CANON INC-SPONS ADR (CAJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAJ - US1380063099 - ADR
21.63 USD
-0.03 (-0.14%)
21.55 USD
-0.08 (-0.37%)
CAJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. CAJ has an average financial health and profitability rating. CAJ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CAJ was profitable.
- CAJ had a positive operating cash flow in the past year.
1.2 Ratios
- CAJ has a Return On Assets of 4.79%. This is in the better half of the industry: CAJ outperforms 69.44% of its industry peers.
- With an excellent Return On Equity value of 7.84%, CAJ belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- CAJ has a Return On Invested Capital of 7.03%. This is in the better half of the industry: CAJ outperforms 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAJ is significantly below the industry average of 16.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.84% | ||
| ROIC | 7.03% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.14%
ROIC(5y)N/A
1.3 Margins
- CAJ has a better Profit Margin (6.05%) than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of CAJ has remained more or less at the same level.
- CAJ has a better Operating Margin (8.77%) than 72.22% of its industry peers.
- CAJ's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 45.34%, CAJ belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
- CAJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.77% | ||
| PM (TTM) | 6.05% | ||
| GM | 45.34% |
OM growth 3Y21.78%
OM growth 5Y-0.43%
PM growth 3Y20.28%
PM growth 5Y0.41%
GM growth 3Y0.39%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
- CAJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CAJ has less shares outstanding
- Compared to 1 year ago, CAJ has a worse debt to assets ratio.
2.2 Solvency
- CAJ has an Altman-Z score of 3.11. This indicates that CAJ is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of CAJ (3.11) is better than 72.22% of its industry peers.
- The Debt to FCF ratio of CAJ is 4.03, which is a neutral value as it means it would take CAJ, 4.03 years of fcf income to pay off all of its debts.
- CAJ has a better Debt to FCF ratio (4.03) than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.00 indicates that CAJ is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.00, CAJ is doing good in the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.98
WACC7.19%
2.3 Liquidity
- A Current Ratio of 1.58 indicates that CAJ should not have too much problems paying its short term obligations.
- The Current ratio of CAJ (1.58) is comparable to the rest of the industry.
- CAJ has a Quick Ratio of 1.58. This is a bad value and indicates that CAJ is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.99, CAJ is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- CAJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.27%, which is quite good.
- The Earnings Per Share has been growing slightly by 1.21% on average over the past years.
- CAJ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
- Measured over the past years, CAJ shows a decrease in Revenue. The Revenue has been decreasing by -0.24% on average per year.
EPS 1Y (TTM)15.27%
EPS 3Y26.5%
EPS 5Y1.21%
EPS Q2Q%45.15%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y3.91%
Revenue growth 5Y-0.24%
Sales Q2Q%21.11%
3.2 Future
- CAJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.68% yearly.
- The Revenue is expected to grow by 1.78% on average over the next years.
EPS Next Y9.15%
EPS Next 2Y4.87%
EPS Next 3Y3.68%
EPS Next 5YN/A
Revenue Next Year3.16%
Revenue Next 2Y2.4%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.43 indicates a correct valuation of CAJ.
- 75.00% of the companies in the same industry are more expensive than CAJ, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, CAJ is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.40 indicates a reasonable valuation of CAJ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CAJ indicates a somewhat cheap valuation: CAJ is cheaper than 72.22% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. CAJ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAJ is valued cheaper than 94.44% of the companies in the same industry.
- 61.11% of the companies in the same industry are more expensive than CAJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.24 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.36
PEG (5Y)10.25
EPS Next 2Y4.87%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.10%, CAJ is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.64, CAJ pays a better dividend. On top of this CAJ pays more dividend than 94.44% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, CAJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
- The dividend of CAJ decreases each year by -9.14%.
- CAJ has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of CAJ decreased in the last 3 years.
