Canon (CAJPY) AI Stock Analysis

• Market Cap: $26.87B
• Dividend Yield: 3.55%
• Average Volume (3M): 3.53K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.46
• Revenue Growth: 3.42%
• EPS Growth: -37.17%
• Country: US
• Employees: 111,733
• Sector: Technology
• Sector Strength: 89
• Industry: Computer Hardware
• EPS (TTM): 0.54
• Shares Outstanding: 1,333,763,000
• 10 Day Avg. Volume: 10,592
• 30 Day Avg. Volume: 3,530
• PEG Ratio: 0.79
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.55
• 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

• Rating: 63 Neutral
• 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 Business Overview & Revenue Model

Company Description

Canon 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 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51T	4.18T	4.03T	3.51T	3.16T
Gross Profit	2.14T	1.97T	1.83T	1.63T	1.38T
EBITDA	540.37B	631.71B	579.98B	524.60B	358.96B
Net Income	160.03B	264.51B	243.96B	214.72B	83.32B
Balance Sheet
Total Assets	5.77T	5.42T	5.10T	4.75T	4.63T
Cash, Cash Equivalents and Short-Term Investments	506.34B	405.14B	373.01B	404.77B	407.75B
Total Debt	663.50B	517.32B	417.41B	320.97B	506.17B
Total Liabilities	2.12T	1.81T	1.75T	1.65T	1.84T
Stockholders Equity	3.38T	3.35T	3.11T	2.87T	2.58T
Cash Flow
Free Cash Flow	369.83B	220.88B	74.08B	273.68B	169.09B
Operating Cash Flow	606.83B	451.19B	262.60B	451.03B	333.81B
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 Price: 27.65
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCI	77 Outperform	$29.31B	27.61	21.03%	―	82.10%	6.35%
DELL	70 Outperform	$84.70B	19.89	-179.12%	1.69%	7.68%	27.73%
WDC	63 Neutral	$22.75B	12.40	28.45%	0.16%	21.22%	―
CAJPY	63 Neutral	$26.87B	23.61	5.11%	3.55%	3.42%	-37.17%
HPQ	61 Neutral	$24.23B	9.94	84.33%	4.49%	2.08%	-12.41%
STX	61 Neutral	$30.66B	20.88	-109.27%	1.99%	36.29%	―
Sector *	50 Neutral	AU$1.51B	2.03	-28.25%	3.29%	16.21%	-7.40%