Canon investors need patience

Article Excerpt

CANON INC. ADRs $25 is still worth holding. The company (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs o/s: 1.1 billion; Market cap: $27.5 billion; P.S. ratio: 1.0; Divd. yield: 5.2%; TSINetwork Rating: Above Average; www.canon.com) is a leader in printers, copiers and other office equipment. Its other products include digital cameras and parts for TVs and medical gear. With declining demand for digital cameras and printers, Canon saw sales of $32.7 billion in 2019 from $35.6 billion in 2018. It reported that 8.2% drop to investors, along with a 49.8% decline in earnings per ADR. That fell to $1.06 from $2.11. To protect investor value, Canon will cut costs and launch new medical scanners. That should lift 2020 earnings to $1.50 per ADR. Canon trades at a somewhat high 16.7 times that forecast considering its slowing sales. Still, your $1.31 dividend—yielding a high 5.2%—seems safe. safe…

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