Canon Stock Analysis, Valuation (NYSE:CAJ)
Canon Stock Analysis
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.
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.