NGK Spark Plug (TSE:5334) - Share price, News & Analysis

5334 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	4/6
Financial Health	5/6
Dividends	6/6

5334 Stock Overview

Rewards

Trading at 52.2% below our estimate of its fair value

Earnings are forecast to grow 3.23% per year

Earnings have grown 7.8% per year over the past 5 years

Pays a high and reliable dividend of 5.91%

Risk Analysis

Volatile share price over the past 3 months

NGK Spark Plug Competitors

DENSO

TSE:6902

JP¥5.7t

Ford Motor

NYSE:F

US$54.3b

Hitachi

TSE:6501

JP¥6.2t

Aptiv

NYSE:APTV

US$26.6b

Price History & Performance

Summary of all time highs, changes and price drops for NGK Spark Plug
Historical stock prices
Current Share Price	JP¥2,337.00
52 Week High	JP¥2,370.00
52 Week Low	JP¥1,559.00
Beta	0.89
1 Month Change	21.91%
3 Month Change	9.00%
1 Year Change	43.37%
3 Year Change	20.22%
5 Year Change	1.26%
Change since IPO	207.50%

Shareholder Returns

	5334	JP Auto Components	JP Market
7D	0.9%	-1.5%	-2.7%
1Y	43.4%	-6.0%	-2.5%

Return vs Industry: 5334 exceeded the JP Auto Components industry which returned -6% over the past year.

Return vs Market: 5334 exceeded the JP Market which returned -2.5% over the past year.

Price Volatility

Is 5334's price volatile compared to industry and market?
5334 volatility
5334 Average Weekly Movement	6.8%
Auto Components Industry Average Movement	4.8%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 5334 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 5334's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
1936	16,391	Takeshi Kawai	https://www.ngkntk.co.jp/english

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.

NGK Spark Plug Fundamentals Summary

How do NGK Spark Plug's earnings and revenue compare to its market cap?
5334 fundamental statistics
Market Cap	JP¥481.38b
Earnings (TTM)	JP¥60.20b
Revenue (TTM)	JP¥491.73b

7.9x

P/E Ratio

1.0x

P/S Ratio

Is 5334 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5334 income statement (TTM)
Revenue	JP¥491.73b
Cost of Revenue	JP¥335.56b
Gross Profit	JP¥156.17b
Other Expenses	JP¥95.97b
Earnings	JP¥60.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	296.13
Gross Margin	31.76%
Net Profit Margin	12.24%
Debt/Equity Ratio	29.9%

How did 5334 perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

28%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 5334 (¥2337) is trading below our estimate of fair value (¥4886.52)

Significantly Below Fair Value: 5334 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 5334's PE Ratio (7.9x) is in line with the JP Auto Components industry average.

PE vs Market: 5334 is good value based on its PE Ratio (7.9x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: 5334 is poor value based on its PEG Ratio (2.4x)

Price to Book Ratio

PB vs Industry: 5334 is overvalued based on its PB Ratio (0.9x) compared to the JP Auto Components industry average (0.4x).

Future Growth

How is NGK Spark Plug forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5334's forecast earnings growth (3.2% per year) is above the savings rate (0.02%).

Earnings vs Market: 5334's earnings (3.2% per year) are forecast to grow slower than the JP market (8.8% per year).

High Growth Earnings: 5334's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5334's revenue (4.7% per year) is forecast to grow faster than the JP market (4.2% per year).

High Growth Revenue: 5334's revenue (4.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 5334's Return on Equity is forecast to be low in 3 years time (11.2%).

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5334 has high quality earnings.

Growing Profit Margin: 5334's current net profit margins (12.2%) are higher than last year (9%).

Past Earnings Growth Analysis

Earnings Trend: 5334's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: 5334's earnings growth over the past year (56.9%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: 5334 earnings growth over the past year (56.9%) underperformed the Auto Components industry 60.7%.

Return on Equity

High ROE: 5334's Return on Equity (11.5%) is considered low.

Financial Health

How is NGK Spark Plug's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 5334's short term assets (¥482.3B) exceed its short term liabilities (¥135.6B).

Long Term Liabilities: 5334's short term assets (¥482.3B) exceed its long term liabilities (¥169.6B).

Debt to Equity History and Analysis

Debt Level: 5334 has more cash than its total debt.

Reducing Debt: 5334's debt to equity ratio has increased from 27.9% to 29.9% over the past 5 years.

Debt Coverage: 5334's debt is well covered by operating cash flow (46.5%).

Interest Coverage: 5334 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5334's dividend (5.91%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 5334's dividend (5.91%) is in the top 25% of dividend payers in the JP market (3.61%)

Stability and Growth of Payments

Stable Dividend: 5334's dividends per share have been stable in the past 10 years.

Growing Dividend: 5334's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28%), 5334's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (63.7%), 5334's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Automobiles industry.

Management

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

3.9yrs

Average board tenure

CEO

Takeshi Kawai

3.08yrs

Tenure

JP¥121,000,000

Compensation

Mr. Takeshi Kawai is a President and Chief Operating Officer of NGK Spark Plug Co., Ltd. since April 2019. Mr. Kawai was a Senior Managing Officer at NGK Spark Plug Co., Ltd.on April 7, 2016. Mr. Kawai se...

CEO Compensation Analysis

Compensation vs Market: Takeshi's total compensation ($USD936.34K) is about average for companies of similar size in the JP market ($USD998.25K).

Compensation vs Earnings: Insufficient data to compare Takeshi's compensation with company performance.

Board Members

Experienced Board: 5334's board of directors are considered experienced (3.9 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31