Canon Stock Analysis, Valuation (NYSE:CAJ)
Watch the robo advisor video of Canon stock analysis on Amigobulls. Our CAJ analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Canon Inc (ADR) Stock Rating 3.5/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CAJ stock analysis. We compare Canon valuation with its sector peers to gauge relative attractiveness of CAJ stock. Based on a company's historical fundamentals we arrive at Canon stock rating which is indicative of the company's financial performance.
Should you buy CAJ stock?
- The Canon stock currently trades at a price to earnings ratio of 15.2, compared to the sector average of 26.1. We rate this as a positive.
- When compared with the Computer and Technology sector average PS ratio of 2.9, the price-to-sales ratio of 1 for CAJ stock is attractive.
- The company has a healthy dividend yield of 6.
- Canon's return on invested capital of 6.9 is good.
- The LTM ROE of 8.1 for Canon is attractive.
Should you sell CAJ stock?
- Revenue declined at a CAGR of -2.4 over the last 5 years.
- The company has an operating cash flow which is 0.7355 times the net income. This is not a healthy sign.
- The company has a negative free cash flow margin of -0.5.
Investors can make use of the Amigobulls Canon stock analysis to ascertain how CAJ stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.
Canon revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.