Canon Stock Analysis, Valuation (NYSE:CAJ)

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$37.7 $0.2 (0.53%) CAJ stock closing price Feb 16, 2018 (Closing)
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Canon
Updated on : Feb 16, 2018
previous close
CAJ 37.7 (0%)
NASDAQ 7239.5 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Office Automation and Equipment
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.2%
Operating Profit
Operating Margin:
8.1%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.53B
Net Income:
$483.8M
Dividend Yield
CAJ dividend yield:
3.63%
PROS      CONS
Cash Flow
ROIC
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CAJ PS :
1.1
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.8%
Return on Equity:
8%
Free Cash Flow Margin:
11.4%
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Canon Stock Analysis

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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 3.6/5

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 operating cash flow looks good at 3.2 times the net income.
  • CAJ stock is trading at an earnings multiple of 17.4 which is better than the industry average of 25.7.
  • When compared with the Office Automation and Equipment industry average PS ratio of 2.8, the price-to-sales ratio of 1.1 for CAJ stock is attractive.
  • Canon has an attractive ROIC (Return on Invested Capital) of 6.8%
  • Canon has a healthy FCF (Free Cash Flow) margin of 11.4%.

Should you sell CAJ stock?

  • The company saw an average annual sales decline of -3.2% in sales over the last 5 years.

Comments on this video and Canon stock

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.