CAJ

Canon Inc - ADR

TMT, Consumer


Presented:01/31/2022
Price:$23.72
Cap:$24.81B
Current Price:$33.73
Cap:$32.55B

Presented

Date01/31/2022
Price$23.72
Market Cap$24.81B
Ent Value$26.77B
P/E Ratio12.71x
Book Value$23.86
Div Yield3.73%
Shares O/S1,045.77M
Ave Daily Vol303,832
Short IntN/A

Current

Price$33.73
Market Cap$32.55B
Canon, Inc. engages in the development, manufacture, and sale of office multifunction devices, copying machines, printers, cameras, and lithography equipment. It operates through the following segments: Office Business Unit (BU), Imaging Systems, Medical Systems and Others. The Office BU segment offers MFDs, printers, copying machines for personal and office use, and production print products for print professionals. The Imaging Systems segment manufactures and markets digital cameras and digital video camcorders, as well as lenses and various related accessories. The Medical Systems segment covers the diagnostic imaging equipment, from CT and MRI systems to ophthalmic and digital radiography equipment. The Others segment offers semiconductor and flat panel display lithography equipment, digital radiography systems, ophthalmic equipment, vacuum thin-film deposition equipment, organic light-emitting diode panel manufacturing equipment, micro motors, computers, handy terminals, and document scanners. The company was founded on August 10, 1937 and is headquartered in Tokyo, Japan.

Publicly traded companies mentioned herein: Canon Inc (CAJ), HP Inc (HPQ), Sony Group Corp (SONY)

Highlights

The presenter is short shares of Canon Inc (CAJ), the ~32B market cap Japanese-based company mostly known for printers and cameras. While CAJ has four segments, its two smaller segments’ operating profits roughly equate to corporate expenses, so effectively 74% of operating profit comes from printing with the remaining 26% from cameras. Management is suggesting the company can continue to grow, but the presenter attributes strong recent performance to COVID benefits and doesn’t believe continued growth is likely. Both segments have structural issues, and following a strong rebound and some short-term improvement in sentiment, he sees this as an attractive opportunity to short a core underperformer.

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Idea Discussion

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