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%)
We assign a fundamental rating of 6 out of 10 to CAJ. CAJ was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. While CAJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CAJ has a decent growth rate and is not valued too expensively.
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.
CAJ had positive earnings in each of the past 5 years.
CAJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.79%, CAJ is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.84%, CAJ belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CAJ has a better Return On Invested Capital (7.03%) than 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 14.98%.
| 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's Profit Margin of 6.05% is fine compared to the rest 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.
With a decent Operating Margin value of 8.77%, CAJ is doing good in the industry, outperforming 72.22% of the companies in the same industry.
CAJ's Operating Margin has been stable in the last couple of years.
CAJ has a better Gross Margin (45.34%) than 80.56% of its industry peers.
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
CAJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CAJ has less shares outstanding
Compared to 1 year ago, CAJ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.11 indicates that CAJ is not in any danger for 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.
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.
Looking at the Debt to FCF ratio, with a value of 4.03, CAJ belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CAJ has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.00, CAJ is doing good in 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.
The Current ratio of CAJ (1.58) is comparable to the rest of the industry.
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 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.
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.
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
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
A Price/Earnings ratio of 12.43 indicates a correct valuation of CAJ.
Compared to the rest of the industry, the Price/Earnings ratio of CAJ indicates a somewhat cheap valuation: CAJ is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAJ to the average of the S&P500 Index (27.30), we can say CAJ is valued rather cheaply.
The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of CAJ.
Based on the Price/Forward Earnings ratio, CAJ is valued a bit cheaper than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, CAJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
94.44% of the companies in the same industry are more expensive than CAJ, based on the Enterprise Value to EBITDA ratio.
CAJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAJ is 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
With a Yearly Dividend Yield of 4.10%, CAJ is a good candidate for dividend investing.
CAJ's Dividend Yield is rather good when compared to the industry average which is at 1.85. CAJ pays more dividend than 94.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 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-44.82%
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%