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Canon Inc.
(7751)
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Rating:71Outperform
Price Target:
¥5,469.00
▲(17.89% Upside)
Action:Upgraded
Date:07/28/26
The score is driven primarily by healthy core profitability and reasonable balance-sheet strength, tempered by rising leverage and weaker, more volatile free-cash-flow conversion. Technicals add support with the stock trading above major moving averages, and valuation is favorable with a modest P/E and a ~3.37% dividend yield.
Positive Factors
Strong gross and operating margins
Canon’s consistently high gross margins and healthy operating profitability indicate meaningful value capture across its hardware, consumables, services, and specialized equipment businesses. This provides a durable earnings base and supports continued investment even when individual product cycles fluctuate.
Negative Factors
Rising leverage
The clear upward trend in debt relative to equity reduces Canon’s financial flexibility compared with earlier years. If demand weakens across cyclical hardware or industrial businesses, higher leverage could constrain investment choices and increase the importance of maintaining stable operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong gross and operating margins
Canon’s consistently high gross margins and healthy operating profitability indicate meaningful value capture across its hardware, consumables, services, and specialized equipment businesses. This provides a durable earnings base and supports continued investment even when individual product cycles fluctuate.
Read all positive factors
Canon Inc. (7751) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.73T
Dividend Yield3.26%
Average Volume (3M)2.51M
Price to Earnings (P/E)12.4
Beta (1Y)0.71
Revenue Growth3.26%
EPS Growth121.86%
CountryJP
Employees165,547
SectorGeneral
Sector StrengthN/A
IndustryComputer Hardware
Share Statistics
EPS (TTM)395.83
Shares Outstanding1,333,763,400
10 Day Avg. Volume2,687,630
30 Day Avg. Volume2,507,386
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.20
Price to Sales (P/S)0.91
P/FCF Ratio19.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)380.69
Revenue Forecast (FY)¥4.79T
Canon Inc. Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1933, Canon Inc. is a global enterprise specializing in the production and sale of a broad spectrum of imaging, optical, and industrial solutions. Its primary product lines encompass office multifunction devices (MF...
How the Company Makes Money
Canon primarily makes money by selling hardware products and earning recurring revenue from the consumables and services that support those products. A major revenue driver is its office business: Canon sells office multifunction printers/copiers ...
Canon Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.70T | 4.62T | 4.51T | 4.18T | 4.03T | 3.51T |
| Gross Profit | 2.25T | 2.16T | 2.14T | 1.97T | 1.83T | 1.63T |
| EBITDA | 740.51B | 728.60B | 540.37B | 631.71B | 579.98B | 524.60B |
| Net Income | 347.33B | 332.05B | 160.03B | 264.51B | 243.96B | 214.72B |
Balance Sheet | ||||||
| Total Assets | 6.38T | 6.14T | 5.77T | 5.42T | 5.10T | 4.75T |
| Cash, Cash Equivalents and Short-Term Investments | 744.17B | 618.43B | 506.34B | 405.14B | 373.01B | 404.77B |
| Total Debt | 1.27T | 946.16B | 663.50B | 517.32B | 417.41B | 320.97B |
| Total Liabilities | 2.69T | 2.36T | 2.12T | 1.81T | 1.75T | 1.65T |
| Stockholders Equity | 3.48T | 3.49T | 3.38T | 3.35T | 3.11T | 2.87T |
Cash Flow | ||||||
| Free Cash Flow | 256.36B | 213.74B | 369.83B | 220.88B | 74.08B | 273.68B |
| Operating Cash Flow | 522.43B | 475.90B | 606.83B | 451.19B | 262.60B | 451.03B |
| Investing Cash Flow | -216.33B | -237.45B | -297.32B | -275.37B | -180.82B | -207.26B |
| Financing Cash Flow | -330.83B | -179.22B | -226.00B | -156.73B | -146.84B | -267.37B |
Canon Inc. Technical Analysis
Positive
4639.00
Price Trends
4620.20
Positive
4481.87
Positive
4443.03
Positive
Market Momentum
90.29
Negative
75.29
Negative
87.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7751, the sentiment is Positive. The current price of 4639 is below the 20-day moving average (MA) of 4725.55, above the 50-day MA of 4620.20, and above the 200-day MA of 4443.03, indicating a bullish trend. The MACD of 90.29 indicates Negative momentum. The RSI at 75.29 is Negative, neither overbought nor oversold. The STOCH value of 87.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7751.
Canon Inc. Risk Analysis
Canon Inc. disclosed 20 risk factors in its most recent earnings report. Canon Inc. reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Canon Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥129.10B | 15.47 | ― | 3.57% | 5.48% | 127.51% | |
79 Outperform | ¥115.92B | 11.75 | 27.82% | 3.10% | -2.58% | 145.63% | |
77 Outperform | ¥65.41B | 14.05 | ― | 4.64% | 4.83% | 52.94% | |
71 Outperform | ¥4.73T | 12.39 | ― | 3.26% | 3.26% | 121.86% | |
60 Neutral | ¥1.10T | 44.97 | 2.90% | 2.23% | 8.34% | -41.57% | |
58 Neutral | ¥165.05B | 33.72 | 5.11% | 1.33% | 6.91% | -78.12% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:7751
Canon Inc.
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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.