ScoreWhy is Canon, Inc. ?
1
Poor Management Efficiency with a low ROE of 8.31%
- The company has been able to generate a Return on Equity (avg) of 8.31% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 23.75% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 8.31% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 7.67% and Operating profit at 23.75% over the last 5 years
4
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at JPY 522,432 MM
- DIVIDEND PAYOUT RATIO(Y) Lowest at 56.26%
- DEBT-EQUITY RATIO (HY) Highest at 15.1 %
5
With ROE of 9.75%, it has a very attractive valuation with a 1.67 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 7.04%, its profits have fallen by -9%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Canon, Inc. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Canon, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Canon, Inc.
5.16%
705.93
24.14%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.67%
EBIT Growth (5y)
23.75%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
1.07
Tax Ratio
26.94%
Dividend Payout Ratio
43.57%
Pledged Shares
0
Institutional Holding
0.03%
ROCE (avg)
11.27%
ROE (avg)
8.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.67
EV to EBIT
14.50
EV to EBITDA
9.27
EV to Capital Employed
1.59
EV to Sales
1.34
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
10.95%
ROE (Latest)
9.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
ROCE(HY)
Highest at 10.38%
RAW MATERIAL COST(Y)
Fallen by -11.76% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.59 times
OPERATING PROFIT MARGIN(Q)
Highest at 18.38 %
PRE-TAX PROFIT(Q)
Highest at JPY 177,330 MM
NET PROFIT(Q)
Highest at JPY 122,881 MM
EPS(Q)
Highest at JPY 142.21
-16What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY 522,432 MM
DIVIDEND PAYOUT RATIO(Y)
Lowest at 56.26%
DEBT-EQUITY RATIO
(HY)
Highest at 15.1 %
INTEREST(Q)
Highest at JPY 3,046 MM
Here's what is working for Canon, Inc.
Operating Profit Margin
Highest at 18.38 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 177,330 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 122,881 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 142.21
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 5.59 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -11.76% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Canon, Inc.
Operating Cash Flow
Lowest at JPY 522,432 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Interest
At JPY 3,046 MM has Grown at 18.98%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 3,046 MM
in the last five periods and Increased by 18.98% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 15.1 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio
Lowest at 56.26%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income
Highest at JPY 0.12 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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