Canon Inc. (JP:7751)
:7751
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Canon Inc.
(7751)
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Rating:61Neutral
Price Target:
¥4,677.00
▲(4.28% Upside)
Action:Reiterated
Date:04/25/26
The score is driven primarily by solid underlying profitability and a generally healthy balance sheet, partially offset by weaker cash-flow conversion and some bottom-line pressure. Technical conditions are the main drag as the stock trades below key moving averages with negative momentum, while valuation is supportive due to a moderate P/E and a ~4% dividend yield.
Positive Factors
Recurring consumables & services
Canon's durable 'razor‑and‑blades' model ties high-margin recurring consumables and service contracts to a large installed base. This creates predictable repeat revenue, margin stability and customer lock‑in, supporting cash generation and resilience over multiple quarters.
Negative Factors
Weakened cash‑flow conversion
A meaningful decline in free cash flow and weak operating cash flow coverage limits the firm's ability to de‑lever, invest or raise shareholder returns without relying on external financing. Persistent cash conversion shortfalls constrain strategic optionality over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables & services
Canon's durable 'razor‑and‑blades' model ties high-margin recurring consumables and service contracts to a large installed base. This creates predictable repeat revenue, margin stability and customer lock‑in, supporting cash generation and resilience over multiple quarters.
Read all positive factors
Canon Inc. (7751) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.16T
Dividend Yield3.27%
Average Volume (3M)2.84M
Price to Earnings (P/E)12.4
Beta (1Y)0.68
Revenue Growth1.75%
EPS Growth93.78%
CountryJP
Employees111,733
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)345.57
Shares Outstanding1,333,763,400
10 Day Avg. Volume2,997,670
30 Day Avg. Volume2,837,936
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.20
Price to Sales (P/S)0.91
P/FCF Ratio19.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,900.00Price Target Upside9.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)363.24
Revenue Forecast (FY)¥4.74T
Canon Inc. Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1933, Canon Inc. is a global enterprise specializing in the production and sale of a broad spectrum of imaging, optical, and industrial solutions. Its primary product lines encompass office multifunction devices (MF...
How the Company Makes Money
Canon primarily makes money by selling hardware systems and earning ongoing revenue from recurring consumables and services attached to that installed base. A major profit engine is the “razor-and-blades” dynamic in printing: Canon sells office an...
Canon Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.66T | 4.62T | 4.51T | 4.18T | 4.03T | 3.51T |
| Gross Profit | 2.17T | 2.16T | 2.14T | 1.97T | 1.83T | 1.63T |
| EBITDA | 709.00B | 728.60B | 540.37B | 631.71B | 579.98B | 524.60B |
| Net Income | 308.13B | 332.05B | 160.03B | 264.51B | 243.96B | 214.72B |
Balance Sheet | ||||||
| Total Assets | 6.24T | 6.14T | 5.77T | 5.42T | 5.10T | 4.75T |
| Cash, Cash Equivalents and Short-Term Investments | 651.33B | 618.43B | 506.34B | 405.14B | 373.01B | 404.77B |
| Total Debt | 1.23T | 946.16B | 663.50B | 517.32B | 417.41B | 320.97B |
| Total Liabilities | 2.58T | 2.36T | 2.12T | 1.81T | 1.75T | 1.65T |
| Stockholders Equity | 3.43T | 3.49T | 3.38T | 3.35T | 3.11T | 2.87T |
Cash Flow | ||||||
| Free Cash Flow | 155.70B | 213.74B | 369.83B | 220.88B | 74.08B | 273.68B |
| Operating Cash Flow | 428.47B | 475.90B | 606.83B | 451.19B | 262.60B | 451.03B |
| Investing Cash Flow | -243.05B | -237.45B | -297.32B | -275.37B | -180.82B | -207.26B |
| Financing Cash Flow | -282.80B | -179.22B | -226.00B | -156.73B | -146.84B | -267.37B |
Canon Inc. Technical Analysis
Negative
4485.00
Price Trends
4280.16
Positive
4434.57
Negative
4442.68
Negative
Market Momentum
20.55
Negative
50.90
Neutral
66.25
Neutral
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 4485 is above the 20-day moving average (MA) of 4309.50, above the 50-day MA of 4280.16, and above the 200-day MA of 4442.68, indicating a neutral trend. The MACD of 20.55 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 66.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥101.85B | 13.88 | ― | 4.76% | 1.01% | 81.46% | |
78 Outperform | ¥109.52B | 11.80 | 22.46% | 4.06% | -4.92% | 94.42% | |
70 Outperform | ¥59.46B | 14.25 | ― | 4.01% | 0.34% | 9.40% | |
63 Neutral | ¥879.86B | 49.32 | 6.07% | 3.69% | 3.69% | -66.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥4.16T | 12.41 | ― | 3.27% | 1.75% | 93.78% | |
53 Neutral | ¥166.48B | -71.60 | -6.21% | 1.61% | -1.34% | -107.63% |
* Technology Sector Average
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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.