Canon (CAJPY) AI Stock Analysis

• Market Cap: $30.39B
• Dividend Yield: 2.88%
• Average Volume (3M): 5.33K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.57
• Revenue Growth: 3.42%
• EPS Growth: -37.17%
• Country: US
• Employees: 111,733
• Sector: Technology
• Sector Strength: 67
• Industry: Computer Hardware
• EPS (TTM): -0.38
• Shares Outstanding: 1,333,763,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 5,327
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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 overall stock score reflects its strong financial health, driven by revenue growth, a stable balance sheet, and solid cash flow generation. However, technical analysis shows mixed signals with the stock trading below key moving averages and potential overbought conditions. The valuation suggests potential overvaluation with a high P/E ratio, but the dividend yield offers moderate income potential. These factors combine to give Canon a cautiously optimistic outlook in the competitive computer hardware industry.

Canon Business Overview & Revenue Model

Company Description

Canon Inc. is a Japanese multinational corporation that specializes in the manufacture of imaging and optical products, including cameras, camcorders, printers, photocopiers, and medical equipment. Headquartered in Tokyo, Japan, Canon operates through several business segments: Office, Imaging System, Medical System, and Industry & Others. The company is renowned for its innovation in imaging technologies and holds a significant presence in both consumer and professional markets globally.

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

Canon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 31.54 is above the 20-day moving average (MA) of 29.89, below the 50-day MA of 31.61, and below the 200-day MA of 32.28, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 93.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAJPY.

Canon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAJPY	71 Outperform	$30.39B	26.89	5.11%	2.88%	3.42%	-37.17%
SMCI	71 Outperform	$20.12B	14.04	32.21%	―	124.51%	87.78%
DELL	70 Outperform	$66.01B	14.83	-179.12%	1.97%	7.84%	42.63%
WDC	69 Neutral	$15.54B	8.47	28.45%	―	21.22%	―
STX	66 Neutral	$19.70B	13.45	-109.27%	3.05%	36.29%	―
HPQ	63 Neutral	$24.46B	9.32	84.33%	4.35%	1.03%	-18.56%
Sector *	60 Neutral	$10.93B	10.46	-6.70%	2.99%	7.54%	-12.22%