Canon (CAJPY) AI Stock Analysis

• Market Cap: $26.91B
• Dividend Yield: 3.01%
• Average Volume (3M): 6.39K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.37
• Revenue Growth: 4.88%
• EPS Growth: -39.81%
• Country: US
• Employees: 111,733
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.82
• Shares Outstanding: 1,333,763,400
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 6,389
• PEG Ratio: 0.09
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 18.69
• Enterprise Value/Market Cap: 159.93
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 6.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.45
• Revenue Forecast (FY): $30.48B

• Rating: 72 Outperform
• Price Target: $30.00 ▲(2.67% Upside)
• Action: Upgraded Date: 01/31/26
• Date: Action: Upgraded 01/31/26

The score is driven primarily by solid financial performance with a strong 2025 profitability rebound and supportive segment/geography KPI trends, offset by weaker cash conversion and a rising-leverage trajectory. Valuation is a clear positive (low P/E and ~3% yield), while technical signals are only moderately constructive due to slightly negative MACD and otherwise neutral momentum indicators.

Positive Factors

Recurring revenue mix

Canon's business model combines hardware sales with recurring consumables and service/solution contracts. That installed-base-driven revenue mix supports predictable, repeatable cash flows, customer lock-in, and pricing power across office, imaging and production segments.

Negative Factors

Weaker cash conversion

FCF declining ~20% and covering under half of net income raises concerns about earnings quality and cash conversion. If working capital or capex needs remain elevated, capacity to fund buybacks, dividends or rapid deleveraging is constrained over the medium term.

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...

Read more

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...

How the Company Makes Money

Canon primarily generates revenue through the sale of hardware, recurring consumables, and service/solution contracts across its major businesses. In its office business, Canon sells multifunction devices and printers through direct sales and chan...

Read more

Canon primarily generates revenue through the sale of hardware, recurring consumables, and service/solution contracts across its major businesses. In its office business, Canon sells multifunction devices and printers through direct sales and chan...

Canon Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.85T	4.51T	4.18T	4.03T	3.51T
Gross Profit	2.27T	2.14T	1.97T	1.83T	1.63T
EBITDA	763.92B	540.37B	631.71B	579.98B	524.60B
Net Income	348.15B	160.03B	264.51B	243.96B	214.72B
Balance Sheet
Total Assets	6.14T	5.77T	5.42T	5.10T	4.75T
Cash, Cash Equivalents and Short-Term Investments	618.85B	506.34B	405.14B	373.01B	404.77B
Total Debt	1.03T	663.50B	517.32B	417.41B	320.97B
Total Liabilities	2.36T	2.12T	1.81T	1.75T	1.65T
Stockholders Equity	3.49T	3.38T	3.35T	3.11T	2.87T
Cash Flow
Free Cash Flow	224.10B	369.83B	220.88B	74.08B	273.68B
Operating Cash Flow	498.97B	606.83B	451.19B	262.60B	451.03B
Investing Cash Flow	-248.96B	-297.32B	-275.37B	-180.82B	-207.26B
Financing Cash Flow	-187.91B	-226.00B	-156.73B	-146.84B	-267.37B

Canon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.22
• 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 Negative. The current price of 29.22 is above the 20-day moving average (MA) of 27.68, below the 50-day MA of 29.29, and below the 200-day MA of 29.25, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 is Negative, 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
WDC	79 Outperform	$100.01B	8.79	64.18%	0.18%	-16.35%	316.56%
CAJPY	72 Outperform	$26.91B	12.03	10.15%	3.01%	4.88%	-39.81%
STX	70 Outperform	$93.63B	26.06	-889.39%	1.02%	31.56%	106.00%
NTAP	64 Neutral	$20.39B	14.44	116.57%	1.89%	2.64%	4.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMCI	59 Neutral	$13.91B	10.90	13.33%	―	12.22%	-48.34%
HPQ	57 Neutral	$17.84B	8.26	1135.29%	5.09%	4.09%	-5.77%