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
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and slightly overvalued.
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 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 7751's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
7751
0.2%
JP Tech
0.5%
JP Market
1 Year Return
11.1%
7751
28.2%
JP Tech
39.2%
JP Market
Return vs Industry: 7751 underperformed the JP Tech industry which returned 28.2% over the past year.
Return vs Market: 7751 underperformed the JP Market which returned 39.2% over the past year.
Shareholder returns
| 7751 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 0.2% | 0.5% |
| 30 Day | 9.2% | 4.2% | 2.7% |
| 90 Day | 29.1% | 17.8% | 5.6% |
| 1 Year | 15.4%11.1% | 31.7%28.2% | 42.2%39.2% |
| 3 Year | -23.5%-33.4% | 4.7%-5.6% | 22.2%13.8% |
| 5 Year | -2.2%-21.9% | 24.6%5.7% | 59.1%41.6% |
Long-Term 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?
13.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 7751 (¥2576) is trading below our estimate of fair value (¥2980.21)
Significantly Below Fair Value: 7751 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 7751 is poor value based on its PE Ratio (32.5x) compared to the JP Tech industry average (19.8x).
PE vs Market: 7751 is poor value based on its PE Ratio (32.5x) compared to the JP market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: 7751 is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: 7751 is good value based on its PB Ratio (1x) compared to the JP Tech industry average (1.2x).
Future Growth
How is Canon forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7751's forecast earnings growth (8.4% per year) is above the savings rate (0%).
Earnings vs Market: 7751's earnings (8.4% per year) are forecast to grow slower than the JP market (16.5% per year).
High Growth Earnings: 7751's earnings are forecast to grow, but not significantly.
Revenue vs Market: 7751's revenue (1.1% per year) is forecast to grow slower than the JP market (5.7% per year).
High Growth Revenue: 7751's revenue (1.1% 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 (4.7%).
Past Performance
How has Canon performed over the past 5 years?
-12.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7751 has high quality earnings.
Growing Profit Margin: 7751's current net profit margins (2.6%) are lower than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: 7751's earnings have declined by 12.6% 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 (-33.3%) over the past year, making it difficult to compare to the Tech industry average (13.4%).
Return on Equity
High ROE: 7751's Return on Equity (3.4%) is considered low.
Financial Health
How is Canon's financial position?
Financial Position Analysis
Short Term Liabilities: 7751's short term assets (¥1,789.1B) exceed its short term liabilities (¥1,326.2B).
Long Term Liabilities: 7751's short term assets (¥1,789.1B) exceed its long term liabilities (¥515.4B).
Debt to Equity History and Analysis
Debt Level: 7751's debt to equity ratio (14.3%) is considered satisfactory.
Reducing Debt: 7751's debt to equity ratio has increased from 0.5% to 14.3% over the past 5 years.
Debt Coverage: 7751's debt is well covered by operating cash flow (84.1%).
Interest Coverage: 7751 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Canon current dividend yield, its reliability and sustainability?
3.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 7751's dividend (3.11%) is higher than the bottom 25% of dividend payers in the JP market (1.2%).
High Dividend: 7751's dividend (3.11%) is in the top 25% of dividend payers in the JP market (2.78%)
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 (100.8%), 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?
2.0yrs
Average management tenure
CEO
Fujio Mitarai (85 yo)
25.58yrs
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 served as its President and Chief Operating Officer since May 1, ...
CEO Compensation Analysis
Compensation vs Market: Fujio's total compensation ($USD3.58M) is above average for companies of similar size in the JP market ($USD1.82M).
Compensation vs Earnings: Fujio's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 7751's management team is considered experienced (2 years average tenure).
Board Members
Experienced Board: 7751's board of directors are considered experienced (3.6 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¥2.694t
- Shares outstanding: 1.05b
- Website: https://global.canon
Number of Employees
Location
- Canon Inc.
- 30-2, Shimomaruko 3-chome
- Ohta-ku
- Tokyo
- 146-8501
- Japan
Listings
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 08:08 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.