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 3.7/5
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?
- Canon's average operating margin of 8.22 was exceptional.
- The operating cash flow looks good at 1.5799 times the net income.
- The price to earnings multiple of 13.9 is attractive when compared with the sector average PE ratio of 25.5.
- The lower PS ratio 0.9 for CAJ stock versus Computer and Technology sector average of 3 is a positive for the company.
- Canon is a dividend paying stock with a high yield of 4.16.
- Canon generates a high return on invested capital of 7.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Canon at 8.3.
- The company has a good Free Cash Flow (FCF) margin of 8.2.
Should you sell CAJ stock?
- The company saw an average annual sales decline of -1.5 in sales over the last 5 years.
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.