Canon, Inc. (7751) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ai Holdings Corp.

Elecom Co., Ltd.

Wacom Co., Ltd.

Ricoh Co., Ltd.

Sato Holdings Corp.

Seiko Epson Corp.

Brother Industries, Ltd.

EIZO Corp.

Canon, Inc.

Riso Kagaku Corp.

Konica Minolta, Inc.

Why is Canon, Inc. ?

Low Debt Company with Strong Long Term Fundamental Strength

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 10.21% signifying high profitability per unit of total capital (equity and debt)

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 10,927.84
DEBT-EQUITY RATIO (HY) Highest at 14.35 %
INTEREST(Q) Highest at JPY 1,631 MM

With ROE of 11.43%, it has a very attractive valuation with a 1.78 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 -6.75%, its profits have risen by 22.2% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -6.75% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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.

-6.75%

627.10

27.44%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.46%

EBIT Growth (5y)

22.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.08

Tax Ratio

36.83%

Dividend Payout Ratio

93.64%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

10.21%

ROE (avg)

8.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.78

EV to EBIT

12.88

EV to EBITDA

8.55

EV to Capital Employed

1.72

EV to Sales

1.30

PEG Ratio

0.70

Dividend Yield

0.04%

ROCE (Latest)

13.38%

ROE (Latest)

11.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.44

RAW MATERIAL COST(Y)

Fallen by 0.71% (YoY

CASH AND EQV(HY)

Highest at JPY 1,423,910 MM

EPS(Q)

Highest at JPY 91.85

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 10,927.84

DEBT-EQUITY RATIO (HY)

Highest at 14.35 %

INTEREST(Q)

Highest at JPY 1,631 MM

Here's what is working for Canon, Inc.

Dividend per share

Highest at JPY 5.44 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

EPS

Highest at JPY 91.85

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 1,423,910 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.71% (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.

Interest

At JPY 1,631 MM has Grown at 20.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 10,927.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 1,631 MM

in the last five periods and Increased by 20.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 14.35 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio