Fact based stock research
NGK Insulators (TSE:5333)

JP3695200000

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

NGK Insulators stock research in summary

ngk.co.jp

ANALYSIS: With an Obermatt Combined Rank of 54 (better than 54% compared with investment alternatives), NGK Insulators (Industrial Machinery, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of NGK Insulators are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives) but show below-average growth (Growth Rank of 35), and are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 54, is a buy recommendation based on NGK Insulators's financial characteristics. As the company NGK Insulators's key financial metrics exhibit good value (Obermatt Value Rank of 79) but low growth (Obermatt Growth Rank of 35) and risky financing practices (Obermatt Safety Rank of 46), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 79% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	79
Growth Rank	35
Safety Rank	46
Combined Rank	54

Country	Japan
Industry	Industrial Machinery
Index	Energy Efficient, Nikkei 225
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: NGK Insulators

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	90	81	87	79
GROWTH
GROWTH	76	83	7	35
SAFETY
SAFETY	73	45	54	46
SENTIMENT
SENTIMENT	n/a	72	39	^new
360° VIEW
360° VIEW	n/a	87	42	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better NGK Insulators is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	90	81	87	79
GROWTH
GROWTH	76	83	7	35
SAFETY
SAFETY	73	45	54	46
COMBINED
COMBINED	97	88	46	54

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of NGK Insulators the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2024, NGK Insulators shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for NGK Insulators. Price-to-Sales is 64 which means that the stock price compared with what market professionals expect for future sales is lower than for 64% of comparable companies, indicating a good value for NGK Insulators's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 79% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 88. Compared with other companies in the same industry, dividend yields of NGK Insulators are expected to be higher than for 65% of all competitors (a Dividend Yield rank of 65). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on NGK Insulators's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in NGK Insulators based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	64	53	69	64
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	93	88	78	79
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	86	72	91	88
DIVIDEND YIELD
DIVIDEND YIELD	82	77	70	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	90	81	87	79

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of NGK Insulators; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), NGK Insulators shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for NGK Insulators. Profit Growth has a rank of 77, which means that currently professionals expect the company to grow its profits more than 77% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 59 (above 59% of alternative investments). But Sales Growth has a below the median rank of 12, which means that, currently, professionals expect the company to grow less than 88% of its competitors, and Capital Growth also has a lower rank of 24. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for NGK Insulators. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	56	13	29	12
PROFIT GROWTH
PROFIT GROWTH	1	60	21	77
CAPITAL GROWTH
CAPITAL GROWTH	n/a	100	66	24
STOCK RETURNS
STOCK RETURNS	62	75	25	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	76	83	7	35

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of NGK Insulators.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company NGK Insulators has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of NGK Insulators is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for NGK Insulators and the other two below average. Refinancing is at 91, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 91% of its competitors. But Leverage is high with a rank of 24, meaning the company has an above-average debt-to-equity ratio. It has more debt than 76% of its competitors. Liquidity is also on the riskier side with a rank of 37, meaning the company generates less profit to service its debt than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 46 (worse than 54% compared with alternatives), NGK Insulators has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for NGK Insulators are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with NGK Insulators and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	42	34	24	24
REFINANCING
REFINANCING	90	73	97	91
LIQUIDITY
LIQUIDITY	54	34	31	37
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	73	45	54	46

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of NGK Insulators and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	56	1	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	32	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	58	53	^new
MARKET PULSE
MARKET PULSE	n/a	73	58	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	72	39	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for NGK Insulators.
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