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Canon Inc. (JP:7751)
:7751
Japanese Market
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Canon Inc. (7751) AI Stock Analysis

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JP:7751

Canon Inc.

(7751)

Rating:70Outperform
Price Target:
¥4,797.00
▲(9.82% Upside)
Canon Inc.'s overall stock score is driven by its strong financial stability and solid dividend yield, which provide a buffer against valuation concerns. However, mixed technical indicators and challenges in revenue and cash flow growth highlight areas for improvement. The absence of recent earnings call data and corporate events limits further insights.

Canon Inc. (7751) vs. iShares MSCI Japan ETF (EWJ)

Canon Inc. Business Overview & Revenue Model

Company DescriptionCanon Inc., together with its subsidiaries, manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates through four segments: Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. The Printing Business Unit segment offers office MFDs, document solutions, laser multifunction printers, laser printers, inkjet 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 multimedia 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 Industry and Others Business Unit segment provides semiconductor lithography equipment, flat panel display lithography equipment, vacuum thin-film deposition equipment, organic light-emitting diode display manufacturing equipment, die bonders, handy terminals, and document scanners. The company also provides maintenance services; and supplies replacement drums, parts, toners, and papers. It sells its products under the Canon brand through subsidiaries or independent distributors to dealers and retail outlets, as well as directly to end-users globally. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyCanon Inc. generates revenue through the sale of its diverse range of products across its various business segments. The Office Business Unit is a significant revenue stream, driven by the sale of office multifunction devices, laser printers, and other office solutions. The Imaging System Business Unit contributes through digital cameras, camcorders, and inkjet printers. The Medical System Business Unit provides medical imaging products and solutions, including diagnostic equipment, which is another key revenue source. Additionally, Canon's Industry and Others segment includes semiconductor lithography equipment and other industrial products. Canon also benefits from aftermarket sales such as consumables, service, and maintenance contracts. Strategic partnerships and collaborations in areas like medical equipment and industrial technologies further bolster its financial performance.

Canon Inc. Financial Statement Overview

Summary
Canon Inc. demonstrates strong financial stability with efficient cost management and a solid balance sheet. However, declining revenue growth and negative free cash flow growth pose challenges. The company needs to address these issues to sustain long-term profitability and growth.
Income Statement
75
Positive
Canon Inc. shows a stable gross profit margin around 47%, indicating efficient cost management. However, the net profit margin has decreased to 3.76% in TTM, reflecting challenges in converting revenue into profit. The revenue growth rate is negative at -0.60% TTM, suggesting a decline in sales. EBIT and EBITDA margins are healthy, but the recent decline in revenue growth is a concern.
Balance Sheet
80
Positive
Canon maintains a strong balance sheet with a low debt-to-equity ratio of 0.32 TTM, indicating conservative leverage. The return on equity is modest at 5.14%, showing moderate profitability. The equity ratio is healthy, suggesting a stable financial structure with a good proportion of equity financing.
Cash Flow
70
Positive
The operating cash flow to net income ratio is 0.31 TTM, indicating adequate cash generation relative to net income. However, free cash flow growth is negative at -22.84% TTM, highlighting potential cash flow challenges. The free cash flow to net income ratio remains strong at 0.61, showing good cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.55T4.51T4.18T4.03T3.51T3.16T
Gross Profit2.15T2.14T1.97T1.83T1.63T1.38T
EBITDA638.88B540.37B631.71B579.98B524.60B358.96B
Net Income166.12B160.03B264.51B243.96B214.72B83.32B
Balance Sheet
Total Assets5.97T5.77T5.42T5.10T4.75T4.63T
Cash, Cash Equivalents and Short-Term Investments721.99B506.34B405.14B373.01B404.77B407.75B
Total Debt1.12T663.50B517.32B417.41B320.97B506.17B
Total Liabilities2.49T2.12T1.81T1.75T1.65T1.84T
Stockholders Equity3.21T3.38T3.35T3.11T2.87T2.58T
Cash Flow
Free Cash Flow282.30B369.83B220.88B74.08B273.68B169.09B
Operating Cash Flow523.74B606.83B451.19B262.60B451.03B333.81B
Investing Cash Flow-272.54B-297.32B-275.37B-180.82B-207.26B-155.44B
Financing Cash Flow-106.41B-226.00B-156.73B-146.84B-267.37B-183.45B

Canon Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4368.00
Price Trends
50DMA
4216.07
Positive
100DMA
4248.62
Positive
200DMA
4542.60
Negative
Market Momentum
MACD
36.86
Positive
RSI
55.82
Neutral
STOCH
36.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7751, the sentiment is Positive. The current price of 4368 is above the 20-day moving average (MA) of 4362.10, above the 50-day MA of 4216.07, and below the 200-day MA of 4542.60, indicating a neutral trend. The MACD of 36.86 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7751.

Canon Inc. Risk Analysis

Canon Inc. disclosed 20 risk factors in its most recent earnings report. Canon Inc. 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 Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥4.20T24.30
3.55%4.76%-39.64%
61
Neutral
$35.45B8.20-10.60%1.91%8.56%-9.51%
$4.10B14.765.27%3.62%
$655.30M24.5413.28%2.67%
€902.60M6.4823.27%
75
Outperform
¥108.98B15.18
2.67%7.82%3.26%
71
Outperform
¥94.97B24.58
7.02%-0.61%-16.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7751
Canon Inc.
4,368.00
-429.11
-8.95%
SEKEF
Seiko Epson
13.00
-4.48
-25.63%
WACMF
Wacom Co
4.98
0.45
9.93%
DE:TECA
Toshiba Tec Corp.
16.00
-4.69
-22.67%
JP:6737
EIZO Corp.
2,228.00
112.81
5.33%
JP:7739
Canon Electronics Inc.
2,684.00
515.45
23.77%
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: Aug 29, 2025