Canon (CAJPY) AI Stock Analysis

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Canon

(Other OTC:CAJPY)

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Rating:69Neutral

Price Target:$32.00▲(9.06% Upside)

Action:downgraded

Date:10/29/26

Strong financial performance from revenue growth and margins is the primary driver, reinforced by attractive valuation; neutral technical signals provide limited additional support.

Positive Factors

Revenue GrowthStrong TTM revenue growth indicates renewed demand across Canon’s diversified hardware, imaging, medical, and industrial businesses. If sustained, this broader sales base can support operating scale, reinforce customer relationships, and provide a durable foundation for earnings growth over the next several quarters.

Negative Factors

Weaker Cash ConversionThe recent decline in operating and free cash flow indicates that reported earnings are converting into cash less effectively. Although free cash flow remains positive, weaker conversion can reduce flexibility for investment, shareholder returns, debt reduction, and absorbing unexpected operating needs.

Canon Key Performance Indicators (KPIs)

Net Sales By SegmentShows revenue generated from each business segment, highlighting which areas are driving growth and which may need strategic adjustments.

Chart Insights

Canon's Printing segment shows a robust recovery, with consistent growth since 2023, likely driven by increased demand for home and office equipment. The Imaging segment is also gaining momentum, reflecting a resurgence in consumer interest and possibly new product launches. Meanwhile, the Medical segment is steadily improving, indicating strategic focus and potential market expansion. However, the Industrial segment remains volatile, suggesting challenges in this area. The absence of earnings call data leaves potential strategic shifts unclear, but the overall trend points to a positive trajectory in key segments.

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The Fly

Canon (CAJPY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $27.69B
Dividend Yield: 3.38%
Average Volume (3M): 35.43K
Price to Earnings (P/E): 11.5
Beta (1Y): 0.37
Revenue Growth: -1.45%
EPS Growth: 115.81%
Country: US
Employees: 165,547
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Canon Business Overview & Revenue Model

Company Description

Canon Inc. is a global technological leader, headquartered in Tokyo, Japan, which was established in 1933. The company specializes in the development, production, and worldwide distribution of a comprehensive array of advanced equipment. Its diverse...

How the Company Makes Money

Canon primarily makes money by selling hardware systems and by generating recurring revenue from consumables and services tied to its installed base. In its office/business printing operations, revenue comes from sales of multifunction office devices...

Canon Financial Statement Overview

Summary

Strong revenue growth to 4.81T and stable margins near 47-48% support solid operations, though rising debt to 1.45T increases leverage risk.

Income Statement

81Very Positive

Balance Sheet

58Neutral

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.81T	4.85T	4.51T	4.18T	4.03T	3.51T
Gross Profit	2.31T	2.27T	2.14T	1.97T	1.83T	1.63T
EBITDA	686.52B	763.92B	540.37B	631.71B	579.98B	524.60B
Net Income	363.37B	348.15B	160.03B	264.51B	243.96B	214.72B
Balance Sheet
Total Assets	6.40T	6.14T	5.77T	5.42T	5.10T	4.75T
Cash, Cash Equivalents and Short-Term Investments	714.23B	618.85B	506.34B	405.14B	373.01B	404.77B
Total Debt	1.45T	946.16B	663.50B	517.32B	417.41B	320.97B
Total Liabilities	2.85T	2.36T	2.12T	1.81T	1.75T	1.65T
Stockholders Equity	3.35T	3.49T	3.38T	3.35T	3.11T	2.87T
Cash Flow
Free Cash Flow	164.13B	224.10B	369.83B	220.88B	74.08B	273.68B
Operating Cash Flow	435.49B	498.97B	606.83B	451.19B	262.60B	451.03B
Investing Cash Flow	-216.39B	-248.96B	-297.32B	-275.37B	-180.82B	-207.26B
Financing Cash Flow	-239.90B	-187.91B	-226.00B	-156.73B	-146.84B	-267.37B

Canon Technical Analysis

Technical Analysis SentimentNegative

Last Price29.34

Price Trends

50DMA29.52Negative

100DMA28.65Positive

200DMA28.31Positive

Market Momentum

MACD0.01Positive

RSI46.12Neutral

STOCH26.66Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAJPY, the sentiment is Negative. The current price of 29.34 is below the 20-day moving average (MA) of 30.17, below the 50-day MA of 29.52, and above the 200-day MA of 28.31, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAJPY.

Canon Risk Analysis

Canon disclosed 20 risk factors in its most recent earnings report. Canon reported the most risks in the "Tech & Innovation" category.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Canon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

CAJPY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	78Outperform	$34.57B	25.50	113.67%	1.14%	12.15%	24.60%
STX	74Outperform	$115.15B	28.03	245.11%	0.54%	44.37%	142.99%
CAJPY	69Neutral	$28.60B	11.52	10.45%	3.38%	-1.45%	115.81%
DELL	65Neutral	$212.60B	21.37	-574.57%	0.65%	48.86%	152.40%
HPE	63Neutral	$63.63B	25.00	10.87%	1.13%	26.63%	130.65%
HPQ	59Neutral	$25.63B	10.93	-727.30%	4.14%	8.67%	-4.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

CAJPY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CAJPY	Canon Inc.	29.34	0.02	0.05%
HPQ	HP Inc	28.96	5.62	24.08%
NTAP	NetApp Inc	183.12	75.34	69.90%
STX	Seagate Technology	551.72	295.02	114.93%
HPE	Hewlett Packard Enterprise	50.25	27.82	124.06%
DELL	Dell Technologies	373.68	241.32	182.31%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Canon AI Stock Analysis