NGK Spark Plug Co., Ltd.
NGK Spark Plug Co., Ltd. Fundamental Analysis
NGK Spark Plug Co., Ltd. (NGKSY) shows moderate financial fundamentals with a PE ratio of 15.88, profit margin of 14.69%, and ROE of 14.57%. The company generates $700.9B in annual revenue with moderate year-over-year growth of 6.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NGKSY's fundamental strength across five key dimensions:
Efficiency Score
WeakNGKSY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNGKSY trades at attractive valuation levels.
Growth Score
ExcellentNGKSY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNGKSY maintains a strong and stable balance sheet.
Profitability Score
WeakNGKSY struggles to sustain strong margins.
Key Financial Metrics
Is NGKSY Expensive or Cheap?
P/E Ratio
NGKSY trades at 15.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NGKSY's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values NGK Spark Plug Co., Ltd. at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.30 times EBITDA. This is generally considered low.
How Well Does NGKSY Make Money?
Net Profit Margin
For every $100 in sales, NGK Spark Plug Co., Ltd. keeps $14.69 as profit after all expenses.
Operating Margin
Core operations generate 19.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.57 in profit for every $100 of shareholder equity.
ROA
NGK Spark Plug Co., Ltd. generates $8.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NGK Spark Plug Co., Ltd. produces operating cash flow of $95.16B, showing steady but balanced cash generation.
Free Cash Flow
NGK Spark Plug Co., Ltd. produces free cash flow of $68.89B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $173.60 in free cash annually.
FCF Yield
NGKSY converts 4.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How NGKSY Stacks Against Its Sector Peers
| Metric | NGKSY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.88 | 23.64 | Better (Cheaper) |
| ROE | 14.57% | 1155.00% | Weak |
| Net Margin | 14.69% | 669.00% | Weak |
| Debt/Equity | 0.41 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.25 | 2.57 | Strong Liquidity |
| ROA | 8.35% | -8241.00% (disorted) | Weak |
NGKSY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NGK Spark Plug Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.47%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
186.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
131.33%
Industry Style: Cyclical, Growth, Discretionary
High Growth