TSE:7751

Stock Analysis Report

Executive Summary

Canon Inc. manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Canon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7751 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

7751

-0.7%

JP Tech

-0.8%

JP Market


1 Year Return

-16.1%

7751

-7.2%

JP Tech

3.9%

JP Market

Return vs Industry: 7751 underperformed the JP Tech industry which returned -7.2% over the past year.

Return vs Market: 7751 underperformed the JP Market which returned 3.9% over the past year.


Shareholder returns

7751IndustryMarket
7 Day-2.5%-0.7%-0.8%
30 Day-10.8%-7.5%-3.1%
90 Day-10.2%-2.4%-1.7%
1 Year-11.7%-16.1%-3.8%-7.2%6.6%3.9%
3 Year-4.6%-17.0%4.1%-5.6%18.2%10.3%
5 Year-12.6%-30.3%4.0%-11.8%26.6%13.4%

Price Volatility Vs. Market

How volatile is Canon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Canon undervalued compared to its fair value and its price relative to the market?

23.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7751 (¥2724) is trading above our estimate of fair value (¥2591.82)

Significantly Below Fair Value: 7751 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7751 is poor value based on its PE Ratio (23.3x) compared to the Tech industry average (18.2x).

PE vs Market: 7751 is poor value based on its PE Ratio (23.3x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 7751 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 7751 is overvalued based on its PB Ratio (1.1x) compared to the JP Tech industry average (1.1x).


Next Steps

Future Growth

How is Canon forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7751's forecast earnings growth (8.5% per year) is above the savings rate (-0.09%).

Earnings vs Market: 7751's earnings (8.5% per year) are forecast to grow slower than the JP market (9.8% per year).

High Growth Earnings: 7751's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7751's revenue (0.8% per year) is forecast to grow slower than the JP market (3.5% per year).

High Growth Revenue: 7751's revenue (0.8% 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 (6.6%).


Next Steps

Past Performance

How has Canon performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7751 has high quality earnings.

Growing Profit Margin: 7751's current net profit margins (3.5%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 7751's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: 7751's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7751 had negative earnings growth (-50.5%) over the past year, making it difficult to compare to the Tech industry average (-14.9%).


Return on Equity

High ROE: 7751's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canon's financial position?


Financial Position Analysis

Short Term Liabilities: 7751's short term assets (¥1,846.0B) exceed its short term liabilities (¥960.5B).

Long Term Liabilities: 7751's short term assets (¥1,846.0B) exceed its long term liabilities (¥915.9B).


Debt to Equity History and Analysis

Debt Level: 7751's debt to equity ratio (13.8%) is considered satisfactory.

Reducing Debt: 7751's debt to equity ratio has increased from 0.07% to 13.8% over the past 5 years.

Debt Coverage: 7751's debt is well covered by operating cash flow (89.8%).

Interest Coverage: 7751 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 7751 has a high level of physical assets or inventory.

Debt Coverage by Assets: 7751's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

What is Canon's current dividend yield, its reliability and sustainability?

5.87%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%1.4%markettop25%3.1%industryaverage3.6%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: 7751's dividend (5.87%) is higher than the bottom 25% of dividend payers in the JP market (1.39%).

High Dividend: 7751's dividend (5.87%) is in the top 25% of dividend payers in the JP market (3.1%)


Stability and Growth of Payments

Stable Dividend: 7751's dividends per share have been stable in the past 10 years.

Growing Dividend: 7751's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (136.8%), 7751's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Fujio Mitarai (84yo)

24.4yrs

Tenure

JP¥372,000,000

Compensation

Mr. Fujio Mitarai has been the Chairman and Chief Executive Officer of Canon Inc. since March 31, 2006 and September 1995 respectively. Mr. Mitarai served as the President of Canon Singapore Pte. Ltd. sinc ...


CEO Compensation Analysis

Compensation vs Market: Fujio's total compensation ($USD3.36M) is above average for companies of similar size in the JP market ($USD1.75M).

