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%)
Overall CAJ gets a fundamental rating of 5 out of 10. We evaluated CAJ against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and the financial health of CAJ get a neutral evaluation. Nothing too spectacular is happening here. CAJ has a decent growth rate and is not valued too expensively.
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.
- CAJ has a Return On Equity of 7.84%. This is amongst the best in the industry. CAJ outperforms 83.33% of its industry peers.
- CAJ has a better Return On Invested Capital (7.03%) than 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 16.06%.
| 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
- The Profit Margin of CAJ (6.05%) is better 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.
- 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.
- With an excellent Gross Margin value of 45.34%, CAJ belongs to the best 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.
- CAJ has less shares outstanding than it did 1 year ago.
- CAJ has a worse debt/assets ratio than last year.
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.
- Looking at the Altman-Z score, with a value of 3.11, CAJ is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- 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 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.
- 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.
- CAJ's Quick ratio of 0.99 is on the low side compared to the rest of the industry. CAJ is outperformed by 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.27% over the past year.
- 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.
- 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
- 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
- CAJ is valuated correctly with a Price/Earnings ratio of 12.43.
- Based on the Price/Earnings ratio, CAJ is valued a bit cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. CAJ is valued rather cheaply when compared to this.
- CAJ is valuated reasonably with a Price/Forward Earnings ratio of 11.40.
- 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 25.83. CAJ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
- 94.44% of the companies in the same industry are more expensive than CAJ, based on the Enterprise Value to EBITDA ratio.
- 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
- 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 0.65. CAJ pays more dividend than 94.44% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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%
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%.