Canon Inc. (7751) AI Stock Analysis

• Market Cap: ¥4.12T
• Dividend Yield: 3.27%
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.67
• Revenue Growth: 4.02%
• EPS Growth: -41.52%
• Country: JP
• Employees: 111,733
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 126.49
• Shares Outstanding: 1,333,763,400
• 10 Day Avg. Volume: 2,997,670
• 30 Day Avg. Volume: 2,837,936
• PEG Ratio: 0.10
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 19.59
• 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: ¥4,500.00
• Price Target Upside: 3.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 383.89
• Revenue Forecast (FY): ¥4.73T

• Rating: 69 Neutral
• Price Target: ¥5,130.00 ▲(17.74% Upside)
• Action: Downgraded Date: 01/31/26
• Date: Action: Downgraded 01/31/26

The score is primarily supported by solid financial performance (steady growth and stronger operating profit) and attractive valuation (moderate P/E and strong dividend). This is tempered by increased 2025 leverage and weaker/volatile free cash flow, plus mixed technical momentum (uptrend but negative MACD and weak stochastic).

Positive Factors

Recurring revenue from consumables and services

Canon’s business model generates durable recurring sales from consumables, service contracts and maintenance tied to a large installed hardware base. This creates predictable revenue streams, higher lifetime customer value and resilience versus pure transactional hardware cycles over the medium term.

Negative Factors

Step-up in total debt in 2025

The notable increase in total debt raises leverage risk compared with prior years, reducing financial flexibility. If elevated debt persists, it could constrain capital allocation choices, increase interest exposure and limit the company's ability to respond to industry downturns or fund strategic investments.

Canon Inc. Business Overview & Revenue Model

Company Description

Canon 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...

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Canon 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...

How the Company Makes Money

Canon generates revenue primarily through the sale of imaging and printing products, which include digital cameras, camcorders, and printers. The company has established multiple revenue streams: first, from the sale of hardware such as cameras an...

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Canon generates revenue primarily through the sale of imaging and printing products, which include digital cameras, camcorders, and printers. The company has established multiple revenue streams: first, from the sale of hardware such as cameras an...

Canon Inc. Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.62T	4.51T	4.18T	4.03T	3.51T
Gross Profit	2.16T	2.14T	1.97T	1.83T	1.63T
EBITDA	728.60B	540.37B	631.71B	579.98B	524.60B
Net Income	332.05B	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	618.43B	506.34B	405.14B	373.01B	404.77B
Total Debt	946.16B	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	213.74B	369.83B	220.88B	74.08B	273.68B
Operating Cash Flow	475.90B	606.83B	451.19B	262.60B	451.03B
Investing Cash Flow	-237.45B	-297.32B	-275.37B	-180.82B	-207.26B
Financing Cash Flow	-179.22B	-226.00B	-156.73B	-146.84B	-267.37B

Canon Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4357.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7751, the sentiment is Negative. The current price of 4357 is below the 20-day moving average (MA) of 4500.25, below the 50-day MA of 4644.34, and below the 200-day MA of 4403.68, indicating a bearish trend. The MACD of -108.45 indicates Positive momentum. The RSI at 27.42 is Positive, neither overbought nor oversold. The STOCH value of 8.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7751.

Canon Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6727	72 Outperform	¥98.46B	8.23	22.46%	4.06%	-8.93%	48.98%
7751	69 Neutral	¥4.12T	12.61	―	3.27%	4.02%	-41.52%
6724	67 Neutral	¥618.05B	9.47	6.07%	3.69%	0.48%	6.92%
6737	67 Neutral	¥87.00B	11.91	―	4.76%	1.81%	9.07%
6413	66 Neutral	¥70.76B	13.85	―	4.01%	0.31%	-11.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6588	55 Neutral	¥155.03B	33.83	-6.21%	1.61%	-4.91%	-136.94%