NGK Insulators (5333) AI Stock Analysis

• Market Cap: ¥1.27T
• Dividend Yield: 2.01%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 1.09
• Revenue Growth: 8.91%
• EPS Growth: 12.03%
• Country: JP
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 59.56
• Shares Outstanding: 292,243,500
• 10 Day Avg. Volume: 1,024,400
• 30 Day Avg. Volume: 1,030,250
• PEG Ratio: 0.25
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 9.88
• 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: ¥4,008.00
• Price Target Upside: 14.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 205.73
• Revenue Forecast (FY): ¥656.57B

• Rating: 73 Outperform
• Price Target: ¥4,893.00 ▲(40.20% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by strong financial performance (solid margins, conservative leverage, and strong cash conversion). Technicals support the uptrend, but overbought signals (RSI 79 and Stoch 95) temper the outlook. Valuation is the main drag with a P/E of 22.7 and a modest 1.6% dividend yield.

Positive Factors

Strong profit margins

High and consistent gross, EBIT and EBITDA margins indicate durable operational efficiency and pricing power in ceramic manufacturing. These margins provide a structural buffer against input cost swings, support reinvestment and sustain free cash flow over multi-quarter cycles.

Conservative leverage and capital structure

A low debt-to-equity ratio and substantial equity ratio create enduring financial flexibility, enabling NGK to fund capex, withstand demand troughs, and pursue strategic investments without heavy refinancing risk, supporting stability across 2–6 month horizons.

Strong cash generation and FCF conversion

Robust conversion of earnings into operating and free cash flow underpins dividend capacity and internal funding for maintenance capex and R&D. Reliable FCF reduces dependence on external financing and supports long-term operational continuity.

Negative Factors

Cyclical end-market exposure

Significant exposure to utility and automotive capex and production cycles creates structural revenue volatility. Durable demand timing depends on large buyer CapEx plans and auto OEM production, which can materialize unevenly across quarters and constrain steady growth.

Moderate return on equity

A mid-single-digit ROE suggests limited efficiency in converting equity into shareholder returns compared with higher-return industrial peers. Persistently moderate ROE may constrain long-term shareholder value creation absent higher margin expansion or faster growth.

Modest top-line growth

Underlying revenue growth is modest, reflecting mature market segments and dependence on replacement and capex cycles. Without acceleration or diversification into higher-growth areas, revenue may expand slowly, limiting scalability and long-term upside.

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 primarily through the sale of its core products, which include ceramic insulators for power transmission and distribution systems, as well as other industrial components. The company's revenue model is based on direct sales to utility companies, infrastructure developers, and manufacturers in various industries. Key revenue streams include long-term contracts with electric utilities for high-voltage insulators, sales of components for renewable energy systems, and partnerships with rail and automotive manufacturers for specialized industrial applications. Additionally, NGK Insulators benefits from its strong reputation for quality and reliability, which helps secure repeat business and new contracts in a competitive market.

NGK Insulators Financial Statement Overview

Summary

Strong profitability and efficiency (gross margin 28.21%, net margin 8.87%, EBIT margin 12.92%, EBITDA margin 21.57%) with continued revenue growth. Balance sheet is solid with conservative leverage (debt-to-equity 0.35, equity ratio 63.04%) and moderate ROE (7.62%). Cash generation is strong with good earnings-to-cash conversion (operating cash flow to net income 1.76; free cash flow to net income 1.00).

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	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	633.45B	619.51B	578.91B	559.24B	510.44B	452.04B
Gross Profit	180.82B	174.78B	155.85B	153.78B	162.69B	122.98B
EBITDA	101.76B	133.62B	117.00B	115.11B	143.68B	101.50B
Net Income	61.87B	54.93B	40.56B	55.05B	70.85B	38.50B
Balance Sheet
Total Assets	1.14T	1.14T	1.13T	1.03T	982.83B	908.97B
Cash, Cash Equivalents and Short-Term Investments	273.23B	263.87B	242.67B	214.71B	185.64B	166.36B
Total Debt	244.15B	252.24B	259.32B	253.36B	252.35B	264.24B
Total Liabilities	397.72B	415.48B	424.35B	386.72B	393.24B	391.07B
Stockholders Equity	732.16B	720.58B	696.28B	636.33B	584.09B	512.88B
Cash Flow
Free Cash Flow	0.00	54.86B	54.02B	54.80B	57.40B	32.30B
Operating Cash Flow	0.00	96.66B	99.16B	97.95B	94.83B	85.64B
Investing Cash Flow	0.00	-55.08B	-68.59B	-52.01B	-46.29B	-51.72B
Financing Cash Flow	0.00	-34.22B	-36.12B	-34.57B	-45.26B	12.25B

NGK Insulators Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3490 is below the 20-day moving average (MA) of 4183.25, below the 50-day MA of 3808.00, and above the 200-day MA of 2686.71, indicating a bullish trend. The MACD of 207.35 indicates Negative momentum. The RSI at 78.38 is Negative, neither overbought nor oversold. The STOCH value of 87.70 is Negative, 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
6841	78 Outperform	¥1.65T	27.48	11.96%	1.21%	4.63%	12.32%
3433	78 Outperform	¥181.46B	21.32	―	3.39%	14.21%	29.38%
5333	73 Outperform	¥1.27T	24.31	7.13%	2.01%	8.91%	12.03%
5368	73 Outperform	¥11.31B	10.15	―	3.51%	14.57%	14.12%
6508	71 Outperform	¥360.23B	15.98	14.28%	2.40%	8.03%	23.50%
6925	69 Neutral	¥284.41B	51.19	2.20%	2.81%	-3.70%	-36.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%