Canon Inc.
Canon Inc. Fundamental Analysis
Canon Inc. (CAJPY) shows moderate financial fundamentals with a PE ratio of 12.72, profit margin of 7.19%, and ROE of 10.21%. The company generates $4563.6B in annual revenue with moderate year-over-year growth of 7.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 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 CAJPY's fundamental strength across five key dimensions:
Efficiency Score
WeakCAJPY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCAJPY trades at attractive valuation levels.
Growth Score
ModerateCAJPY shows steady but slowing expansion.
Financial Health Score
ExcellentCAJPY maintains a strong and stable balance sheet.
Profitability Score
WeakCAJPY struggles to sustain strong margins.
Key Financial Metrics
Is CAJPY Expensive or Cheap?
P/E Ratio
CAJPY trades at 12.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CAJPY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Canon Inc. at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.19 times EBITDA. This is generally considered low.
How Well Does CAJPY Make Money?
Net Profit Margin
For every $100 in sales, Canon Inc. keeps $7.19 as profit after all expenses.
Operating Margin
Core operations generate 9.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.21 in profit for every $100 of shareholder equity.
ROA
Canon Inc. generates $5.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canon Inc. produces operating cash flow of $475.45B, showing steady but balanced cash generation.
Free Cash Flow
Canon Inc. produces free cash flow of $215.31B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $245.05 in free cash annually.
FCF Yield
CAJPY converts 5.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CAJPY Stacks Against Its Sector Peers
| Metric | CAJPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.72 | 35.87 | Better (Cheaper) |
| ROE | 10.21% | 1175.00% | Weak |
| Net Margin | 7.19% | -137082.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.54 | 4.81 | Neutral |
| ROA | 5.44% | -312683.00% (disorted) | Weak |
CAJPY 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
38.90%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
41.73%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
87.36%
Industry Style: Growth, Innovation, High Beta
High Growth