Dividend Growth(5Y)-9.14%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- CAJ pays out 48.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.91%
EPS Next 2Y4.87%
EPS Next 3Y3.68%
21.63
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-30 2023-01-30/dmh
Earnings (Next)04-24 2023-04-24/bmo
Inst Owners0.04%
Inst Owner Change-0.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.97B
Revenue(TTM)4.03T
Net Income(TTM)243.96B
Analysts66.36
Price Target24.23 (12.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend120
Dividend Growth(5Y)-9.14%
DP48.91%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.19%
Min EPS beat(2)-26.83%
Max EPS beat(2)12.46%
EPS beat(4)1
Avg EPS beat(4)-8.79%
Min EPS beat(4)-26.83%
Max EPS beat(4)12.46%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-1.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)2.45%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.33%
PT rev (3m)-9.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)-6.46%
EPS NY rev (3m)-9.78%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.72 | ||
| P/FCF | 39.24 | ||
| P/OCF | 11.07 | ||
| P/B | 0.93 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)1.74
EY8.04%
EPS(NY)1.9
Fwd EY8.77%
FCF(TTM)0.55
FCFY2.55%
OCF(TTM)1.95
OCFY9.03%
SpS30
BVpS23.17
TBVpS13.84
PEG (NY)1.36
PEG (5Y)10.25
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.84% | ||
| ROCE | N/A | ||
| ROIC | 7.03% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 12.36% | ||
| OM | 8.77% | ||
| PM (TTM) | 6.05% | ||
| GM | 45.34% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.14%
ROIC(5y)N/A
ROICexc(3y)5.66%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y27.22%
ROICexgc growth 5Y-1.65%
ROICexc growth 3Y26.88%
ROICexc growth 5Y-0.66%
OM growth 3Y21.78%
OM growth 5Y-0.43%
PM growth 3Y20.28%
PM growth 5Y0.41%
GM growth 3Y0.39%
GM growth 5Y-1.48%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 83.24% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 30.36% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.11 |
F-Score7
WACC7.19%
ROIC/WACC0.98
Cap/Depr(3y)78.57%
Cap/Depr(5y)80.53%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)120.26%
Profit Quality(5y)108.77%
High Growth Momentum
Growth
EPS 1Y (TTM)15.27%
EPS 3Y26.5%
EPS 5Y1.21%
EPS Q2Q%45.15%
EPS Next Y9.15%
EPS Next 2Y4.87%
EPS Next 3Y3.68%
EPS Next 5YN/A
Revenue 1Y (TTM)14.75%
Revenue growth 3Y3.91%
Revenue growth 5Y-0.24%
Sales Q2Q%21.11%
Revenue Next Year3.16%
Revenue Next 2Y2.4%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
EBIT growth 1Y25.36%
EBIT growth 3Y26.54%
EBIT growth 5Y-0.67%
EBIT Next Year22170%
EBIT Next 3Y517.9%
EBIT Next 5YN/A
FCF growth 1Y-72.93%
FCF growth 3Y-19.65%
FCF growth 5Y-28.67%
OCF growth 1Y-41.78%
OCF growth 3Y-9.85%
OCF growth 5Y-14.96%
CANON INC-SPONS ADR / CAJ FAQ
What is the ChartMill fundamental rating of CANON INC-SPONS ADR (CAJ) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CAJ.
What is the valuation status of CANON INC-SPONS ADR (CAJ) stock?
ChartMill assigns a valuation rating of 6 / 10 to CANON INC-SPONS ADR (CAJ). This can be considered as Fairly Valued.
What is the profitability of CAJ stock?
CANON INC-SPONS ADR (CAJ) has a profitability rating of 3 / 10.
What is the valuation of CANON INC-SPONS ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANON INC-SPONS ADR (CAJ) is 12.43 and the Price/Book (PB) ratio is 0.93.
How sustainable is the dividend of CANON INC-SPONS ADR (CAJ) stock?
The dividend rating of CANON INC-SPONS ADR (CAJ) is 7 / 10 and the dividend payout ratio is 48.91%.