CANON INC-SPONS ADR (CAJ) Fundamental Analysis & Valuation

NYSE:CAJ • US1380063099

Current stock price

21.63 USD
-0.03 (-0.14%)
At close:
21.55 USD
-0.08 (-0.37%)
After Hours:

This CAJ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CAJ Profitability Analysis

1.1 Basic Checks

  • CAJ had positive earnings in the past year.
  • In the past year CAJ had a positive cash flow from operations.
CAJ Yearly Net Income VS EBIT VS OCF VS FCFCAJ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 100B 200B 300B 400B 500B

1.2 Ratios

  • CAJ has a better Return On Assets (4.79%) than 69.44% of its industry peers.
  • CAJ has a better Return On Equity (7.84%) than 83.33% of its industry peers.
  • The Return On Invested Capital of CAJ (7.03%) is better than 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 15.34%.
Industry RankSector 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
CAJ Yearly ROA, ROE, ROICCAJ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6 8

1.3 Margins

  • Looking at the Profit Margin, with a value of 6.05%, CAJ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CAJ has remained more or less at the same level.
  • With a decent Operating Margin value of 8.77%, CAJ is doing good in the industry, outperforming 72.22% of the companies in the same industry.
  • 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.
  • In the last couple of years the Gross Margin of CAJ has remained more or less at the same level.
Industry RankSector 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%
CAJ Yearly Profit, Operating, Gross MarginsCAJ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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5

2. CAJ Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAJ is creating some value.
  • Compared to 1 year ago, CAJ has less shares outstanding
  • The debt/assets ratio for CAJ is higher compared to a year ago.
CAJ Yearly Shares OutstandingCAJ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B
CAJ Yearly Total Debt VS Total AssetsCAJ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1T 2T 3T 4T 5T

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.
  • CAJ's Altman-Z score of 3.11 is fine compared to the rest of the industry. CAJ outperforms 72.22% of its industry peers.
  • CAJ has a debt to FCF ratio of 4.03. This is a neutral value as CAJ would need 4.03 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 4.03, CAJ belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • CAJ has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
  • CAJ has a Debt to Equity ratio of 0.00. This is in the better half of the industry: CAJ outperforms 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 4.03
Altman-Z 3.11
ROIC/WACC0.98
WACC7.19%
CAJ Yearly LT Debt VS Equity VS FCFCAJ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 1T 2T 3T

2.3 Liquidity

  • A Current Ratio of 1.58 indicates that CAJ should not have too much problems paying its short term obligations.
  • CAJ has a Current ratio of 1.58. This is comparable to the rest of the industry: CAJ outperforms 41.67% of its industry peers.
  • 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.
  • CAJ has a worse Quick ratio (0.99) than 63.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.58
Quick Ratio 0.99
CAJ Yearly Current Assets VS Current LiabilitesCAJ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500B 1T 1.5T 2T

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4

3. CAJ Growth Analysis

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.
  • Measured over the past 5 years, CAJ shows a small growth in Earnings Per Share. The EPS has been growing by 1.21% on average per year.
  • The Revenue has grown by 14.75% in the past year. This is quite good.
  • The Revenue has been decreasing by -0.24% on average over the past years.
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

  • Based on estimates for the next years, CAJ will show a small growth in Earnings Per Share. The EPS will grow by 3.68% on average per year.
  • CAJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.78% yearly.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CAJ Yearly Revenue VS EstimatesCAJ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T 4T
CAJ Yearly EPS VS EstimatesCAJ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100 150 200 250

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6

4. CAJ Valuation Analysis

4.1 Price/Earnings Ratio

  • CAJ is valuated correctly with a Price/Earnings ratio of 12.43.
  • CAJ's Price/Earnings ratio is a bit cheaper when compared to the industry. CAJ is cheaper than 75.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.64. CAJ is valued rather cheaply when compared to this.
  • CAJ is valuated reasonably with a Price/Forward Earnings ratio of 11.40.
  • CAJ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAJ is cheaper than 72.22% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CAJ to the average of the S&P500 Index (21.36), we can say CAJ is valued slightly cheaper.
Industry RankSector Rank
PE 12.43
Fwd PE 11.4
CAJ Price Earnings VS Forward Price EarningsCAJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • Based on the Price/Free Cash Flow ratio, CAJ is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 39.24
EV/EBITDA 4.79
CAJ Per share dataCAJ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. CAJ Dividend Analysis

5.1 Amount

  • CAJ has a Yearly Dividend Yield of 4.10%, which is a nice return.
  • CAJ's Dividend Yield is rather good when compared to the industry average which is at 0.70. CAJ pays more dividend than 94.44% of the companies in the same industry.
  • CAJ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector 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
CAJ Yearly Dividends per shareCAJ Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 20 40 60

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%
CAJ Yearly Income VS Free CF VS DividendCAJ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 100B 200B 300B 400B
CAJ Dividend Payout.CAJ Dividend Payout, showing the Payout Ratio.CAJ Dividend Payout.PayoutRetained Earnings

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CAJ Fundamentals: All Metrics, Ratios and Statistics

CANON INC-SPONS ADR

NYSE:CAJ (3/6/2023, 8:04:00 PM)

After market: 21.55 -0.08 (-0.37%)

21.63

-0.03 (-0.14%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)01-30
Earnings (Next)04-24
Inst Owners0.04%
Inst Owner Change0.04%
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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


How profitable is CANON INC-SPONS ADR (CAJ) stock?

CANON INC-SPONS ADR (CAJ) has a profitability rating of 3 / 10.


What is the financial health of CANON INC-SPONS ADR (CAJ) stock?

The financial health rating of CANON INC-SPONS ADR (CAJ) is 5 / 10.


Can you provide the dividend sustainability for CAJ stock?

The dividend rating of CANON INC-SPONS ADR (CAJ) is 7 / 10 and the dividend payout ratio is 48.91%.