NGK SPARK PLUG CO (5334) AI Stock Analysis

• Market Cap: $1.32T
• Dividend Yield: 2.81%
• Average Volume (3M): 675.72K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.28
• Revenue Growth: 6.53%
• EPS Growth: 11.14%
• Country: JP
• Employees: 15,980
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 149.59
• 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: 0.79
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 6.19
• 1Y Price Target: $6,294.80
• Price Target Upside: -5.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥7,141.00 ▲(6.87% Upside)

NGK SPARK PLUG CO's strong financial performance and fair valuation are the primary drivers of its overall score. The stock's bullish momentum is tempered by overbought technical indicators, suggesting caution in the short term. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Revenue Growth

The company's substantial revenue growth indicates robust demand for its products, strengthening its market position and supporting future expansion.

Healthy Balance Sheet

A low debt-to-equity ratio reflects prudent financial management, providing the company with financial flexibility to invest in growth opportunities.

Strong Profitability

High profitability margins indicate efficient operations and strong pricing power, which can sustain long-term financial health and shareholder returns.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow growth can limit the company's ability to invest in new projects and return capital to shareholders, potentially impacting future growth.

Cost Pressures

Rising costs can erode profit margins, affecting the company's ability to maintain its competitive edge and profitability over time.

Monitoring Debt Levels

While current debt levels are low, an upward trend in debt could strain financial resources and limit strategic flexibility if not managed carefully.

NGK SPARK PLUG CO Business Overview & Revenue Model

Company Description

NGK Spark Plug Co., Ltd. is a leading manufacturer of spark plugs and ignition systems, primarily serving the automotive industry. Founded in Japan, the company operates in various sectors, including automotive, industrial, and electronic components. NGK is renowned for its innovation in ceramic technology and produces a wide range of products, including spark plugs, oxygen sensors, and automotive ceramics, catering to both original equipment manufacturers (OEMs) and the aftermarket.

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

NGK SPARK PLUG CO exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust, supported by a low debt-to-equity ratio and solid return on equity. While cash flow generation is generally strong, the recent decline in free cash flow growth requires attention.

Income Statement

NGK SPARK PLUG CO has demonstrated strong revenue growth, particularly in the TTM period with a 68.6% increase. The company maintains solid profitability with a gross profit margin of 39.5% and a net profit margin of 14.2% in TTM. The EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in gross profit from the previous annual report suggests potential cost pressures.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.23 in TTM, reflecting prudent financial management. Return on equity is healthy at 13.3%, indicating effective use of equity capital. The equity ratio of 59% suggests a strong capital structure, though the increase in total debt over time warrants monitoring.

Cash Flow

NGK SPARK PLUG CO's cash flow performance is mixed. The operating cash flow to net income ratio of 0.87 in TTM indicates strong cash generation relative to earnings. However, the negative free cash flow growth rate of -11.4% in TTM highlights challenges in maintaining cash reserves. The free cash flow to net income ratio remains solid at 0.77, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	657.47B	652.99B	614.49B	562.56B	491.73B	427.55B
Gross Profit	257.57B	258.10B	226.19B	197.82B	156.17B	130.22B
EBITDA	168.24B	179.08B	158.19B	134.39B	121.70B	86.68B
Net Income	88.81B	92.63B	82.65B	66.29B	60.20B	38.37B
Balance Sheet
Total Assets	1.15T	990.97B	975.72B	903.10B	823.18B	771.29B
Cash, Cash Equivalents and Short-Term Investments	219.44B	208.19B	180.68B	201.63B	172.59B	139.52B
Total Debt	308.80B	156.68B	178.11B	186.42B	154.74B	187.54B
Total Liabilities	472.62B	316.24B	337.42B	339.36B	305.19B	319.67B
Stockholders Equity	680.80B	674.57B	637.68B	563.67B	514.32B	448.83B
Cash Flow
Free Cash Flow	91.11B	102.83B	82.72B	44.98B	44.07B	33.82B
Operating Cash Flow	118.67B	132.92B	118.18B	69.31B	71.91B	63.40B
Investing Cash Flow	-167.28B	-34.25B	-92.16B	-37.38B	10.23B	-42.52B
Financing Cash Flow	108.37B	-71.00B	-57.45B	-1.77B	-53.83B	28.17B

NGK SPARK PLUG CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6682.00
• 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 Positive. The current price of 6682 is above the 20-day moving average (MA) of 6513.30, above the 50-day MA of 6111.05, and above the 200-day MA of 5028.70, indicating a bullish trend. The MACD of 139.92 indicates Positive momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 57.54 is Neutral, 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
5105	81 Outperform	$642.23B	8.84	15.27%	3.05%	2.81%	2.78%
5334	74 Outperform	$1.32T	13.79	13.69%	2.81%	6.53%	11.14%
5191	73 Outperform	¥269.43B	9.25	―	2.93%	2.19%	27.44%
5161	71 Outperform	¥106.14B	31.31	―	6.01%	-4.26%	17.85%
5101	70 Outperform	$880.78B	13.90	9.11%	1.62%	10.53%	-2.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	$482.57B	-33.33	4.89%	2.98%	-0.26%	129.15%

NGK SPARK PLUG CO Corporate Events

Niterra Acquires DENSO’s Spark Plug and Exhaust Sensor Businesses

Niterra Co., Ltd. has announced its acquisition of DENSO Corporation’s Spark Plug and Exhaust Gas Sensor businesses. This strategic move aims to strengthen Niterra’s position in the internal combustion engine parts market, supporting its growth and contribution to carbon neutrality through optimized production systems and stable global supply.

The most recent analyst rating on (JP:5334) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on NGK SPARK PLUG CO stock, see the JP:5334 Stock Forecast page.

Niterra Co., Ltd. Reports Revenue Growth Amid Profit Decline

Niterra Co., Ltd., formerly known as NGK Spark Plug Co., is a prominent player in the automotive industry, specializing in the production of spark plugs, glow plugs, and automotive sensors, with a focus on innovative component solutions.