CANON INC-SPONS ADR (CAJ) Stock Fundamental Analysis
NYSE:CAJ - New York Stock Exchange, Inc. - US1380063099 - ADR - Currency: USD
Overall CAJ gets a fundamental rating of 6 out of 10. We evaluated CAJ against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. CAJ scores excellent on profitability, but there are some minor concerns on its financial health. CAJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CAJ had positive earnings in the past year.
CAJ had a positive operating cash flow in the past year.
CAJ had positive earnings in each of the past 5 years.
CAJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAJ's Return On Assets of 4.79% is fine compared to the rest 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'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.
CAJ had an Average Return On Invested Capital over the past 3 years of 9.14%. This is significantly below the industry average of 16.14%.
| 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.
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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAJ is still 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.
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 has a Altman-Z score of 3.11. This is in the better half 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 Debt to FCF ratio of 4.03. This is amongst the best in the industry. CAJ outperforms 83.33% of its industry peers.
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 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.
CAJ's Current ratio of 1.58 is in line compared to the rest of the industry. CAJ outperforms 41.67% of its industry peers.
A Quick Ratio of 0.99 indicates that CAJ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, CAJ is doing worse than 63.89% of the companies in the same industry.
| 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.
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.
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
The Earnings Per Share is expected to grow by 3.68% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 12.43, the valuation of CAJ can be described as correct.
Based on the Price/Earnings ratio, CAJ is valued a bit 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 27.30.
The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of CAJ.
72.22% of the companies in the same industry are more expensive than CAJ, based on the Price/Forward Earnings ratio.
CAJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, 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
CAJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CAJ is cheaper than 94.44% of the companies in the same industry.
CAJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAJ is 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
With a Yearly Dividend Yield of 4.10%, CAJ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.96, CAJ pays a better dividend. On top of this CAJ pays more dividend than 94.44% of the companies listed in the same industry.
CAJ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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
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 Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.97B
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
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
ROICexcg growth 3Y27.22%
ROICexcg 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%