NGK Insulators (5333) AI Stock Analysis

• Market Cap: ¥712.96B
• Dividend Yield: 2.39%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.09
• Revenue Growth: 7.35%
• EPS Growth: 60.37%
• Country: JP
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 61.07
• Shares Outstanding: 297,957,000
• 10 Day Avg. Volume: 972,880
• 30 Day Avg. Volume: 1,117,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,266.88
• Price Target Upside: -9.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥2,282.00 ▼(-9.12% Downside)

NGK Insulators enjoys robust financial health with strong revenue and profit growth, supported by solid profitability margins and a conservative balance sheet. The technical indicators show bullish momentum, though the high RSI suggests caution for potential pullbacks. The low P/E ratio and attractive dividend yield further enhance its appeal, indicating a potentially undervalued investment opportunity despite overbought signals.

NGK Insulators Business Overview & Revenue Model

Company Description

NGK Insulators, Ltd., together with its subsidiaries, manufactures and sells electric power related equipment in Japan, North America, Europe, and Asia. The company operates through Environment Business, Digital Society Business, and Energy & Industry Business segments. It offers energy storage systems, including NAS batteries; suspension, long rod, station post, hollow, and pin post insulators; HONEYCERAM, a component for exhaust gas purification; diesel particulate filters that eliminates particulates in the exhaust gas emitted from diesel automobiles; and NOx sensors, which measures nitrogen oxide concentration in motor vehicle exhaust gas. The company also provides metal-related products, such as beryllium copper products, copper-nickel-tin alloy products, molds, and related parts; and various electronic components, such as piezoelectric micro actuators, high frequency components, and mold-cast ceramics, as well as EnerCera, a chip-type ceramic rechargeable battery. In addition, it offers ceramics for semiconductor manufacturing equipment, including ceramic heaters, electrostatic chucks, and components; and industrial process products, such as heating systems, kiln furniture and refractories, ceramic membranes and separators, glass-lining products, high temperature dust collectors, ceramic and vacuum pumps, radioactive waste treatment equipment, and gas analyzers, as well as C1 home-use water Purifiers. The company was incorporated in 1919 and is headquartered in Nagoya, Japan.

How the Company Makes Money

NGK Insulators generates revenue through the manufacture and sale of various ceramic and insulator products. Key revenue streams include high-voltage insulators for power transmission and distribution, ceramic components for automotive and industrial applications, and environmental products designed to reduce emissions. The company also benefits from strategic partnerships and collaborations with other industrial and technological firms, which help enhance its product offerings and market reach. Additionally, NGK Insulators invests in research and development to innovate and improve its product lines, maintaining a competitive edge in the global market.

NGK Insulators Financial Statement Overview

Summary

NGK Insulators demonstrates strong financial health with consistent revenue and profit growth, solid profitability margins, and a stable balance sheet. The company maintains a conservative leverage profile with a focus on operational efficiency and cash generation, positioning it well for future growth.

Income Statement

NGK Insulators has shown consistent revenue growth, with a 7% increase from the previous year. The gross profit margin stands at 28.21%, and the net profit margin is strong at 8.87%. The company exhibits healthy EBIT and EBITDA margins of 12.92% and 21.57%, respectively. This indicates robust operational efficiency and profitability.

Balance Sheet

The debt-to-equity ratio is 0.35, reflecting a conservative leverage approach. The return on equity (ROE) is 7.62%, indicating moderate profitability for shareholders. The equity ratio is substantial at 63.04%, suggesting a solid financial foundation with significant equity buffer.

Cash Flow

Free cash flow has shown a stable growth trajectory, with a year-on-year increase. The operating cash flow to net income ratio is 1.76, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is 1.00, indicating efficient conversion of earnings to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	619.51B	578.91B	559.24B	510.44B	452.04B
Gross Profit	174.78B	155.85B	153.78B	162.69B	122.98B
EBITDA	133.62B	117.00B	119.75B	132.80B	95.77B
Net Income	54.93B	40.56B	55.05B	70.85B	38.50B
Balance Sheet
Total Assets	1.14T	1.13T	1.03T	982.83B	908.97B
Cash, Cash Equivalents and Short-Term Investments	263.87B	242.67B	214.71B	185.64B	166.36B
Total Debt	252.24B	259.32B	253.36B	252.35B	264.24B
Total Liabilities	415.48B	424.35B	386.72B	393.24B	391.07B
Stockholders Equity	720.58B	696.28B	636.33B	584.09B	512.88B
Cash Flow
Free Cash Flow	54.86B	54.02B	54.80B	57.40B	32.30B
Operating Cash Flow	96.66B	99.16B	97.95B	94.83B	85.64B
Investing Cash Flow	-55.08B	-68.59B	-52.01B	-46.29B	-51.72B
Financing Cash Flow	-34.22B	-36.12B	-34.57B	-45.26B	12.25B

NGK Insulators Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2511.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5333, the sentiment is Positive. The current price of 2511 is above the 20-day moving average (MA) of 2424.13, above the 50-day MA of 2215.94, and above the 200-day MA of 1930.61, indicating a bullish trend. The MACD of 77.99 indicates Positive momentum. The RSI at 72.63 is Negative, neither overbought nor oversold. The STOCH value of 70.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5333.

NGK Insulators Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6622	81 Outperform	¥188.67B	15.06	8.64%	1.99%	18.08%	-18.15%
6845	73 Outperform	¥760.17B	18.09	17.27%	1.68%	0.54%	32.45%
5333	72 Outperform	¥712.96B	11.94	8.68%	2.39%	7.35%	60.37%
5631	64 Neutral	¥654.34B	34.95	9.30%	0.84%	9.43%	21.15%
6302	57 Neutral	¥434.89B	-125.91	1.21%	3.52%	-4.25%	-110.18%
6481	56 Neutral	¥463.66B	69.56	2.15%	6.08%	0.85%	-46.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%