Canon Inc. (:192409) Sees Sales Pivot -0.035228 Year over Year

Canon Inc. (:192409) has seen cash flow growth over the past year of -0.1591.  Cash flow and cash flow growth can reveal to an investor how quickly the firm is generating inflows of cash from their business operations.  

Stock market investors often rely on fundamental analysis for stock research. The EPS or earnings per share ratio shows the amount of company earnings that can be attributed to every share that is held. EPS lets investors directly compare one company to another when examining potential investments. Investors are typically searching for stocks that have a growing EPS. The EPS measure tends to be more telling when viewed over a longer period of time. When companies report quarterly earnings, the EPS measure is highly scrutinized by investors and analysts alike. 
Canon Inc. (:192409) of the Technology Hardware & Equipment sector closed the recent session at 3001 with a market value of $29519456.

Taking look at some key returns data we can note the following:

Canon Inc. (:192409) has Return on Invested Capital of -0.016687, with a 5-year average of 1.139802 and an ROIC quality score of 8.763395. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at -0.569138 for Canon Inc. (:192409).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Canon Inc. (:192409)’s Cash Flow to Capex stands at 6.

For technical traders, support and resistance lines play an important role. The support line generally displays the lowest price that investors will let a stock trade. This means that the stock price is unlikely to drop under this level. When support lines are breached, chartists may be watching for shares to move lower until they reach the next support level. The resistance line is the exact opposite of the support line. The resistance level is typically the highest price that investors will allow the stock to trade at. Traders will carefully watch the stock price when a resistance level is broken. The thought is that the price will continue to move towards the next level of resistance. Traders and investors may use support and resistance lines for various purposes. One popular use of these lines is to identify possible entry and exit points for trades.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at -0.1591 for Canon Inc. (:192409).  The one year Growth EBIT ratio stands at -0.08351 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at -0.03477 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at -0.226581.  The one year growth in Net Profit after Tax is 0.46994 and lastly sales growth was -0.035228.

In looking at some Debt ratios, Canon Inc. (:192409) has a debt to equity ratio of 0.141858 and a Free Cash Flow to Debt ratio of 0.1876.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 0.159489.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Canon Inc.’s ND to MV current stands at 3903243458. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Stock market players may have differing opinions on which type of research approach is best. Individual investors who prefer buy and hold strategies may be more likely to be studying the fundamentals. Traders that are constantly buying and selling shares may be more concerned with technical analysis. High frequency traders may be willing to take on more risk entering the market. For these types of traders, entry and exit points become far more important. Traders may be relying solely on charts in order to capture profits based on day to day, hour to hour, or minute by minute price fluctuations. Long term investors may not be as concerned with the daily ups and downs of the market. 

50/200 Simple Moving Average Cross

Canon Inc. (:192409) has a 0.83602 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Investors may be wondering what’s in store for the next few months in terms of the equity market. Many investors may be hesitant to get into the mix with markets still trading at such high levels. Sometimes, the fear of missing out on the next big run will cause investors to make hasty decisions. Taking the time to do the full research can help offset the jitters associated with picking stocks. Finding stocks that still have room to head higher can be tricky, but there are still plenty of them out there. Although nobody can say for certain which way the market will trend into the New Year, investors should be on the lookout for opportunities that may present themselves over the next quarter. All eyes will be focused on company earnings when the next round of earnings reports begins.  

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