NGK Spark Plug Co (NGKSY) AI Stock Analysis

• Market Cap: $8.51B
• Dividend Yield: 2.71%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.67
• 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: 94.96
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 6.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $23.50 ▲(9.30% Upside)

NGK Spark Plug Co's overall stock score reflects a solid financial position with strong profitability and a robust balance sheet, despite challenges in revenue growth and cash flow generation. The technical analysis indicates a bullish trend, and the stock's valuation is attractive with a reasonable P/E ratio and a good dividend yield. These factors contribute to a moderately positive outlook for the stock.

Positive Factors

Strong Profitability

NGK Spark Plug Co maintains robust profitability with a gross profit margin of 38.86% and net profit margin of 14.12%, reflecting efficient operations and cost management, which supports long-term financial health.

Robust Balance Sheet

A low debt-to-equity ratio of 0.42 and a strong equity base indicate financial stability, providing NGK with the flexibility to invest in growth opportunities and withstand economic fluctuations.

Technological Advancements

NGK's commitment to R&D ensures its products meet evolving market needs, maintaining its competitive edge and supporting long-term revenue growth in the automotive and industrial sectors.

Negative Factors

Revenue Decline

The substantial drop in revenue suggests challenges in market demand or competitive pressures, potentially impacting future profitability and market position if not addressed.

Cash Flow Challenges

Declining free cash flow indicates difficulties in cash generation, which could limit NGK's ability to fund operations, pay dividends, or invest in growth without increasing debt.

Revenue Growth Concerns

Ongoing revenue growth issues could hinder NGK's ability to expand market share and maintain competitive advantages, impacting long-term strategic objectives.

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 spark plugs and related products to automotive manufacturers and the aftermarket sector. The company's revenue model is supported by several key streams, including OEM (Original Equipment Manufacturer) sales, where NGK supplies spark plugs directly to vehicle manufacturers for new vehicle production, and aftermarket sales, where the company sells products through distributors and retailers for vehicle maintenance and repair. Additionally, NGK benefits from its strong brand reputation and technological advancements, which allow it to command premium pricing. Strategic partnerships with major automotive brands and continuous investment in research and development further contribute to its earnings by ensuring that its products meet the evolving needs of the market.

NGK Spark Plug Co Financial Statement Overview

Summary

NGK Spark Plug Co demonstrates a mixed financial performance. The income statement shows strong profitability with healthy margins, but a significant revenue decline is concerning. The balance sheet is robust with low leverage and strong equity, providing financial stability. However, the cash flow statement highlights challenges in cash generation, with a notable decline in free cash flow.

Income Statement

NGK Spark Plug Co's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.02%, which is concerning. However, the company maintains healthy margins with a gross profit margin of 38.86% and a net profit margin of 14.12%. The EBIT and EBITDA margins are also strong at 20.28% and 26.23%, respectively, indicating efficient operations. Despite the revenue drop, profitability remains robust.

Balance Sheet

The balance sheet of NGK Spark Plug Co reflects a stable financial position. The debt-to-equity ratio is low at 0.42, suggesting manageable leverage. Return on equity is solid at 13.96%, indicating effective use of shareholder funds. The equity ratio stands at 0.40, showing a strong equity base relative to total assets. Overall, the company maintains a healthy balance sheet with low financial risk.

Cash Flow

Cash flow analysis reveals some challenges for NGK Spark Plug Co. The TTM free cash flow growth rate is negative at -43.86%, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.44, suggesting moderate cash conversion efficiency. However, the free cash flow to net income ratio is relatively strong at 0.75, showing that a significant portion of net income is converted into free cash flow. Despite the decline in free cash flow, the company still generates adequate cash relative to its earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	499.56B	652.99B	614.49B	562.56B	491.73B	427.55B
Gross Profit	193.98B	258.10B	226.19B	197.82B	156.17B	130.22B
EBITDA	120.60B	180.14B	145.40B	127.26B	104.22B	81.49B
Net Income	66.46B	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	233.46B	207.92B	219.79B	188.34B	165.79B
Total Debt	2.05B	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	4.89B	674.57B	637.68B	563.67B	514.32B	448.83B
Cash Flow
Free Cash Flow	46.15B	98.14B	82.72B	44.98B	44.07B	33.82B
Operating Cash Flow	60.69B	132.92B	118.18B	69.31B	71.91B	63.40B
Investing Cash Flow	-23.31B	-34.25B	-92.16B	-37.38B	10.23B	-42.52B
Financing Cash Flow	-18.76B	-71.00B	-57.45B	-1.77B	-53.83B	28.17B

NGK Spark Plug Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.50
• 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 21.5 is below the 20-day moving average (MA) of 21.95, above the 50-day MA of 21.48, and above the 200-day MA of 18.28, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 68.27 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
LEA	75 Outperform	$6.54B	15.23	8.96%	2.63%	-1.90%	-13.86%
ALSN	72 Outperform	$8.68B	12.76	40.38%	1.07%	-4.21%	-0.45%
NGKSY	69 Neutral	$8.51B	13.20	13.54%	2.71%	7.48%	12.63%
LKQ	68 Neutral	$8.55B	12.40	10.87%	4.00%	-3.71%	-0.27%
BWA	65 Neutral	$10.22B	76.38	2.24%	1.24%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	55 Neutral	$3.12B	60.41	-4.82%	1.70%	-18.23%	―