CANON INC-SPONS ADR (CAJ) Stock Fundamental Analysis
USA - NYSE:CAJ - US1380063099 - ADR
21.63 USD
-0.03 (-0.14%)
21.55 USD
-0.08 (-0.37%)
CAJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While CAJ has a great profitability rating, there are some minor concerns on its financial health. CAJ has a correct valuation and a medium growth rate.
1. Profitability
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 had positive earnings in each of the past 5 years.
Each year in the past 5 years CAJ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CAJ (4.79%) is better than 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's Return On Invested Capital of 7.03% is fine compared to the rest of the industry. CAJ outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAJ is significantly below the industry average of 16.28%.
| 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's Profit Margin of 6.05% is fine compared to the rest of the industry. CAJ outperforms 75.00% of its industry peers.
CAJ's Profit Margin has been stable in the last couple of years.
The Operating Margin of CAJ (8.77%) is better than 72.22% of its industry peers.
CAJ's Operating Margin has been stable in the last couple of years.
CAJ has a Gross Margin of 45.34%. This is amongst the best in the industry. CAJ outperforms 80.56% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAJ is creating some value.
The number of shares outstanding for CAJ has been reduced compared to 1 year ago.
The debt/assets ratio for CAJ is higher compared to a year ago.
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.
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.
The Debt to Equity ratio of CAJ (0.00) is better than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.98
WACC7.19%
2.3 Liquidity
CAJ has a Current Ratio of 1.58. This is a normal value and indicates that CAJ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.58, CAJ is in line with its industry, outperforming 41.67% of the companies in the same 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.
CAJ has a Quick ratio of 0.99. This is in the lower half of the industry: CAJ underperforms 63.89% of its industry peers.
| 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.
CAJ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.21% yearly.
The Revenue has grown by 14.75% in the past year. This is quite good.
CAJ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.24% yearly.
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
The Earnings Per Share is expected to grow by 3.68% on average over the next years.
Based on estimates for the next years, CAJ will show a small growth in Revenue. The Revenue will grow by 1.78% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.43, CAJ is valued correctly.
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.
CAJ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of CAJ.
Based on the Price/Forward Earnings ratio, CAJ is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
CAJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, CAJ is valued a bit cheaper than 61.11% of the companies in the same industry.
| 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.
CAJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)10.25
EPS Next 2Y4.87%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
CAJ has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 1.87, 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 2.36, 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.
CAJ has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.14%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
48.91% of the earnings are spent on dividend by CAJ. 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)
Earnings (Next)
Inst Owners0.04%
Inst Owner Change-17.53%
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 for 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.
Can you provide the PE and PB ratios for CAJ stock?
The Price/Earnings (PE) ratio for CANON INC-SPONS ADR (CAJ) is 12.43 and the Price/Book (PB) ratio is 0.93.
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.