Canon (CAJ) rose by 1.7% to close at $28.89 per share on during the fifth week of August 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 1.7%, 2.2%, and -4.1%, respectively, as of September 2.
CAJ is now trading 0.78% above its 20-day moving average, 1.6% above its 50-day moving average, and 0.21% below its 200-day moving average.
Related ETF and peers
The Vanguard FTSE Pacific ETF (VPL) invests 0.67% of its holdings in Canon. The ETF 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 6.7% on September 2.
The market caps of Canon’s competitors are as follows:
Latest news on Canon
In a press release on September 1, 2016, Canon “announced today the XC15 4K Video Camcorder, a 4K UHD digital video camcorder for professional use that achieves high-image-quality with a lightweight, compact body.”
In another release, Canon announced “the next step in the evolution of the Cinema EOS family of professional cinematography products with the new EOS C700, EOS C700 PL, and EOS C700 GS PL cinema cameras.”
Canon’s performance in 2Q16
Canon reported 2Q16 net sales of 860.2 billion Japanese yen (about $8.4 billion), which represents a fall of 11.7% from its net sales of 974.4 billion yen (about $9.5 billion) in 2Q15. Sales from its Office and Imaging System units fell by 15.0% and 13.5%, respectively. Sales from its Industry and Other segments rose by 5.8% between 2Q15 and 2Q16. The company’s gross profit margin and operating income fell by 2.8% and 34.5%, respectively.
Its net income and EPS (earnings per share) fell to 53.4 billion yen (about $523 million) and ~48.9 yen (about $0.48), respectively, in 2Q16, as compared to 68.2 billion yen (about $668 million) and 62.44 yen (about $0.61), respectively, in 2Q15.
Canon’s cash and cash equivalents and inventories fell by 10.2% and 4.5%, respectively, between 4Q15 and 2Q16. Its current ratio fell to 1.3x and debt-to-equity ratio rose to 0.59x in 2Q16, as compared with 2.5x and 0.39x, respectively, in 4Q15.
The company has made following projections for fiscal 2016:
- net sales of 3.5 trillion yen (about $34 billion), a fall of 7.4% from fiscal 2015
- operating profit of 265 billion yen (about 2.6 billion), which represents a fall of 25.4% from fiscal 2015
- net income of 180 billion yen (or $1.8 billion), which represents a fall of 18.3% from fiscal 2015
This drop in performance and outlook are mainly due to the global economic slowdown and the negative impact of the foreign exchange rate.
In the next part of this series, we’ll discuss Procter & Gamble (PG).