271.275 USD
-2.67 (-0.97%)
271.275 USD
0 (0%)
Taking everything into account, NDSN scores 6 out of 10 in our fundamental rating. NDSN was compared to 132 industry peers in the Machinery industry. NDSN scores excellent on profitability, but there are some minor concerns on its financial health. NDSN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NDSN was profitable.
- In the past year NDSN had a positive cash flow from operations.
- Each year in the past 5 years NDSN has been profitable.
- In the past 5 years NDSN always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 8.19%, NDSN is doing good in the industry, outperforming 75.76% of the companies in the same industry.
- NDSN's Return On Equity of 15.92% is fine compared to the rest of the industry. NDSN outperforms 75.76% of its industry peers.
- NDSN's Return On Invested Capital of 11.29% is fine compared to the rest of the industry. NDSN outperforms 78.03% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NDSN is in line with the industry average of 10.24%.
- The 3 year average ROIC (10.94%) for NDSN is below the current ROIC(11.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 15.92% | ||
| ROIC | 11.29% |
ROA(3y)8.42%
ROA(5y)10.13%
ROE(3y)16.87%
ROE(5y)18.81%
ROIC(3y)10.94%
ROIC(5y)13.31%
1.3 Margins
- The Profit Margin of NDSN (17.35%) is better than 93.18% of its industry peers.
- In the last couple of years the Profit Margin of NDSN has grown nicely.
- NDSN has a better Operating Margin (25.94%) than 97.73% of its industry peers.
- In the last couple of years the Operating Margin of NDSN has grown nicely.
- NDSN has a better Gross Margin (55.16%) than 95.45% of its industry peers.
- In the last couple of years the Gross Margin of NDSN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.94% | ||
| PM (TTM) | 17.35% | ||
| GM | 55.16% |
OM growth 3Y-1.36%
OM growth 5Y4.79%
PM growth 3Y-4.31%
PM growth 5Y8.09%
GM growth 3Y0.05%
GM growth 5Y0.69%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NDSN is still creating some value.
- The number of shares outstanding for NDSN has been reduced compared to 1 year ago.
- NDSN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for NDSN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.28 indicates that NDSN is not in any danger for bankruptcy at the moment.
- NDSN's Altman-Z score of 5.28 is fine compared to the rest of the industry. NDSN outperforms 74.24% of its industry peers.
- NDSN has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as NDSN would need 3.04 years to pay back of all of its debts.
- NDSN's Debt to FCF ratio of 3.04 is fine compared to the rest of the industry. NDSN outperforms 68.94% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that NDSN is somewhat dependend on debt financing.
- NDSN has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 5.28 |
ROIC/WACC1.18
WACC9.6%
2.3 Liquidity
- NDSN has a Current Ratio of 1.64. This is a normal value and indicates that NDSN is financially healthy and should not expect problems in meeting its short term obligations.
- NDSN has a worse Current ratio (1.64) than 67.42% of its industry peers.
- A Quick Ratio of 1.05 indicates that NDSN should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.05, NDSN is doing worse than 62.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.13% over the past year.
- The Earnings Per Share has been growing by 13.32% on average over the past years. This is quite good.
- NDSN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.78%.
- Measured over the past years, NDSN shows a small growth in Revenue. The Revenue has been growing by 5.65% on average per year.
EPS 1Y (TTM)5.13%
EPS 3Y2.78%
EPS 5Y13.32%
EPS Q2Q%8.99%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y2.53%
Revenue growth 5Y5.65%
Sales Q2Q%0.99%
3.2 Future
- Based on estimates for the next years, NDSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
- NDSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y12.17%
EPS Next 2Y9.9%
EPS Next 3Y9.71%
EPS Next 5Y9.84%
Revenue Next Year3.82%
Revenue Next 2Y4.37%
Revenue Next 3Y5.27%
Revenue Next 5Y7.62%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- NDSN is valuated quite expensively with a Price/Earnings ratio of 26.49.
- Compared to the rest of the industry, the Price/Earnings ratio of NDSN is on the same level as its industry peers.
- NDSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 23.62, NDSN is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NDSN is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NDSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 23.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NDSN is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, NDSN is valued a bit cheaper than 62.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.06 | ||
| EV/EBITDA | 19.77 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NDSN does not grow enough to justify the current Price/Earnings ratio.
- NDSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.99
EPS Next 2Y9.9%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
- NDSN has a Yearly Dividend Yield of 1.21%.
- Compared to an average industry Dividend Yield of 0.98, NDSN pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, NDSN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
- The dividend of NDSN is nicely growing with an annual growth rate of 15.71%!
- NDSN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)15.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- NDSN pays out 36.96% of its income as dividend. This is a sustainable payout ratio.
- NDSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.96%
EPS Next 2Y9.9%
EPS Next 3Y9.71%
NORDSON CORP / NDSN FAQ
Can you provide the ChartMill fundamental rating for NORDSON CORP?
ChartMill assigns a fundamental rating of 6 / 10 to NDSN.
What is the valuation status for NDSN stock?
ChartMill assigns a valuation rating of 3 / 10 to NORDSON CORP (NDSN). This can be considered as Overvalued.
Can you provide the profitability details for NORDSON CORP?
NORDSON CORP (NDSN) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for NDSN stock?
The Price/Earnings (PE) ratio for NORDSON CORP (NDSN) is 26.49 and the Price/Book (PB) ratio is 5.01.
What is the expected EPS growth for NORDSON CORP (NDSN) stock?
The Earnings per Share (EPS) of NORDSON CORP (NDSN) is expected to grow by 12.17% in the next year.