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Canon Solutions’ New Expansion Strategy through Partnerships

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Price movement of Canon

Canon (CAJ) has a market cap of $38.9 billion. CAJ fell by 0.99% to close at $29.13 per share on February 23, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 3.4%, 3.2%, and -3.3%, respectively, as of that day.

At times, the stock has broken the support of all moving day averages. Currently, CAJ is trading 4.1% above its 20-day moving average, 0.88% above its 50-day moving average, and 6.2% below its 200-day moving average.

The Vanguard FTSE Pacific ETF (VPL) invests 0.67% of its holdings in Canon. VPL tracks the FTSE Developed Asia-Pacific Index, a market-cap-weighted index of securities in the developed markets of the Pacific region. The YTD price movement of VPL was -7.8% as of February 22, 2016.

The market caps of Canon’s closest competitors are as follows:

  • HP (HPQ)—$18.5 billion
  • Kyocera ADR (KYO)—$16.7 billion
  • Xerox (XRX)—$9.6 billion
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Canon new plans

Canon Solutions America, a wholly-owned subsidiary of Canon USA, expanded its strategy of making mid-volume production color accessible to a mbroader segment of the large-format printing market with a new approach to promoting its award-winning Oce ColorWave 500 (R) device.

Canon Solutions America has also partnered with Colex Industries, the US distributor for Fotoba International SRL. Under the agreement, Canon Solutions America will offer the Fotoba brand of large-format X/Y Cutters.

Canon’s performance in 4Q15 and 2015

Canon (CAJ) reported 4Q15 net sales of $159.5 billion, a fall of 1.6% when compared to net sales of $162.2 billion in 4Q14. Sales from its office and imaging system business unit fell by 5.5% and 8.9%, respectively, and sales of industry business unit rose by 42.4% in 4Q15 compared to 4Q14. The company’s net income rose to $10.5 billion in 4Q15, compared to $10.4 million in 4Q14.

2015 results

In fiscal 2015, CAJ reported net sales of ~$581.5 billion, a rise of 2.0% YoY (year-over-year). Its net income and EPS (earnings per share) fell to ~$33.7 billion and $30.85, respectively, in 2015, compared to ~$38.99 billion and $35.04, respectively, in 2014.

Meanwhile, its cash and cash equivalents and inventories fell by 25.0% and 5.0%, respectively, in 2015. Its debt-to-equity ratio fell to 0.39x in 2015 compared to 0.42x in fiscal 2014. The price-to-earnings and price-to-book value ratios of Canon were 16.3x and 1.3x, respectively, as of February 23, 2016.

In the next and final part of this series, we’ll take a look at Cooper Tire & Rubber.

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