T
EBITDA540.37B631.71B579.98B524.60B358.96B
Net Income160.03B264.51B243.96B214.72B83.32B
Balance Sheet
Total Assets5.77T5.42T5.10T4.75T4.63T
Cash, Cash Equivalents and Short-Term Investments506.34B405.14B373.01B404.77B407.75B
Total Debt663.50B517.32B417.41B320.97B506.17B
Total Liabilities2.12T1.81T1.75T1.65T1.84T
Stockholders Equity3.38T3.35T3.11T2.87T2.58T
Cash Flow
Free Cash Flow369.83B220.88B74.08B273.68B169.09B
Operating Cash Flow606.83B451.19B262.60B451.03B333.81B
Investing Cash Flow-297.32B-275.37B-180.82B-207.26B-155.44B
Financing Cash Flow-226.00B-156.73B-146.84B-267.37B-183.45B

Canon Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.65
Price Trends
50DMA
30.11
Negative
100DMA
31.04
Negative
200DMA
31.86
Negative
Market Momentum
MACD
-0.56
Positive
RSI
37.50
Neutral
STOCH
9.83
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 27.65 is below the 20-day moving average (MA) of 28.98, below the 50-day MA of 30.11, and below the 200-day MA of 31.86, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 37.50 is Neutral, neither overbought nor oversold. The STOCH value of 9.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$29.31B27.6121.03%82.10%6.35%
70
Outperform
$84.70B19.89-179.12%1.69%7.68%27.73%
WDWDC
63
Neutral
$22.75B12.4028.45%0.16%21.22%
63
Neutral
$26.87B23.615.11%3.55%3.42%-37.17%
HPHPQ
61
Neutral
$24.23B9.9484.33%4.49%2.08%-12.41%
STSTX
61
Neutral
$30.66B20.88-109.27%1.99%36.29%
50
Neutral
AU$1.51B2.03-28.25%3.29%16.21%-7.40%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAJPY
Canon
28.11
-0.65
-2.26%
HPQ
HP
25.62
-9.13
-26.27%
STX
Seagate Tech
142.01
38.79
37.58%
SMCI
Super Micro Computer
50.02
-38.90
-43.75%
WDC
Western Digital
64.64
5.93
10.10%
DELL
Dell Technologies
126.63
-11.66
-8.43%
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 09, 2025