TICKER 7751.T
ISIN JP3242800005
Market cap. JPY
4,231,457,484,688
Shs outstanding 878,624,893
Canon Inc., together with its subsidiaries, manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates through four segments: Printing Business Unit, Imaging Business Unit, Medical Business Unit, and Industrial and Others Business Unit. The Printing Business Unit segment offers office MFDs, document solutions, laser multifunction printers, laser printers, inkjet printers, image scanners, calculators, digital continuous feed presses, digital sheet-fed presses, and large format printers. The Imaging Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras, interchangeable lenses, compact photo printers, network cameras, video management and video content analytics software, digital camcorders, digital cinema cameras, broadcast equipment, and multimedia projectors. The Medical System Business Unit segment offers computed tomography systems, diagnostic ultrasound systems, diagnostic X-ray systems, magnetic resonance imaging systems, clinical chemistry analyzers, digital radiography systems, and ophthalmic equipment. The Industry and Others Business Unit segment provides semiconductor lithography equipment, flat panel display lithography equipment, vacuum thin-film deposition equipment, organic light-emitting diode display manufacturing equipment, die bonders, handy terminals, and document scanners. The company also provides maintenance services; and supplies replacement drums, parts, toners, and papers. It sells its products under the Canon brand through subsidiaries or independent distributors to dealers and retail outlets, as well as directly to end-users globally. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.

Strategy:

Return at exit: Live
Value-Priced Growth With Strong Momentum
• Canon’s stock has been identified as a strong buy opportunity based on our ML engine’s analysis of its compelling market performance, attractive valuation, and solid growth prospects. • The stock shows strong price momentum with 6-month returns of 9.1% and is currently trading at ~90% of its 52-week high, suggesting continued upward potential. • From a valuation perspective, Canon offers exceptional value with a P/E ratio of 12.8 and an impressively low PEG ratio of 0.1, combined with a generous 3.4% dividend yield. • The company’s fundamentals support this bullish outlook with revenue growth accelerating to 3.8% quarterly, healthy profit margins (46.8% gross margin), and new product innovations like the LG-P800 printer. • Morgan Stanley’s “overweight” rating with a ¥5,800 price target confirms significant upside potential (~27%), with the current price well below both analyst fair value (¥5,082) and InvestingPro fair value (¥5,428).