Why is Canon Electronics, Inc. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 3.44% and Operating profit at 7.08% over the last 5 years
3
Flat results in Jun 25
- RAW MATERIAL COST(Y) Grown by 8.42% (YoY)
- PRE-TAX PROFIT(Q) Lowest at JPY 1,967 MM
- NET PROFIT(Q) Lowest at JPY 1,420.47 MM
4
With ROE of 6.04%, it has a very attractive valuation with a 0.92 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 41.74%, its profits have risen by 14.1% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 0
5
Consistent Returns over the last 3 years
- Along with generating 41.74% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Canon Electronics, Inc. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Canon Electronics, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Canon Electronics, Inc.
43.03%
1.68
35.01%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
3.44%
EBIT Growth (5y)
7.08%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
0.85
Tax Ratio
24.96%
Dividend Payout Ratio
37.39%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.46%
ROE (avg)
5.07%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.92
EV to EBIT
7.65
EV to EBITDA
5.97
EV to Capital Employed
0.89
EV to Sales
0.79
PEG Ratio
1.08
Dividend Yield
0.04%
ROCE (Latest)
11.66%
ROE (Latest)
6.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Movement
1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 2.69%
-4What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 8.42% (YoY
PRE-TAX PROFIT(Q)
Lowest at JPY 1,967 MM
NET PROFIT(Q)
Lowest at JPY 1,420.47 MM
EPS(Q)
Lowest at JPY 38.38
Here's what is working for Canon Electronics, Inc.
Debtors Turnover Ratio
Highest at 2.69%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Canon Electronics, Inc.
Pre-Tax Profit
Lowest at JPY 1,967 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 1,420.47 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 38.38
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 8.42% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






