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Is this Large Market Cap Stock target price reasonable for Canon Inc. (NYSE:CAJ)?

The company in question is, Canon Inc. (NYSE:CAJ) currently with a stock price of 28.49 (-0.49% today). The market cap for Canon Inc. is 38749.84, and is in the sector Consumer Goods, and Business Equipment industry. The target price for Canon Inc. is 28.57. Currently Canon Inc. is trading with a P/E of 16.06, and a forward P/E of 16.03. Average volume for Canon Inc. is 283.58 and so far today it is 13024.

Performance in the last year for Canon Inc. has been -5.04%. For EPS growth, Canon Inc. has seen a growth of -12.00%, and is looking to grow in the next year to 13.04%. More long term stats show that EPS growth has been 0.20% over the last five years and could be 3.00% for the next five years. Canon Inc. has seen sales growth quarter over quarter at -11.70%, with EPS growth quarter over quarter at -21.60%. The 20-day simple moving average is 0.00%, with the 200-day simple moving average coming to -1.47%.

Since the IPO date for Canon Inc. on the 3/17/1980, Canon Inc. has seen performance year to date to be -4.98%. With Canon Inc. trading at 28.49, the dividend yield is 4.92%, and the EPS is 1.78.

So could Canon Inc., be undervalued? Well as said before P/E is 16.06. The PEG is 5.35, P/S is 1.1 and the P/B is at 1.19. The P/cash is 6.71, with P/free cash flow at 43.5.

Canon Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1. This is with long term debt/equity at 0, and total debt/equity at 0.23.

In terms of margins, Canon Inc. has a gross margin of 50.40%, an operating margin of 8.10% and a profit margin of 5.50%.Payout ratio for Canon Inc. is 82.10%. Return on assets come to 4.40% with return on investment coming to 8.10%.

Insider ownership for Canon Inc., is at *TBA and institutional ownership comes to 1.60%. Outstanding shares are at 1353.47. While shares float is 1272.61. The float short is currently 0.15%, and short ratio is 6.63.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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