TSE:7751

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

7751

-1.8%

JP Tech

0.4%

JP Market


1 Year Return

-39.9%

7751

-21.1%

JP Tech

1.8%

JP Market

Return vs Industry: 7751 underperformed the JP Tech industry which returned -22.1% over the past year.

Return vs Market: 7751 underperformed the JP Market which returned 2.2% over the past year.


Shareholder returns

7751IndustryMarket
7 Day-3.1%-1.8%0.4%
30 Day-6.9%-2.7%2.4%
90 Day-24.1%-9.4%4.0%
1 Year-37.2%-39.9%-18.4%-21.1%4.4%1.8%
3 Year-47.9%-54.6%-27.2%-34.2%6.9%-0.5%
5 Year-36.5%-49.4%-12.1%-25.0%37.4%23.3%

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?

25.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7751 (¥1724.5) is trading above our estimate of fair value (¥1514.02)

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 (25.2x) compared to the JP Tech industry average (19.2x).

PE vs Market: 7751 is poor value based on its PE Ratio (25.2x) compared to the JP market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: 7751 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 7751 is good value based on its PB Ratio (0.7x) compared to the JP Tech industry average (0.9x).


Next Steps

Future Growth

How is Canon forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7751's forecast earnings growth (19.7% per year) is above the savings rate (0.05%).

Earnings vs Market: 7751's earnings (19.7% per year) are forecast to grow faster than the JP market (17.7% per year).

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

Revenue vs Market: 7751's revenue (1.4% per year) is forecast to grow slower than the JP market (5.1% per year).

High Growth Revenue: 7751's revenue (1.4% 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 (4.1%).


Next Steps

Past Performance

How has Canon performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7751 has high quality earnings.

Growing Profit Margin: 7751's current net profit margins (2.2%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: 7751's earnings have declined by 7.2% 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 (-60.6%) over the past year, making it difficult to compare to the Tech industry average (-12%).


Return on Equity

High ROE: 7751's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Canon's financial position?


Financial Position Analysis

Short Term Liabilities: 7751's short term assets (¥1,818.4B) exceed its short term liabilities (¥1,042.0B).

Long Term Liabilities: 7751's short term assets (¥1,818.4B) exceed its long term liabilities (¥900.2B).


Debt to Equity History and Analysis

Debt Level: 7751's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: 7751's debt to equity ratio has increased from 0.06% to 20.5% over the past 5 years.

Debt Coverage: 7751's debt is well covered by operating cash flow (69.1%).

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


Balance Sheet


Next Steps

Dividend

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

4.64%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 7751's dividend (4.64%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 7751's dividend (4.64%) is in the top 25% of dividend payers in the JP market (3.15%)


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (175.6%), 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?

1.4yrs

Average management tenure


CEO

Fujio Mitarai (85 yo)

25yrs

Tenure

JP¥393,000,000

Compensation

Mr. Fujio Mitarai has been the Chairman and Chief Executive Officer of Canon Inc. since March 31, 2006 and September 1995 respectively and also serves as President and Chief Operating Officer since May 1, ...


CEO Compensation Analysis

Compensation vs Market: Fujio's total compensation ($USD3.74M) is above average for companies of similar size in the JP market ($USD1.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fujio Mitarai
Chairman25yrsJP¥393.00m0.013%
¥ 231.2m
Toshizo Tanaka
CFO, EVP25.5yrsJP¥165.00m0.0022%
¥ 40.6m
Toshio Homma
Executive VP17.5yrsJP¥134.00m0.0056%
¥ 101.0m
Warren Dyer
Chief Operating Officerno datano datano data
Kenichi Nagasawa
Group Executive of Corporate Intellectual Property & Legal HQ and Managing Executive Officerno datano datano data
Hisahiro Minokawa
Managing Executive Officer and Group Executive of Human Resources Management & Organization HQ1.42yrsno datano data
Kazuto Ogawa
Managing Executive Officer1.42yrsno datano data
Hideki Ozawa
Executive Vice President1.42yrsJP¥123.00mno data
Seymour E. Liebman
Senior Managing Executive Officer1.42yrsno datano data
Masanori Yamada
Managing Executive Officer1.42yrsno datano data
Yuichi Ishizuka
Managing Executive Officer1.42yrsno datano data
Aitake Wakiya
Managing Executive Officer1.42yrsno datano data

1.4yrs

Average Tenure

70yo

Average Age

Experienced Management: 7751's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Fujio Mitarai
Chairman25yrsJP¥393.00m0.013%
¥ 231.2m
Toshizo Tanaka
CFO, EVP25.5yrsJP¥165.00m0.0022%
¥ 40.6m
Toshio Homma
Executive VP17.5yrsJP¥134.00m0.0056%
¥ 101.0m
Haruhiko Kato
Independent Outside Director6.5yrsno data0.000020%
¥ 360.7k
Ryuichi Ebinuma
Member of Audit & Supervisory Board0.50yrno data0.0010%
¥ 18.6m
Kunitaro Saida
Independent Outside Director6.5yrsno data0.00068%
¥ 12.3m
Hiroshi Yoshida
Outside Audit & Supervisory Board Member3.5yrsno data0.00026%
¥ 4.7m
Koichi Kashimoto
Outside Audit & Supervisory Board Member2.5yrsno data0.00010%
¥ 1.8m
Hiroaki Sato
Audit & Supervisory Board Member1.5yrsno data0.00017%
¥ 3.1m
Yutaka Tanaka
Audit & Supervisory Board Member1.5yrsno data0.000040%
¥ 721.4k

5.0yrs

Average Tenure

69.5yo

Average Age

Experienced Board: 7751's board of directors are considered experienced (5 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¥1.803t
  • Shares outstanding: 1.05b
  • Website: https://global.canon

Number of Employees


Location

  • Canon Inc.
  • 30-2, Shimomaruko 3-chome
  • Ohta-ku
  • Tokyo
  • 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 operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 19:52
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.