NGK SPARK PLUG CO (5334) AI Stock Analysis

• Market Cap: $1.57T
• Dividend Yield: 2.65%
• Average Volume (3M): 675.72K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.16
• Revenue Growth: 6.53%
• EPS Growth: 11.14%
• Country: JP
• Employees: 15,980
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 150.42
• Shares Outstanding: 199,247,730
• 10 Day Avg. Volume: 617,410
• 30 Day Avg. Volume: 675,723
• PEG Ratio: 0.70
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 8.73
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 8.54
• 1Y Price Target: $7,100.50
• Price Target Upside: -10.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 502.65
• Revenue Forecast (FY): $709.25B

• Rating: 67 Neutral
• Price Target: ¥8,532.00 ▲(7.96% Upside)
• Action: Downgraded Date: 02/01/26
• Date: Action: Downgraded 02/01/26

The score is driven mainly by strong profitability and generally sound balance-sheet metrics, tempered by weaker recent cash-flow conversion and slow top-line growth. Technicals are mixed-to-soft with the stock below key short-term moving averages, while valuation is supportive with a moderate P/E and a ~2.7% dividend yield.

Positive Factors

Profitability & margins

High and persistent TTM margins signal durable pricing power and manufacturing efficiency across the core spark-plug and sensor businesses. Strong margins provide internal funds for R&D and capex, support dividends, and create a buffer versus cyclical OEM demand shocks, sustaining long-term competitiveness.

Diversified OEM + aftermarket revenue

A balanced mix of OEM contracts and a global aftermarket with recurring replacement demand lowers revenue volatility. OEM relationships anchor large volumes and technical lock‑ins, while the installed ICE vehicle parc underpins steady aftermarket revenues, supporting resilient cashflows over multiple years.

Healthy returns & manageable leverage

A solid TTM ROE around 14% together with moderate debt/equity shows efficient capital use and financial flexibility. This position allows the company to fund necessary capex and product development, sustain shareholder returns, and absorb typical industry cyclicality without immediate financing strain.

Negative Factors

Slow revenue growth

Very modest TTM top-line growth suggests the core ICE parts business is maturing and faces limited organic expansion. Structural trends toward electrification and slower vehicle production growth could compress addressable market size, forcing reliance on share gains, aftermarket penetration, or margin improvements to drive earnings.

Weaker cash conversion

Declining free cash flow and a sharp drop in operating-cash coverage indicate working-capital strain or higher cash outlays. Weaker cash conversion reduces internally available funds for capex, dividends, or M&A, increases reliance on external financing, and raises vulnerability to cyclical swings in receivables or inventory.

Rising leverage trend

A material rise in debt-to-equity over the latest period erodes the company's balance-sheet cushion. If vehicle production or aftermarket demand weakens, higher leverage could magnify earnings volatility, raise interest costs, and constrain strategic investments or dividend flexibility over the medium term.

NGK SPARK PLUG CO Business Overview & Revenue Model

Company Description

NGK Spark Plug Co., Ltd., together with its subsidiaries, manufactures and sells spark plugs and related products for internal-combustion engines; and technical ceramics and applicable products in Japan. The company offers spark plugs, including plugs for aftermarket and original equipment, igniter plugs, and resister cables and covers; glow plugs comprising ceramic and metal type glow plugs, and glow controllers; and oxygen, NOx, temperature, and knock sensors. It also provides semiconductor packages and substrates, such as IC packages for electronics and smart devices, as well as manufacturing parts for semiconductors; and medical products. In addition, the company offers fine ceramics, including wear-resistant parts, ultrasonic transducers and sensors, products for semiconductor manufacturing equipment, electric equipment products, and other ceramic products. Further, it provides cutting tools comprising ceramic, cermet, micro grain carbide, coated carbide, and cubic boron nitride grades, as well as SS and rotational tools. The company sells its spark and glow plugs under NGK brand; and sensors, semiconductor packages/substrates, cutting tools, and fine ceramics under NTK brand. NGK Spark Plug Co., Ltd. was founded in 1936 and is headquartered in Nagoya, Japan.

