NGK SPARK PLUG CO (5334) AI Stock Analysis

• Market Cap: ¥1.35T
• Dividend Yield: 2.69%
• Average Volume (3M): 675.72K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.26
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥6,299.74
• Price Target Upside: -7.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥7,760.00 ▲(13.93% Upside)

NGK SPARK PLUG CO's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's stable financial foundation and bullish technical momentum position it well in the Auto - Parts industry. The valuation is reasonable, with a fair P/E ratio and attractive dividend yield, supporting the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for NGK's products, supporting long-term business sustainability.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, enhancing the company's ability to invest in growth and innovation.

Balance Sheet Health

A strong equity base provides financial stability and flexibility, enabling NGK to withstand economic fluctuations and invest in strategic opportunities.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit NGK's ability to fund new projects or return capital to shareholders, potentially impacting long-term growth.

Cash Generation Efficiency

Moderate cash generation efficiency suggests potential challenges in converting earnings into cash, which could affect liquidity and investment capacity.

Margin Decline

A decline in margins could indicate rising costs or pricing pressures, potentially impacting profitability and competitive positioning over time.

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

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	679.58B	652.99B	614.49B	562.56B	491.73B	427.55B
Gross Profit	264.10B	258.10B	226.19B	197.82B	156.17B	130.22B
EBITDA	178.24B	179.08B	158.19B	134.39B	121.70B	86.68B
Net Income	95.98B	92.63B	82.65B	66.29B	60.20B	38.37B
Balance Sheet
Total Assets	1.21T	990.97B	975.72B	903.10B	823.18B	771.29B
Cash, Cash Equivalents and Short-Term Investments	263.10B	208.19B	180.68B	201.63B	172.59B	139.52B
Total Debt	302.73B	156.68B	178.11B	186.42B	154.74B	187.54B
Total Liabilities	484.66B	316.24B	337.42B	339.36B	305.19B	319.67B
Stockholders Equity	721.85B	674.57B	637.68B	563.67B	514.32B	448.83B
Cash Flow
Free Cash Flow	88.63B	102.83B	82.72B	44.98B	44.07B	33.82B
Operating Cash Flow	118.01B	132.92B	118.18B	69.31B	71.91B	63.40B
Investing Cash Flow	-166.23B	-34.25B	-92.16B	-37.38B	10.23B	-42.52B
Financing Cash Flow	106.84B	-71.00B	-57.45B	-1.77B	-53.83B	28.17B

NGK SPARK PLUG CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6811.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 6811 is above the 20-day moving average (MA) of 6651.45, above the 50-day MA of 6395.18, and above the 200-day MA of 5182.84, indicating a bullish trend. The MACD of 104.44 indicates Positive momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 82.56 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
5105	81 Outperform	¥667.33B	9.19	15.27%	2.92%	2.81%	2.78%
5334	79 Outperform	¥1.35T	14.09	13.69%	2.69%	6.53%	11.14%
5191	79 Outperform	¥267.77B	9.20	―	2.95%	2.19%	27.44%
5101	76 Outperform	$1.03T	12.84	9.11%	1.53%	10.53%	-2.52%
5161	71 Outperform	¥110.72B	18.89	―	5.92%	-4.26%	17.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	¥641.72B	20.17	4.89%	2.56%	-0.26%	129.15%

NGK SPARK PLUG CO Corporate Events

Niterra Co., Ltd. Enhances Performance-Linked Stock Remuneration System

Niterra Co., Ltd. has announced an additional contribution and acquisition of shares for its performance-linked stock remuneration system aimed at directors and corporate officers. This system, which includes a Board Incentive Plan Trust and an Employee Stock Ownership Plan Trust, is designed to align the interests of directors with shareholders and enhance corporate value. The company has extended the trust period and plans to acquire additional shares, demonstrating a commitment to long-term performance and value enhancement.

Niterra Co., Ltd. Announces Share Repurchase Plan to Enhance Shareholder Returns

Niterra Co., Ltd. announced a board resolution to repurchase up to 7.2 million of its own shares, representing 3.62% of the total issued shares, with a maximum expenditure of 30 billion yen. This move aims to enhance shareholder returns and implement more proactive capital strategies, reflecting the company’s commitment to shareholder value and strategic capital allocation.

Niterra Co., Ltd. Increases Dividend Forecast for Fiscal Year 2026

Niterra Co., Ltd. announced a revision to its dividend forecast, increasing the interim dividend per share from 91 yen to 93 yen, with a total expected dividend of 186 yen per share for the fiscal year ending March 31, 2026. This decision reflects the company’s commitment to returning profits to shareholders and maintaining a stable dividend policy, aiming for a dividend on equity (DOE) of around 4% and a payout ratio of approximately 10%.