Daily Stock Analysis: NGK Spark Plug

By Fredrik Arnold
Monday, February 6, 2023 3:56 PM EDT

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NGK Spark Plug Co Ltd bears the ticker symbol NGKSF, and this is my first mention of NGK Spark Plug Co Ltd for this new Viking Portfolio or any of my previous seven dog of the week folios.

NGK Spark Plug Co Ltd is a producer of spark plugs for internal combustion engines in the automotive industry and 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 components 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 sells its spark and glow plugs under the NGK brand; and sensors, semiconductor packages/substrates, cutting tools, oxygen concentrators, and piezoelectric and fine ceramics under the NTK brand.

The company was founded in 1936 and is headquartered in Nagoya, Japan.

Three key data points gauge

NGK Spark Plug Co Ltd, or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

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


NGKSF Price

NGK Spark Plug Co Ltd price per share was $19.75 at Monday’s market close. In the past year, NGKSF share price increased by $1.73 or about 9.6%.

If NGKSF stock trades in the range of $15.00 to $25.00 this next year, its recent $19.75 share price might reach $21.35 by next year. That upside estimate of $1.60 is about 42% of the average annual increase in NGKSF share price over the past 30 months.

NGKSF Dividends

NGK Spark Plug Co Ltd most recent semi-annual variable dividend of $0.60 cast a forward annual yield of 6.08%.


NGKSF Returns

Adding the $.60 annual estimated

NGK Spark Plug Co Ltd dividend to the one-year price upside estimate of $1.60 reveals a $2.20 potential gross gain estimate per share.

At Friday’s $19.75 closing price, a little over $1000 would buy 51 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $2.20 gross gain makes a net gain of $2.00 X 51 shares = $102.00 for a 10.2% net gain including the 6.08% annual dividend yield.

In the next year our $1K investment in shares of NGK Spark Plug Co Ltd would generate $60.80 in cash dividends. However, a single share of NGKSF stock at Friday’s $19.75 price is over 3 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to buy

NGK Spark Plug Co Ltd shares based on their dividends for 2023. The current dividend from $1K invested is 3.08 times higher than the NGKSF single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of NGK Spark Plug Co Ltd. Only time and money invested in this stock will determine its future market value.

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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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