How the Company Makes Money

NGK Spark Plug Co. generates revenue primarily through the sale of its core products, which include spark plugs, ignition coils, and related automotive components. The company has established strong relationships with major automotive manufacturers, ensuring a steady demand for its products in the OEM sector. Additionally, NGK benefits from a robust aftermarket segment, providing replacement parts to consumers and repair shops. The company's revenue model is supported by continuous investment in research and development, leading to innovative products that meet evolving market needs. Strategic partnerships with automotive manufacturers and a global distribution network further enhance its market presence, contributing significantly to its earnings.

NGK SPARK PLUG CO Financial Statement Overview

Summary

Strong profitability (TTM gross margin ~39%, operating margin ~21.6%, net margin ~14.7%) and a generally healthy balance sheet (TTM ROE ~14%, debt-to-equity ~0.41). Offsetting factors are slower recent revenue growth (~2% TTM), rising leverage versus the latest annual snapshot, and weaker cash conversion with declining TTM free cash flow (~-12.8% growth).

Income Statement

Profitability is a clear strength: TTM (Trailing-Twelve-Months) gross margin is ~39% and net margin is ~14.7%, with operating profitability also solid (operating margin ~21.6%). Earnings have scaled with revenue over the multi-year period (revenue rising from ~428B to ~653B in the latest annual), showing a generally constructive trajectory. The main weakness is growth momentum: TTM revenue growth is modest (~2%), and the business appears to be shifting from a high-growth phase to a more mature, slower-growth profile.

Balance Sheet

The balance sheet looks generally healthy with moderate leverage and good returns on shareholder capital (TTM return on equity ~14%). Debt levels are manageable relative to equity in TTM (debt-to-equity ~0.41), but leverage has increased versus the latest annual snapshot (debt-to-equity ~0.23), which is a negative trend to monitor. Overall asset and equity bases have grown over time, supporting financial flexibility, but the recent step-up in debt reduces the cushion if industry conditions soften.

Cash Flow

Cash generation remains positive (TTM operating cash flow ~110B; TTM free cash flow ~77B), and free cash flow covers a meaningful portion of earnings (TTM free cash flow is ~70% of net income). However, cash conversion has weakened versus the most recent annual period: operating cash flow is much lower relative to net income in TTM (coverage ~0.38 vs ~0.87 annually), and TTM free cash flow declined (~-12.8% growth). This suggests more working-capital drag and/or higher cash outlays recently, making cash flow quality the key area of concern.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	693.38B	652.99B	614.49B	562.56B	491.73B	427.55B
Gross Profit	273.71B	258.10B	226.19B	197.82B	156.17B	130.22B
EBITDA	191.08B	179.08B	158.19B	134.39B	121.70B	86.68B
Net Income	101.73B	92.63B	82.65B	66.29B	60.20B	38.37B
Balance Sheet
Total Assets	1.23T	990.97B	975.72B	903.10B	823.18B	771.29B
Cash, Cash Equivalents and Short-Term Investments	231.16B	208.19B	180.68B	201.63B	172.59B	139.52B
Total Debt	302.71B	156.68B	178.11B	186.42B	154.74B	187.54B
Total Liabilities	482.84B	316.24B	337.42B	339.36B	305.19B	319.67B
Stockholders Equity	743.40B	674.57B	637.68B	563.67B	514.32B	448.83B
Cash Flow
Free Cash Flow	77.25B	102.83B	82.72B	44.98B	44.07B	33.82B
Operating Cash Flow	109.98B	132.92B	118.18B	69.31B	71.91B	63.40B
Investing Cash Flow	-161.99B	-34.25B	-92.16B	-37.38B	10.23B	-42.52B
Financing Cash Flow	96.40B	-71.00B	-57.45B	-1.77B	-53.83B	28.17B

NGK SPARK PLUG CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7903.00
• 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:5334, the sentiment is Positive. The current price of 7903 is above the 20-day moving average (MA) of 7164.65, above the 50-day MA of 7021.12, and above the 200-day MA of 5867.78, indicating a bullish trend. The MACD of 285.82 indicates Negative momentum. The RSI at 70.21 is Negative, neither overbought nor oversold. The STOCH value of 83.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5334.

