DB:NGK

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has NGK Spark Plug's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NGK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

NGK

3.8%

DE Auto Components

0.7%

DE Market


1 Year Return

-17.2%

NGK

-16.4%

DE Auto Components

7.5%

DE Market

Return vs Industry: NGK exceeded the German Auto Components industry which returned -18.7% over the past year.

Return vs Market: NGK underperformed the German Market which returned 5.4% over the past year.


Shareholder returns

NGKIndustryMarket
7 Day-2.7%3.8%0.7%
30 Day2.1%1.1%-1.1%
90 Day17.1%2.8%0.9%
1 Year-14.2%-17.2%-13.6%-16.4%10.7%7.5%
3 Year-13.6%-21.2%-50.9%-55.4%1.7%-7.2%
5 Year-25.5%-34.9%-41.8%-48.6%31.1%12.4%

Price Volatility Vs. Market

How volatile is NGK Spark Plug's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NGK Spark Plug undervalued compared to its fair value and its price relative to the market?

14.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NGK (€14.4) is trading above our estimate of fair value (€12.93)

Significantly Below Fair Value: NGK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NGK is good value based on its PE Ratio (14.2x) compared to the XE Auto Components industry average (21.9x).

PE vs Market: NGK is good value based on its PE Ratio (14.2x) compared to the German market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: NGK is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NGK is good value based on its PB Ratio (0.9x) compared to the DE Auto Components industry average (1.3x).


Next Steps

Future Growth

How is NGK Spark Plug forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGK's forecast earnings growth (13.3% per year) is above the savings rate (0.2%).

Earnings vs Market: NGK's earnings (13.3% per year) are forecast to grow slower than the German market (27.8% per year).

High Growth Earnings: NGK's earnings are forecast to grow, but not significantly.

Revenue vs Market: NGK's revenue (3.6% per year) is forecast to grow slower than the German market (6.2% per year).

High Growth Revenue: NGK's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NGK's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has NGK Spark Plug performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NGK has high quality earnings.

Growing Profit Margin: NGK's current net profit margins (6.7%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: NGK's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: NGK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NGK had negative earnings growth (-31.9%) over the past year, making it difficult to compare to the Auto Components industry average (-45.5%).


Return on Equity

High ROE: NGK's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is NGK Spark Plug's financial position?


Financial Position Analysis

Short Term Liabilities: NGK's short term assets (¥340.9B) exceed its short term liabilities (¥120.3B).

Long Term Liabilities: NGK's short term assets (¥340.9B) exceed its long term liabilities (¥175.2B).


Debt to Equity History and Analysis

Debt Level: NGK's debt to equity ratio (46.2%) is considered high.

Reducing Debt: NGK's debt to equity ratio has increased from 15.3% to 46.2% over the past 5 years.

Debt Coverage: NGK's debt is well covered by operating cash flow (29.2%).

Interest Coverage: NGK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is NGK Spark Plug current dividend yield, its reliability and sustainability?

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NGK's dividend (2.73%) is higher than the bottom 25% of dividend payers in the German market (1.15%).

High Dividend: NGK's dividend (2.73%) is low compared to the top 25% of dividend payers in the German market (3.67%).


Stability and Growth of Payments

Stable Dividend: NGK's dividends per share have been stable in the past 10 years.

Growing Dividend: NGK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.3%), NGK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure


CEO

NGK Spark Plug has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Takeshi Kawai
President5.25yrsno data0.0020%
¥ 59.2k
Takio Kojima
Managing Officer & Director2.25yrsno data0.0025%
¥ 73.9k
Toru Matsui
Executive Vice President & Director2.25yrsno data0.0025%
¥ 73.9k
Mikihiko Kato
Executive Officer & Director3.25yrsno data0.0015%
¥ 44.2k
Kenji Isobe
Executive Officer & Director2.25yrsno data0.0044%
¥ 132.9k
Hiroyuki Maeda
Executive Officer & Director1.25yrsno data0.00049%
¥ 14.7k
Shinichi Odo
Chairman of the Board4.42yrsJP¥129.00m0.010%
¥ 310.2k
Morihiko Otaki
Independent Outside Director7.25yrsno data0.00049%
¥ 14.7k
Kanemaru Yasui
Independent Outside Director6.25yrsno data0.00049%
¥ 14.7k
Yoshihiro Matsubara
Audit & Supervisory Board Member1.25yrsno data0.0029%
¥ 88.7k
Mackenzie Clugston
Independent Outside Director1.25yrsno datano data
Yasuhiko Hotta
Standing Audit & Supervisory Board Member3.25yrsno data0.00098%
¥ 29.5k

2.8yrs

Average Tenure

69yo

Average Age

Experienced Board: NGK's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NGK Spark Plug Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NGK Spark Plug Co., Ltd.
  • Ticker: NGK
  • Exchange: DB
  • Founded: 1936
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: JP¥372.282b
  • Listing Market Cap: JP¥3.006b
  • Shares outstanding: 203.43m
  • Website: https://www.ngkntk.co.jp/english

Number of Employees


Location

  • NGK Spark Plug Co., Ltd.
  • 14-18, Takatsuji-cho
  • Mizuho-ku
  • Nagoya
  • Aichi
  • 467-8525
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
5334TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NGKS.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
NGKS.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

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. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 21:36
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.