Photo by Wance Paleri on Unsplash
 

Niterra Co Ltd, bearing the ticker symbol NGKSY, has never been mentioned as a candidate for any of my previous seven stock portfolios. This mention for Viking is its first.

Niterra Co Ltd is a producer of spark plugs for internal combustion engines in the automotive industry as well as 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 Niterra Co Ltd.

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. They 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 price per share fell about 2.3% from $9.55 to $9.33 as of Tuesday’s market close.

If Niterra’s stock trades in the range of $7.00 to $11.00 this next year, its recent $9.33 share price might get up to $10.00 by next year. Of course, Niterra’s price could go down about the same $0.67 amount, or more.

My upside estimate of $0.67 is about equal to the average of Niterra’s annual price increases over the past three years.
 

NGKSY Dividend

Niterra Co Ltd’s recent $0.30 semi-annual variable dividend pans out to $0.51 annually to yield 5.44% at Tuesday’s closing price.
 

NGKSY Returns

Adding the $0.51 projected annual dividend to my estimated $0.67 price upside reveals a $1.18 potential gross gain per share for the coming year.

At Tuesday’s $9.33 closing price, a little under $1000 would buy 107 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.09 per share.

Subtracting that maybe $0.09 brokerage cost from my estimated $1.18 gross gain per share makes a net gain amounting to $1.09 X 107 shares = $106.63 or a 10.6% net gain.

In the next year, our $1K investment in shares of NGKSY could generate about $54.40 in dividends. Furthermore, a single share of NGKSY’s stock at Tuesday’s $9.33  closing price is almost one-sixth the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this may be the time to buy Niterra Co Ltd based on its estimated dividends for 2023. The dividend from the $1k invested is 5.83 times greater than Niterra Co Ltd’s single-share price. Consider yourself alerted.

This may be a time to pounce on Niterra. But beware, its price is range-bound, and over $6.00 below its all-time $15.75 high posted in July of 2018.

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

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