NGK SPARK PLUG CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6923	78 Outperform	¥431.48B	13.36	6.37%	2.88%	4.86%	10.95%
7259	77 Outperform	$2.09T	12.58	8.34%	2.03%	4.33%	524.86%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
5802	72 Outperform	¥8.09T	31.45	8.97%	1.38%	4.96%	8.64%
5334	67 Neutral	$1.57T	15.41	13.69%	2.65%	6.53%	11.14%
6902	67 Neutral	$6.19T	16.31	6.98%	2.98%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

NGK SPARK PLUG CO Corporate Events

Niterra Reshapes Top Management, Naming Keiji Suzuki President

Niterra Co., Ltd. has announced a leadership reshuffle, appointing current board member and executive officer Keiji Suzuki as Representative Director and President, effective April 1, 2026, while incumbent president Takeshi Kawai will become Representative Director and Chairman. Long-time chairman Shinichi Odo will step down from the board after the June 2026 shareholders’ meeting to serve as Executive Advisor, with the company framing the changes as a move to strengthen its management foundation and respond more swiftly to significant changes in its operating environment, supporting sustainable growth and higher corporate value.

Suzuki, an engineer by training who joined the company in 1993, has advanced through key roles in the sensor division and executive ranks, signaling continuity in technical and operational expertise at the top. The transition underscores Niterra’s intention to revitalize its governance structure without disrupting strategic direction, which may reassure investors and business partners looking for both stability and responsiveness in the company’s leadership amid ongoing industry transformation.

The most recent analyst rating on (JP:5334) stock is a Hold with a Yen8455.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.

Niterra Continues Share Buyback, Reaches ¥13 Billion in Repurchases

Niterra Co., Ltd. has disclosed the latest status of its ongoing share buyback program conducted under its Articles of Incorporation pursuant to Japan’s Companies Act. Between January 1 and January 31, 2026, the company repurchased 792,900 common shares for a total of approximately ¥5.5 billion, bringing cumulative repurchases under the board-approved program (effective November 1, 2025 to October 31, 2026) to 1,918,400 shares at about ¥13.0 billion. This remains within the authorized ceiling of up to 7.2 million shares and ¥30 billion, indicating continued execution of capital allocation measures that can support shareholder returns and potentially enhance earnings per share while still leaving capacity for further repurchases during the remainder of the program period.

The most recent analyst rating on (JP:5334) stock is a Buy with a Yen7575.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.

Niterra Posts Higher Revenue and Profit as Automotive Components Drive Asset Growth

Niterra Co., Ltd. reported solid quarterly results for the three months ended December 31, 2025, with revenue rising to ¥174.9 billion from ¥161.1 billion a year earlier and operating profit improving to ¥38.9 billion. Automotive components remained the core driver, with spark and glow plugs and automotive sensors together contributing the bulk of sales, while the component solutions segment continued to expand. The company’s balance sheet also strengthened, as total assets increased to ¥1.23 trillion, supported by higher cash and cash equivalents, larger inventories and a substantial rise in goodwill and intangible assets, suggesting recent investments or acquisitions. These trends indicate sustained demand in Niterra’s core automotive markets and a strategic push into higher-value technologies, which may enhance its competitive position and earnings capacity going forward.

The most recent analyst rating on (JP:5334) stock is a Hold with a Yen7400.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.

Niterra Advances Share Buyback, Repurchases Over 1.1 Million Shares by Year-End 2025

Niterra Co., Ltd. reported that it repurchased 453,300 of its common shares for a total of 3.07 billion yen between December 1 and December 31, 2025, under an ongoing board-approved buyback authorization. As of December 31, 2025, the company had cumulatively repurchased 1,125,500 shares for about 7.50 billion yen against a maximum program size of up to 7.2 million shares and 30 billion yen through October 31, 2026, signaling continued execution of its capital return policy and potential support for shareholder value through reduced share count.

The most recent analyst rating on (JP:5334) stock is a Buy with a Yen7760.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.