Canon Inc., together with its subsidiaries, manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment.
Canon Inc., together with its subsidiaries, manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates through four segments: Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. The Printing Business Unit segment offers office MFDs, document solutions, laser multifunction printers, laser printers, inkjet printers, image scanners, calculators, digital continuous feed presses, digital sheet-fed presses, and large format printers.
Canon Fundamentals Summary
How do Canon's earnings and revenue compare to its market cap?
Is 7751 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 7751?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for 7751. This is calculated by dividing 7751's market cap by their current
preferred multiple.
What is 7751's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
JP¥3.52t
7751 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: 7751 is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the JP Tech industry average (11.3x)
Price to Earnings Ratio vs Fair Ratio
What is 7751's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
7751 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
16.4x
Fair PE Ratio
14.1x
Price-To-Earnings vs Fair Ratio: 7751 is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).
Share Price vs Fair Value
What is the Fair Price of 7751 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 7751 (¥3413) is trading below our estimate of fair value (¥4479.3)
Significantly Below Fair Value: 7751 is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Canon forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score
1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
0.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7751's forecast earnings growth (0.3% per year) is above the savings rate (0.04%).
Earnings vs Market: 7751's earnings (0.3% per year) are forecast to grow slower than the JP market (8.6% per year).
High Growth Earnings: 7751's earnings are forecast to grow, but not significantly.
Revenue vs Market: 7751's revenue (1% per year) is forecast to grow slower than the JP market (4.3% per year).
High Growth Revenue: 7751's revenue (1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 7751's Return on Equity is forecast to be low in 3 years time (8%).
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Past Performance
How has Canon performed over the past 5 years?
Past Performance Score
4/6
Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-8.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7751 has high quality earnings.
Growing Profit Margin: 7751's current net profit margins (5.8%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: 7751's earnings have declined by 8.4% per year over the past 5 years.
Accelerating Growth: 7751's earnings growth over the past year (21.8%) exceeds its 5-year average (-8.4% per year).
Earnings vs Industry: 7751 earnings growth over the past year (21.8%) exceeded the Tech industry 15.8%.
Return on Equity
High ROE: 7751's Return on Equity (6.9%) is considered low.
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Financial Health
How is Canon's financial position?
Financial Health Score
6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: 7751's short term assets (¥2,173.8B) exceed its short term liabilities (¥1,178.8B).
Long Term Liabilities: 7751's short term assets (¥2,173.8B) exceed its long term liabilities (¥611.6B).
Debt to Equity History and Analysis
Debt Level: 7751 has more cash than its total debt.
Reducing Debt: 7751's debt to equity ratio has reduced from 21.4% to 9.4% over the past 5 years.
Debt Coverage: 7751's debt is well covered by operating cash flow (97.5%).
Interest Coverage: 7751 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Canon current dividend yield, its reliability and sustainability?
Dividend Score
2/6
Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
3.52%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 7751's dividend (3.52%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).
High Dividend: 7751's dividend (3.52%) is low compared to the top 25% of dividend payers in the JP market (3.61%).
Stability and Growth of Payments
Stable Dividend: 7751's dividend payments have been volatile in the past 10 years.
Growing Dividend: 7751's dividend payments have not increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (56%), 7751's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (99.7%), 7751's dividend payments are not well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Fujio Mitarai (87 yo)
26.92yrs
Tenure
JP¥457,000,000
Compensation
Mr. Fujio Mitarai has been the Chairman and Chief Executive Officer of Canon Inc. since March 31, 2006 and September 1995 respectively and served as its President and Chief Operating Officer since May 1,...
CEO Compensation Analysis
Compensation vs Market: Fujio's total compensation ($USD3.43M) is above average for companies of similar size in the JP market ($USD1.53M).
Compensation vs Earnings: Fujio's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: 7751's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: 7751's board of directors are considered experienced (4.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Canon Inc.'s employee growth, exchange listings and data sources
Key Information
Name: Canon Inc.
Ticker: 7751
Exchange: TSE
Founded: 1933
Industry: Technology Hardware, Storage and Peripherals
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/08/16 00:00
End of Day Share Price
2022/08/16 00:00
Earnings
2022/06/30
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.