NGK Spark Plug Co (NGKSY) AI Stock Analysis

• Market Cap: $8.65B
• Dividend Yield: 2.8%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.69
• Revenue Growth: 7.48%
• EPS Growth: 12.63%
• Country: US
• Employees: 15,980
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.51
• Shares Outstanding: 398,495,450
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.68
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 8.87
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $22.00 ▲(3.00% Upside)

NGK Spark Plug Co's strong financial performance and reasonable valuation are significant strengths, supporting a positive outlook. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong market demand and a solid market position, supporting long-term business expansion and competitiveness.

Profitability

High profitability margins reflect efficient operations and pricing power, which are crucial for sustaining long-term financial health and shareholder value.

Market Position

Serving OEMs and the aftermarket secures a diversified revenue base, reducing dependency on single market segments and enhancing resilience against market fluctuations.

Negative Factors

Rising Debt Levels

Rising debt levels could strain financial flexibility and increase interest obligations, potentially impacting future investment capacity and operational stability.

Free Cash Flow Decline

A decline in free cash flow growth could limit the company's ability to fund new projects and return capital to shareholders, affecting long-term growth prospects.

Operational Efficiency

Decreasing operational efficiency may signal rising costs or competitive pressures, which could erode profitability if not addressed, impacting long-term sustainability.

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 generates revenue primarily through the sale of its core products, which include spark plugs, glow plugs, and ignition coils. The automotive sector is the largest segment, accounting for a significant portion of its sales, as NGK serves both original equipment manufacturers (OEMs) and the aftermarket. Additionally, NGK has developed partnerships with major automotive manufacturers, ensuring a steady demand for its products. Revenue is further bolstered by its diversification into industrial applications and sensor technology, which provides additional income streams. The company also invests in research and development to innovate and improve product offerings, thereby attracting new customers and maintaining competitiveness in the market.

NGK Spark Plug Co Financial Statement Overview

Summary

NGK Spark Plug Co shows strong financial health with significant revenue growth and solid profitability. The balance sheet is stable with moderate leverage, but rising debt levels need monitoring. Cash flow is adequate, though a decline in free cash flow growth could impact future investments.

Income Statement

NGK Spark Plug Co has demonstrated strong revenue growth with a TTM increase of 68.6%, indicating robust demand and market position. The company maintains healthy profitability with a gross profit margin of 39.18% and a net profit margin of 13.51% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to the previous annual report, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.45, indicating moderate leverage. The return on equity remains strong at 13.27%, showcasing effective use of shareholder funds. The equity ratio of 59.02% highlights a stable financial structure, although the increase in total debt warrants monitoring.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 11.4% in the TTM, which could impact future investments. The operating cash flow to net income ratio of 0.47 suggests adequate cash generation relative to earnings, while the free cash flow to net income ratio of 0.77 indicates efficient cash conversion.

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	163.18B	180.14B	145.40B	127.26B	104.22B	81.49B
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	233.46B	207.92B	219.79B	188.34B	165.79B
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	98.14B	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: 21.36
• 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 NGKSY, the sentiment is Positive. The current price of 21.36 is above the 20-day moving average (MA) of 21.09, above the 50-day MA of 20.30, and above the 200-day MA of 17.33, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGKSY.

NGK Spark Plug Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGKSY	75 Outperform	$8.65B	13.38	13.54%	2.80%	7.48%	12.63%
LEA	75 Outperform	$5.59B	13.19	8.96%	2.96%	-1.90%	-13.86%
BWA	72 Outperform	$9.19B	68.84	2.24%	1.10%	0.08%	-83.69%
LKQ	70 Neutral	$7.57B	10.98	10.87%	4.06%	-3.71%	-0.27%
ALSN	68 Neutral	$7.45B	10.95	40.38%	1.21%	-4.21%	-0.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	54 Neutral	$2.63B	50.88	-4.82%	1.78%	-18.23%	―