Compensation vs Earnings: Fujio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fujio Mitarai
Chairman & CEO24.4yrsJP¥372.00m0.012% ¥354.4m
Masaya Maeda
President12.9yrsJP¥174.00m0.0014% ¥41.4m
Toshizo Tanaka
CFO, EVP24.9yrsJP¥166.00m0.0022% ¥62.9m
Toshio Homma
Executive VP16.9yrsJP¥139.00m0.0051% ¥149.0m
Warren Dyer
Chief Operating Officer0yrsno datano data
Yoroku Adachi
Executive Vice President0.8yrsJP¥198.00mno data
Kazuto Ogawa
Managing Executive Officer0.8yrsno datano data
Hideki Ozawa
Executive Vice President0.8yrsJP¥123.00mno data
Seymour Liebman
Senior Managing Executive Officer0.8yrsno datano data
Masanori Yamada
Managing Executive Officer0.8yrsno datano data

0.8yrs

Average Tenure

70yo

Average Age

Experienced Management: 7751's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Fujio Mitarai
Chairman & CEO24.4yrsJP¥372.00m0.012% ¥354.4m
Masaya Maeda
President12.9yrsJP¥174.00m0.0014% ¥41.4m
Toshizo Tanaka
CFO, EVP24.9yrsJP¥166.00m0.0022% ¥62.9m
Toshio Homma
Executive VP16.9yrsJP¥139.00m0.0051% ¥149.0m
Haruhiko Kato
Outside Director5.9yrsno datano data
Kunitaro Saida
Outside Director5.9yrsno data0.00052% ¥15.1m
Masaaki Nakamura
Audit & Supervisory Board Member1.9yrsno data0.00020% ¥5.8m
Hiroshi Yoshida
Outside Audit & Supervisory Board Member2.9yrsno data0.00014% ¥4.1m
Koichi Kashimoto
Outside Audit & Supervisory Board Member1.9yrsno data0.000050% ¥1.4m
Hiroaki Sato
Audit & Supervisory Board Member0.9yrsno datano data

5.9yrs

Average Tenure

67yo

Average Age

Experienced Board: 7751's board of directors are considered experienced (5.9 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canon Inc.
  • Ticker: 7751
  • Exchange: TSE
  • Founded: 1933
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: JP¥2.898t
  • Shares outstanding: 1.06b
  • Website: https://global.canon

Number of Employees


Location

  • Canon Inc.
  • 30-2, Shimomaruko 3-chome
  • Ohta-ku
  • Tokyo
  • 146-8501
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAJNYSE (New York Stock Exchange)ADR EACH REP 1 ORD NPVUSUSDMay 1972
CAJ NBMV (Bolsa Mexicana de Valores)ADR EACH REP 1 ORD NPVMXMXNMay 1972
CNNADB (Deutsche Boerse AG)ADR EACH REP 1 ORD NPVDEEURMay 1972
CAJF.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
7751TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
CNN1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
CNN1WBAG (Wiener Boerse AG)YesCommon StockATEURJan 1975

Biography

Canon Inc. 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: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit. The Office Business Unit segment offers office MFDs, printers, copying machines for personal and office use, production print products for print professionals, laser multifunction and laser printers, digital continuous feed presses, digital sheet-fed presses, wide-format printers, and document solutions, as well as software, services, and solutions. The Imaging System Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras and camcorders, digital cinema cameras, interchangeable lenses, compact photo printers, inkjet printers, commercial photo printers, image scanners, multimedia projectors, broadcast equipment, and calculators. The Medical System Business Unit segment offers digital radiography systems, diagnostic X-ray systems, computed tomography, magnetic resonance imaging, diagnostic ultrasound systems, clinical chemistry analyzers, and ophthalmic equipment. The Industry and Others Business Unit segment provides semiconductor lithography equipment, flat panel display lithography equipment, vacuum thin-film deposition equipment, organic light-emitting diode panel manufacturing equipment, die bonders, micromotors, network cameras, handy terminals, and document scanners. The company also provides maintenance services; and supplies replacement drums, parts, toners, and papers. It sells its products under the Canon brand through subsidiaries or independent distributors to dealers and retail outlets, as well as directly to end-users in Japan, the Americas, Europe, rest of Asia, and Oceania. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 15:06
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.