Daily Stock Analysis: Niterra Co.

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Niterra Co Ltd (NGKSY) is a producer of spark plugs for internal combustion engines in the automotive industry. It also makes various ceramic products and tools.

Under its two brands NGK Spark Plugs and NTK Technical Ceramics, the company produces spark plugs, glow plugs, sensors, semiconductor packages, cutting tools, medical products, and fine ceramics.

NGK's largest end markets are Asia including Japan, North America, and Europe. The company produces in Japan and Brazil, while subsidiaries across the globe assemble and sell parts in their respective regions.

The automotive components division generates the lion's share of sales for NGK Spark Plug.

The company was formerly known as NGK Spark Plug Co., Ltd. and changed its name to Niterra Co., Ltd. in April 2023.

Niterra Co., Ltd. was founded in 1936 and is headquartered in Nagoya, Japan.

Three key data points gauge Niterra Co Ltd or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

NGKSY Price

Over the past year, Niterra’s share rose about 11.7% from $10.07 to $11.25 as of Tuesday’s market close.

If Niterra’s stock trades in the range of $7.00 to $15.00 this next year, its recent $11.25 share price might rise to $12.50 by next year. Of course, Niterra’s price could drop about the same $1.25 amount or more.

My upside estimate of $1.25, however, is just about 75% of the average annual Niterra Co annual price gains over the past three years.
 

NGKSY Dividend

Niterra’s most recent variable dividends have been paid semi-annually, since 2017. Niterra’s most recent dividend, paid May 4th, was $0.30   Niterra Co Ltd’s  Annual dividend payout has varied from $0.23 in 2017 to $0.60 in 2023. The average of those seven annual payouts is about $0.35.  However, I used the most recent $0.60 payments as the next likely annual dividend.
 

NGKSY Returns

Adding the $0.60  anticipated annual dividend to Niterra Co Ltd’s estimated $1.25 price upside reveals a $1.85 potential gross gain per share for the coming year.

At Tuesday’s $11.25 closing price, a little over $1000 would buy 89 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.

Subtracting that maybe $0.11 brokerage cost from my estimated $1.85 gross gain per share makes a net gain amounting to $1.74 X 88 shares = $153.12 for about a 15.3% net gain.

This may be the time to pounce on Niterra Co Ltd shares. But beware, Niterra Co Ltd is a somewhat thinly traded stock and moves slowly. However, the estimated $52.60 dividend from $1000 invested comes in at 4.67 times more than the recent single share price. The choice is yours.

The foregoing article is based on past history of Niterra Co Ltd. The only accurate measure of future performance is from active investment in the company.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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