NGK SPARK PLUG CO (5334) AI Stock Analysis

• Market Cap: ¥1.40T
• Dividend Yield: 2.65%
• Average Volume (3M): 675.72K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.13
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥7,135.34
• Price Target Upside: 0.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 505.31
• Revenue Forecast (FY): ¥706.79B

• Rating: 67 Neutral
• Price Target: ¥8,301.00 ▲(17.43% 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

High Profitability

Sustainably high margins indicate structural cost advantages in ceramic and ignition tech and pricing power with OEMs. Strong operating and net margins support reinvestment in R&D, steady earnings generation, and resilience through auto production cycles, enhancing long-term cash returns.

Diversified OEM + Aftermarket Revenue

A dual revenue model—long-term OEM contracts plus recurring aftermarket replacements—creates durable cash flow. OEM contracts lend volume predictability while aftermarket demand from the installed ICE vehicle parc provides steady aftermarket revenues as vehicles age, reducing single-cycle exposure.

Healthy Return on Equity & Asset Base

Mid-teens ROE and a growing asset/equity base imply efficient capital allocation and retained earnings funding. This supports capacity, distribution and R&D investment without immediate capital raises, preserving strategic flexibility over the medium term.

Negative Factors

Weakened Cash Conversion

Declining free cash flow and weaker operating cash conversion indicate more working-capital drag or higher cash outlays. That erodes the company’s internal funding capacity for capex, dividends or acquisitions and reduces the buffer against auto-cycle downturns over the medium term.

Slowing Revenue Growth

A deceleration to low single-digit top-line growth suggests limited near-term expansion headroom in core ICE components. Structural industry trends toward electrification and a mature product cycle constrain organic growth unless offset by new product adjacencies or market share gains.

Rising Leverage Trend

An increase in leverage reduces financial flexibility and raises interest-cost sensitivity. If cyclical auto volumes soften, higher debt levels limit the company’s ability to absorb shocks, pursue opportunistic investments or accelerate strategic initiatives without adding financing risk.

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

The company makes money primarily by manufacturing and selling ignition and sensor products to automotive OEM customers and through the global replacement (aftermarket) channel. Key revenue streams include: (1) OEM supply—long-term, high-volume supply of spark plugs, glow plugs, and various sensors (including emissions-related sensors such as oxygen sensors) installed in new vehicles; revenue is driven by vehicle production volumes, platform adoption, pricing/contract terms, and the company’s ability to meet automaker quality and delivery requirements. (2) Aftermarket sales—sales of replacement spark plugs, sensors, and related parts through distributors, retailers, and service/repair channels; this stream is supported by the recurring need to replace wear items (notably spark plugs) and by the installed base of internal combustion vehicles in operation. (3) Industrial and other applications—sales of ceramic and related technology products used in non-automotive markets; specific subcategories and their contribution are null. Significant factors affecting earnings include exposure to global light-vehicle production cycles, the size and age of the ICE vehicle parc driving replacement demand, competitive positioning in ignition and sensor technologies, and global distribution relationships with OEMs and aftermarket partners; named partnerships and their specific financial impact are null.

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	249.13B	217.04B	190.61B	150.02B	124.71B
EBITDA	177.87B	169.85B	147.13B	133.61B	101.02B	81.59B
Net Income	101.73B	92.63B	82.64B	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	167.99B	190.84B	198.22B	165.27B	197.19B
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	85.84B	48.68B	47.52B	36.42B
Operating Cash Flow	109.98B	132.92B	118.18B	69.31B	71.91B	63.40B
Investing Cash Flow	-161.99B	-34.25B	-91.36B	-37.38B	11.75B	-42.52B
Financing Cash Flow	96.40B	-71.00B	-58.24B	-1.77B	-55.34B	28.17B

NGK SPARK PLUG CO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7069.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5334, the sentiment is Neutral. The current price of 7069 is below the 20-day moving average (MA) of 7667.10, below the 50-day MA of 7234.20, and above the 200-day MA of 6090.56, indicating a neutral trend. The MACD of 75.94 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 40.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥276.86B	8.56	6.37%	2.88%	4.86%	10.95%
7282	75 Outperform	¥473.04B	7.76	8.58%	2.62%	1.44%	-0.92%
5802	72 Outperform	¥7.19T	15.56	8.97%	1.38%	4.96%	8.64%
5334	67 Neutral	¥1.40T	11.45	13.69%	2.65%	6.53%	11.14%
6902	67 Neutral	¥5.13T	10.20	6.98%	2.98%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7259	54 Neutral	¥1.65T	14.23	8.34%	2.03%	4.33%	524.86%

NGK SPARK PLUG CO Corporate Events

Niterra Lifts FY2026 Earnings Outlook and Hikes Dividend Forecast

Niterra Co., Ltd. has raised its full-year consolidated forecasts for the fiscal year ending March 31, 2026, projecting revenue of ¥724 billion and profit attributable to owners of the parent of ¥116 billion, driven by a weaker yen and reduced impact from additional U.S. tariff measures. The company also expects financial income to improve due to lower-than-anticipated foreign-exchange losses and valuation gains on investment securities, even after factoring in higher raw material costs and amortization related to the Niterra Materials acquisition.

Reflecting the stronger earnings outlook and its policy of combining stable and performance-linked dividends, Niterra plans to increase its full-year dividend to ¥205 per share, up ¥19 from its previous forecast. The year-end dividend is now expected to be ¥112 per share, underscoring management’s focus on shareholder returns and capitalizing on the improved business environment and financial performance.

The most recent analyst rating on (JP:5334) stock is a Buy with a Yen8164.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.

Niterra Details Progress of Ongoing ¥30 Billion Share Buyback Program

Niterra Co., Ltd. reported the status of its ongoing share buyback program, detailing that it repurchased 174,300 common shares for a total of about 1.22 billion yen between February 1 and February 28, 2026. This activity forms part of a broader board-approved authorization, under which the company has so far bought back 2,092,700 shares for roughly 14.22 billion yen, signaling continued capital return to shareholders and potentially supporting its share price and capital efficiency.

Under the authorization granted on October 31, 2025, Niterra is permitted to repurchase up to 7.2 million common shares, or about 3.62% of its outstanding shares excluding treasury stock, for a maximum of 30 billion yen through October 31, 2026. The latest update indicates the company is progressing steadily but still has significant remaining capacity under the program, which may influence investor expectations regarding future buybacks and the company’s capital allocation strategy.

The most recent analyst rating on (JP:5334) stock is a Hold with a Yen8575.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.

Niterra 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.