NGK Spark Plug Co (NGKSY) AI Stock Analysis

• Market Cap: $6.54B
• Dividend Yield: 3.56%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.58
• Revenue Growth: 0.78%
• EPS Growth: 7.50%
• Country: US
• Employees: 15,980
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 0.30
• Shares Outstanding: 398,495,450
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.41
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.16
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ―

NGK Spark Plug Co demonstrates strong financial performance with robust revenue and profit growth, supported by a solid balance sheet and effective cash flow management. While technical analysis indicates potential near-term volatility due to overbought conditions, the stock remains attractively valued with a low P/E ratio and decent dividend yield. The absence of earnings call and corporate event data means these factors do not influence the current evaluation.

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 automotive components and technical ceramics. The key revenue streams include the manufacturing and distribution of spark plugs, ignition coils, and various sensors used in automotive applications. Additionally, the company produces cutting-edge ceramics for medical and industrial use. Partnerships with major automotive manufacturers and a robust global distribution network significantly contribute to its earnings, allowing NGK Spark Plug to maintain a strong presence in both mature and emerging markets.

NGK Spark Plug Co Financial Statement Overview

Summary

NGK Spark Plug Co exhibits a strong financial profile with consistent revenue and profit growth, solid profitability margins, and effective cash flow management. The company maintains a healthy balance sheet with low leverage, enhancing financial stability. While there are fluctuations in debt levels and cash flow components, the overall trajectory remains positive, positioning the company well in the vehicles industry.

Income Statement

NGK Spark Plug Co has demonstrated consistent revenue growth, with a notable increase in revenue from ¥426.1 billion in 2020 to ¥614.5 billion in 2024. The gross profit margin has improved to 36.8% in 2024, up from 31.4% in 2020, indicating enhanced profitability. The net profit margin has also strengthened to 13.4% in 2024. However, the growth in EBIT margin to 17.5% suggests slightly lower efficiency compared to its EBITDA margin of 23.7%, highlighting increased depreciation or amortization costs. Overall, the income statement reflects robust financial performance with strong profitability and growth trends.

Balance Sheet

The company maintains a solid equity position with a debt-to-equity ratio of 0.28 as of 2024, indicating low leverage and prudent financial management. The equity ratio of 65.3% reflects a strong reliance on equity financing. Return on equity (ROE) has improved to 12.96% in 2024 from 8.51% in 2020, showing enhanced efficiency in generating profits from shareholders' equity. While the balance sheet is generally strong, the company has experienced fluctuations in total debt levels over the years.

Cash Flow

NGK Spark Plug Co has shown significant growth in free cash flow, from ¥6.2 billion in 2020 to ¥82.7 billion in 2024, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.43, suggesting effective cash earnings generation. The free cash flow to net income ratio of 1.00 in 2024 further underscores strong cash flow management. Despite these strengths, the company has faced volatility in investing and financing cash flows, which could pose risks.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	631.99B	614.49B	562.56B	491.73B	427.55B	426.07B
Gross Profit	237.50B	226.19B	197.82B	156.17B	130.22B	133.78B
EBITDA	156.47B	145.40B	127.26B	104.22B	81.49B	79.23B
Net Income	86.42B	82.65B	66.29B	60.20B	38.37B	33.70B
Balance Sheet
Total Assets	967.28B	975.72B	903.10B	823.18B	771.29B	663.37B
Cash, Cash Equivalents and Short-Term Investments	163.19B	207.92B	219.79B	188.34B	165.79B	91.99B
Total Debt	156.19B	178.11B	186.42B	154.74B	187.54B	142.66B
Total Liabilities	312.87B	337.42B	339.36B	305.19B	319.67B	263.64B
Stockholders Equity	654.03B	637.68B	563.67B	514.32B	448.83B	395.88B
Cash Flow
Free Cash Flow	93.97B	82.72B	44.98B	44.07B	33.82B	6.23B
Operating Cash Flow	131.58B	118.18B	69.31B	71.91B	63.40B	59.79B
Investing Cash Flow	-93.22B	-92.16B	-37.38B	10.23B	-42.52B	-52.93B
Financing Cash Flow	-78.00B	-57.45B	-1.77B	-53.83B	28.17B	7.43B

NGK Spark Plug Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.45 is above the 20-day moving average (MA) of 16.05, above the 50-day MA of 16.04, and above the 200-day MA of 15.30, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.00 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
APTV	79 Outperform	$14.98B	11.40	15.52%	―	-2.47%	-43.12%
BWA	76 Outperform	$7.38B	27.02	5.38%	1.31%	-8.22%	-52.61%
LEA	75 Outperform	$5.04B	11.06	10.00%	3.26%	-3.15%	-6.70%
ALV	75 Outperform	$8.74B	13.03	28.71%	2.48%	-2.29%	35.00%
NGKSY	74 Outperform	$6.54B	10.76	13.91%	3.56%	0.78%	7.50%
GNTX	66 Neutral	$4.94B	12.89	15.90%	2.18%	-1.66%	-9.20%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%