Canon Inc.
Canon Inc. Fundamental Analysis
Canon Inc. (CAJ) shows weak financial fundamentals with a PE ratio of 14.17, profit margin of 6.05%, and ROE of 8.15%. The company generates $3972.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CAJ's fundamental strength across five key dimensions:
Efficiency Score
WeakCAJ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCAJ trades at attractive valuation levels.
Growth Score
ModerateCAJ shows steady but slowing expansion.
Financial Health Score
ExcellentCAJ maintains a strong and stable balance sheet.
Profitability Score
WeakCAJ struggles to sustain strong margins.
Key Financial Metrics
Is CAJ Expensive or Cheap?
P/E Ratio
CAJ trades at 14.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CAJ's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Canon Inc. at 1.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.78 times EBITDA. This is generally considered low.
How Well Does CAJ Make Money?
Net Profit Margin
For every $100 in sales, Canon Inc. keeps $6.05 as profit after all expenses.
Operating Margin
Core operations generate 8.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.15 in profit for every $100 of shareholder equity.
ROA
Canon Inc. generates $4.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canon Inc. generates limited operating cash flow of $258.75B, signaling weaker underlying cash strength.
Free Cash Flow
Canon Inc. generates weak or negative free cash flow of $72.99B, restricting financial flexibility.
FCF Per Share
Each share generates $71.87 in free cash annually.
FCF Yield
CAJ converts 2.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CAJ Stacks Against Its Sector Peers
| Metric | CAJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.17 | 35.19 | Better (Cheaper) |
| ROE | 8.15% | 1155.00% | Weak |
| Net Margin | 6.05% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.13 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 4.71 | Neutral |
| ROA | 4.79% | -314918.00% (disorted) | Weak |
CAJ outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canon Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta