CANON INC-SPONS ADR (CAJ)
US1380063099 - ADR
Taking everything into account, CAJ scores 6 out of 10 in our fundamental rating. CAJ was compared to 32 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CAJ was profitable.
In the past year CAJ had a positive cash flow from operations.
Each year in the past 5 years CAJ has been profitable.
CAJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAJ has a Return On Assets of 4.79%. This is in the better half of the industry: CAJ outperforms 69.44% of its industry peers.
CAJ has a better Return On Equity (7.84%) than 83.33% of its industry peers.
With a decent Return On Invested Capital value of 7.03%, CAJ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CAJ had an Average Return On Invested Capital over the past 3 years of 9.14%. This is significantly below the industry average of 14.47%.
| 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
The Profit Margin of CAJ (6.05%) is better than 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.
The Operating Margin of CAJ (8.77%) is better 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.
The number of shares outstanding for CAJ has been reduced compared to 5 years ago.
Compared to 1 year ago, CAJ has a worse debt to assets ratio.
2.2 Solvency
CAJ has an Altman-Z score of 3.11. This indicates that CAJ is financially healthy and has little risk of bankruptcy at the moment.
CAJ has a Altman-Z score of 3.11. This is in the better half of the industry: CAJ outperforms 72.22% of its industry peers.
The Debt to FCF ratio of CAJ is 4.03, which is a neutral value as it means it would take CAJ, 4.03 years of fcf income to pay off all of its debts.
CAJ has a Debt to FCF ratio of 4.03. This is amongst the best in 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.
Looking at the Debt to Equity ratio, with a value of 0.00, CAJ is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
| 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.
CAJ has a Current ratio (1.58) which is in line with its industry peers.
CAJ has a Quick Ratio of 1.58. This is a bad value and indicates that CAJ is not financially healthy enough and could expect problems in meeting its short term obligations.
CAJ's Quick ratio of 0.99 is on the low side compared to the rest of the industry. CAJ is outperformed by 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.
CAJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.21% yearly.
The Revenue has grown by 14.75% in the past year. This is quite good.
CAJ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.24% yearly.
EPS 1Y (TTM)15.27%
EPS 3Y26.5%
EPS 5Y1.21%
EPS growth Q2Q45.15%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y3.91%
Revenue growth 5Y-0.24%
Revenue growth Q2Q21.11%
3.2 Future
Based on estimates for the next years, CAJ will show a small growth in Earnings Per Share. The EPS will grow by 3.68% on average per year.
CAJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.78% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.43, the valuation of CAJ can be described as correct.
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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.80.
CAJ is valuated reasonably with a Price/Forward Earnings ratio of 11.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAJ indicates a somewhat cheap valuation: CAJ is cheaper than 72.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CAJ to the average of the S&P500 Index (21.27), we can say CAJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAJ is valued cheaper than 94.44% of the companies 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 2.55, 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 2.40, 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%
CANON INC-SPONS ADR
NYSE:CAJ (3/6/2023, 7:04:00 PM)
After market: 21.55 -0.08 (-0.37%)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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.36
PEG (5Y)10.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.77% | ||
| PM (TTM) | 6.05% | ||
| GM | 45.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.27%
EPS 3Y26.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.75%
Revenue growth 3Y3.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y