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.
Rewards
Risk Analysis
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
| 7751 | Industry | Market | |
|---|---|---|---|
| 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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 24.4yrs | JP¥372.00m | 0.012% ¥354.4m | |
| President | 12.9yrs | JP¥174.00m | 0.0014% ¥41.4m | |
| CFO, EVP | 24.9yrs | JP¥166.00m | 0.0022% ¥62.9m | |
| Executive VP | 16.9yrs | JP¥139.00m | 0.0051% ¥149.0m | |
| Chief Operating Officer | 0yrs | no data | no data | |
| Executive Vice President | 0.8yrs | JP¥198.00m | no data | |
| Managing Executive Officer | 0.8yrs | no data | no data | |
| Executive Vice President | 0.8yrs | JP¥123.00m | no data | |
| Senior Managing Executive Officer | 0.8yrs | no data | no data | |
| Managing Executive Officer | 0.8yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 24.4yrs | JP¥372.00m | 0.012% ¥354.4m | |
| President | 12.9yrs | JP¥174.00m | 0.0014% ¥41.4m | |
| CFO, EVP | 24.9yrs | JP¥166.00m | 0.0022% ¥62.9m | |
| Executive VP | 16.9yrs | JP¥139.00m | 0.0051% ¥149.0m | |
| Outside Director | 5.9yrs | no data | no data | |
| Outside Director | 5.9yrs | no data | 0.00052% ¥15.1m | |
| Audit & Supervisory Board Member | 1.9yrs | no data | 0.00020% ¥5.8m | |
| Outside Audit & Supervisory Board Member | 2.9yrs | no data | 0.00014% ¥4.1m | |
| Outside Audit & Supervisory Board Member | 1.9yrs | no data | 0.000050% ¥1.4m | |
| Audit & Supervisory Board Member | 0.9yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAJ | NYSE (New York Stock Exchange) | ADR EACH REP 1 ORD NPV | US | USD | May 1972 | |
| CAJ N | BMV (Bolsa Mexicana de Valores) | ADR EACH REP 1 ORD NPV | MX | MXN | May 1972 | |
| CNNA | DB (Deutsche Boerse AG) | ADR EACH REP 1 ORD NPV | DE | EUR | May 1972 | |
| CAJF.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1975 |
| 7751 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1975 |
| CNN1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1975 |
| CNN1 | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 15:06 |
| End of Day Share Price | 2020/02/25 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.