Canon Electronics Inc. (JP:7739)
:7739
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Canon Electronics Inc.
(7739)
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Rating:76Outperform
Price Target:
¥4,096.00
▲(12.37% Upside)
Action:UpgradedDate:01/31/26
The score is primarily driven by strong financial resilience (near-zero leverage and solid overall financial quality) tempered by recent margin and cash flow conversion softness. Technicals are broadly supportive due to an established uptrend, but momentum signals are mixed. Valuation is a modest headwind given the P/E level and only moderate dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and a large equity base give Canon Electronics durable financial resilience and flexibility. This supports multi‑year investment, withstands demand downturns, and preserves strategic optionality for capex or M&A, reducing long‑term solvency risk.
Negative Factors
Margin compression risk
Declining margins reduce the firm’s ability to convert revenue into sustainable profits, pressuring returns and reinvestment capacity. If driven by structural cost inflation or adverse product mix, margin pressure could persist and materially constrain long‑term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a large equity base give Canon Electronics durable financial resilience and flexibility. This supports multi‑year investment, withstands demand downturns, and preserves strategic optionality for capex or M&A, reducing long‑term solvency risk.
Read all positive factors
Canon Electronics Inc. (7739) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥148.53B
Dividend Yield1.92%
Average Volume (3M)69.57K
Price to Earnings (P/E)22.9
Beta (1Y)0.71
Revenue Growth7.46%
EPS Growth-8.01%
CountryJP
Employees5,394
SectorIndustrials
Sector Strength72
IndustryComputer Hardware
Share Statistics
EPS (TTM)39.13
Shares Outstanding42,206,540
10 Day Avg. Volume103,040
30 Day Avg. Volume69,570
Financial Highlights & Ratios
PEG Ratio-1.52
Price to Book (P/B)1.17
Price to Sales (P/S)1.43
P/FCF Ratio27.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Canon Electronics Inc. Business Overview & Revenue Model
Company Description
Canon Electronics Inc. develops, produces, and sells precision machines and instruments, and electric and electronic machines and instruments in Japan and internationally. The company also provides information devices; and software for computers a...
How the Company Makes Money
Canon Electronics Inc. generates revenue primarily through the sale of its electronic components, particularly image sensors and lens modules, which are essential for digital cameras, smartphones, and other imaging devices. The company also earns ...
Canon Electronics Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.03B | 104.42B | 100.66B | 96.32B | 96.51B | 82.61B |
| Gross Profit | 20.31B | 18.97B | 19.68B | 19.48B | 19.40B | 17.81B |
| EBITDA | 13.23B | 11.74B | 13.42B | 12.42B | 11.70B | 9.59B |
| Net Income | 7.23B | 6.50B | 7.66B | 6.57B | 6.92B | 5.39B |
Balance Sheet | ||||||
| Total Assets | 143.13B | 147.08B | 141.89B | 131.15B | 137.49B | 126.27B |
| Cash, Cash Equivalents and Short-Term Investments | 29.91B | 58.47B | 30.21B | 27.48B | 24.76B | 23.63B |
| Total Debt | 758.00M | 639.00M | 829.00M | 172.00M | 4.33B | 3.53B |
| Total Liabilities | 20.98B | 20.12B | 20.15B | 17.30B | 26.19B | 23.37B |
| Stockholders Equity | 121.96B | 126.77B | 121.57B | 113.69B | 107.63B | 100.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.43B | 10.91B | 7.03B | -839.00M | -2.79B |
| Operating Cash Flow | 0.00 | 7.40B | 12.69B | 10.20B | 4.16B | 2.74B |
| Investing Cash Flow | 0.00 | -2.73B | -9.46B | -3.31B | -1.79B | -3.58B |
| Financing Cash Flow | 0.00 | -2.85B | -2.62B | -2.46B | -1.98B | -929.00M |
Canon Electronics Inc. Technical Analysis
Positive
3645.00
Price Trends
3628.30
Positive
3494.84
Positive
3061.74
Positive
Market Momentum
1.61
Positive
55.63
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7739, the sentiment is Positive. The current price of 3645 is above the 20-day moving average (MA) of 3628.00, above the 50-day MA of 3628.30, and above the 200-day MA of 3061.74, indicating a bullish trend. The MACD of 1.61 indicates Positive momentum. The RSI at 55.63 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7739.
Canon Electronics Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥148.53B | 22.89 | ― | 1.92% | 7.46% | -8.01% | |
69 Neutral | ¥4.27T | 12.61 | ― | 3.27% | 4.02% | -41.52% | |
67 Neutral | ¥669.26B | 9.47 | 6.07% | 3.69% | 0.48% | 6.92% | |
67 Neutral | ¥87.04B | 11.91 | ― | 4.76% | 1.81% | 9.07% | |
66 Neutral | ¥73.79B | 13.85 | ― | 4.01% | 0.31% | -11.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | ¥158.72B | 33.83 | -6.21% | 1.61% | -4.91% | -136.94% |
* Industrials Sector Average
JP:7739
Canon Electronics Inc.
3,635.00
1,454.40
66.70%
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Canon Inc.
4,425.00
170.20
4.00%
Canon Electronics Inc. Corporate Events
Canon Electronics Posts Higher Sales but Lower Profit as It Prepares for Canon Inc. Buyout and Delisting
Jan 28, 2026
Canon Electronics Inc. reported a modest 3.7% rise in net sales to ¥104.4 billion for the fiscal year ended 31 December 2025, but profitability weakened as operating profit fell 13.6% to ¥9.0 billion and profit attributable to owners of ...
Canon Inc. Completes Tender Offer to Boost Stake in Canon Electronics
Jan 20, 2026
Canon Inc., the controlling shareholder of Canon Electronics Inc., has completed a tender offer for Canon Electronics’ common shares that ran from December 1, 2025 to January 19, 2026, following a board resolution in late November. The tende...
Canon Electronics Sets Record Date for Potential Extraordinary Shareholders’ Meeting Tied to Canon Inc. Tender Offer
Jan 9, 2026
Canon Electronics Inc., a Japan-listed electronics manufacturer in the Canon Group, has set January 27, 2026 as the record date to determine shareholders eligible to vote at an extraordinary general meeting of shareholders expected around late Mar...
Canon Electronics Inc. Announces No Year-End Dividend Amid Tender Offer
Nov 28, 2025
Canon Electronics Inc. announced that it will not distribute year-end dividends for the fiscal year ending December 31, 2025, contingent upon the successful completion of a tender offer by Canon Inc. to make Canon Electronics a wholly owned subsid...
Canon Electronics Supports Canon Inc.’s Tender Offer for Full Ownership
Nov 28, 2025
Canon Electronics Inc. has announced its board of directors’ decision to support a tender offer by its controlling shareholder, Canon Inc., to acquire all remaining shares and make Canon Electronics a wholly owned subsidiary. This move is ex...
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.