CANON INC-SPONS ADR (CAJ) Stock Fundamental Analysis
USA - NYSE:CAJ - US1380063099 - ADR
21.63 USD
-0.03 (-0.14%)
21.55 USD
-0.08 (-0.37%)
CAJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Technology Hardware, Storage & Peripherals industry. While CAJ has a great profitability rating, there are some minor concerns on its financial health. CAJ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CAJ had positive earnings in the past year.
In the past year CAJ had a positive cash flow from operations.
In the past 5 years CAJ has always been profitable.
In the past 5 years CAJ always reported a positive cash flow from operatings.
1.2 Ratios
CAJ has a better Return On Assets (4.79%) than 69.44% of its industry peers.
CAJ has a Return On Equity of 7.84%. This is amongst the best in the industry. CAJ outperforms 83.33% of its industry peers.
CAJ has a Return On Invested Capital of 7.03%. This is in the better half of the industry: CAJ outperforms 66.67% of its industry peers.
CAJ had an Average Return On Invested Capital over the past 3 years of 9.14%. This is significantly below the industry average of 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.84% | ||
| ROIC | 7.03% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.14%
ROIC(5y)N/A
1.3 Margins
CAJ has a Profit Margin of 6.05%. This is in the better half of the industry: CAJ outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of CAJ has remained more or less at the same level.
CAJ has a better Operating Margin (8.77%) than 72.22% of its industry peers.
In the last couple of years the Operating Margin of CAJ has remained more or less at the same level.
Looking at the Gross Margin, with a value of 45.34%, CAJ belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
In the last couple of years the Gross Margin of CAJ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.77% | ||
| PM (TTM) | 6.05% | ||
| GM | 45.34% |
OM growth 3Y21.78%
OM growth 5Y-0.43%
PM growth 3Y20.28%
PM growth 5Y0.41%
GM growth 3Y0.39%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAJ is creating some value.
CAJ has less shares outstanding than it did 1 year ago.
CAJ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.11 indicates that CAJ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, CAJ is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
CAJ has a debt to FCF ratio of 4.03. This is a neutral value as CAJ would need 4.03 years to pay back of all of its debts.
CAJ's Debt to FCF ratio of 4.03 is amongst the best of the industry. CAJ outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that CAJ is not too dependend on debt financing.
The Debt to Equity ratio of CAJ (0.00) is better than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.98
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.58 indicates that CAJ should not have too much problems paying its short term obligations.
The Current ratio of CAJ (1.58) is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that CAJ may have some problems paying its short term obligations.
CAJ has a worse Quick ratio (0.99) than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.27% over the past year.
Measured over the past 5 years, CAJ shows a small growth in Earnings Per Share. The EPS has been growing by 1.21% on average per year.
CAJ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
The Revenue has been decreasing by -0.24% on average over the past years.
EPS 1Y (TTM)15.27%
EPS 3Y26.5%
EPS 5Y1.21%
EPS Q2Q%45.15%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y3.91%
Revenue growth 5Y-0.24%
Sales Q2Q%21.11%
3.2 Future
The Earnings Per Share is expected to grow by 3.68% on average over the next years.
Based on estimates for the next years, CAJ will show a small growth in Revenue. The Revenue will grow by 1.78% on average per year.
EPS Next Y9.15%
EPS Next 2Y4.87%
EPS Next 3Y3.68%
EPS Next 5YN/A
Revenue Next Year3.16%
Revenue Next 2Y2.4%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.43, CAJ is valued correctly.
Based on the Price/Earnings ratio, CAJ is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
CAJ is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of CAJ.
CAJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAJ is cheaper than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, CAJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAJ indicates a rather cheap valuation: CAJ is cheaper than 94.44% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CAJ is valued a bit cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.24 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)10.25
EPS Next 2Y4.87%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
CAJ has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 2.15, CAJ pays a better dividend. On top of this CAJ pays more dividend than 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CAJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
The dividend of CAJ decreases each year by -9.14%.
CAJ has been paying a dividend for over 5 years, so it has already some track record.
CAJ has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.14%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
48.91% of the earnings are spent on dividend by CAJ. This is a bit on the high side, but may be sustainable.
DP48.91%
EPS Next 2Y4.87%
EPS Next 3Y3.68%
21.63
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners0.04%
Inst Owner Change-0.21%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.97B
Analysts66.36
Price Target24.23 (12.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend120
Dividend Growth(5Y)-9.14%
DP48.91%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.19%
Min EPS beat(2)-26.83%
Max EPS beat(2)12.46%
EPS beat(4)1
Avg EPS beat(4)-8.79%
Min EPS beat(4)-26.83%
Max EPS beat(4)12.46%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-1.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)2.45%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.33%
PT rev (3m)-9.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)-6.46%
EPS NY rev (3m)-9.78%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.72 | ||
| P/FCF | 39.24 | ||
| P/OCF | 11.07 | ||
| P/B | 0.93 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)1.74
EY8.04%
EPS(NY)1.9
Fwd EY8.77%
FCF(TTM)0.55
FCFY2.55%
OCF(TTM)1.95
OCFY9.03%
SpS30
BVpS23.17
TBVpS13.84
PEG (NY)1.36
PEG (5Y)10.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.84% | ||
| ROCE | N/A | ||
| ROIC | 7.03% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 12.36% | ||
| OM | 8.77% | ||
| PM (TTM) | 6.05% | ||
| GM | 45.34% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.14%
ROIC(5y)N/A
ROICexc(3y)5.66%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y27.22%
ROICexcg growth 5Y-1.65%
ROICexc growth 3Y26.88%
ROICexc growth 5Y-0.66%
OM growth 3Y21.78%
OM growth 5Y-0.43%
PM growth 3Y20.28%
PM growth 5Y0.41%
GM growth 3Y0.39%
GM growth 5Y-1.48%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 83.24% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 30.36% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.11 |
F-Score7
WACC7.19%
ROIC/WACC0.98
Cap/Depr(3y)78.57%
Cap/Depr(5y)80.53%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)120.26%
Profit Quality(5y)108.77%
High Growth Momentum
Growth
EPS 1Y (TTM)15.27%
EPS 3Y26.5%
EPS 5Y1.21%
EPS Q2Q%45.15%
EPS Next Y9.15%
EPS Next 2Y4.87%
EPS Next 3Y3.68%
EPS Next 5YN/A
Revenue 1Y (TTM)14.75%
Revenue growth 3Y3.91%
Revenue growth 5Y-0.24%
Sales Q2Q%21.11%
Revenue Next Year3.16%
Revenue Next 2Y2.4%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
EBIT growth 1Y25.36%
EBIT growth 3Y26.54%
EBIT growth 5Y-0.67%
EBIT Next Year22170%
EBIT Next 3Y517.9%
EBIT Next 5YN/A
FCF growth 1Y-72.93%
FCF growth 3Y-19.65%
FCF growth 5Y-28.67%
OCF growth 1Y-41.78%
OCF growth 3Y-9.85%
OCF growth 5Y-14.96%