NGK Insulators, Ltd. (5333) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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TOKYO OHKA KOGYO CO., LTD.

GS Yuasa Corp.

NGK Insulators, Ltd.

NIDEC Corp.

Tokai Carbon Co., Ltd.

Why is NGK Insulators, Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 15.77% of over the last 5 years

With a growth in Operating Profit of 43.25%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 7 consecutive quarters
ROCE(HY) Highest at 7.84%
DEBT-EQUITY RATIO (HY) Lowest at -9.67 %
RAW MATERIAL COST(Y) Fallen by 0.54% (YoY)

With ROE of 9.73%, it has a very attractive valuation with a 1.56 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 343.05%, its profits have risen by 38.6% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 343.05% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NGK Insulators, Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NGK Insulators, Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

NGK Insulators, Ltd.

343.05%

1616.12

36.89%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.59%

EBIT Growth (5y)

15.77%

EBIT to Interest (avg)

18.54

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.62

Tax Ratio

24.08%

Dividend Payout Ratio

32.27%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

10.37%

ROE (avg)

8.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.56

EV to EBIT

12.78

EV to EBITDA

7.89

EV to Capital Employed

1.60

EV to Sales

1.80

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

12.51%

ROE (Latest)

9.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

ROCE(HY)

Highest at 7.84%

DEBT-EQUITY RATIO (HY)

Lowest at -9.67 %

RAW MATERIAL COST(Y)

Fallen by 0.54% (YoY

CASH AND EQV(HY)

Highest at JPY 620,919 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.81

NET SALES(Q)

Highest at JPY 182,217 MM

PRE-TAX PROFIT(Q)

Highest at JPY 31,699 MM

NET PROFIT(Q)

Highest at JPY 21,988.64 MM

EPS(Q)

Highest at JPY 65.08

-1What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 19.8 %

Here's what is working for NGK Insulators, Ltd.

Debt-Equity Ratio

Lowest at -9.67 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at JPY 182,217 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 31,699 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 31,699 MM has Grown at 78.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 21,988.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 65.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 620,919 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 0.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 14,864 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for NGK Insulators, Ltd.

Operating Profit Margin

Lowest at 19.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales