NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - Nasdaq - US6556631025 - Common Stock - Currency: USD
Taking everything into account, NDSN scores 6 out of 10 in our fundamental rating. NDSN was compared to 127 industry peers in the Machinery industry. NDSN has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, NDSN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NDSN had positive earnings in the past year.
In the past year NDSN had a positive cash flow from operations.
Each year in the past 5 years NDSN has been profitable.
NDSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.37%, NDSN is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
NDSN has a better Return On Equity (15.08%) than 71.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.40%, NDSN is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
NDSN had an Average Return On Invested Capital over the past 3 years of 13.32%. This is above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.08% | ||
| ROIC | 9.4% |
ROA(3y)10.17%
ROA(5y)9.86%
ROE(3y)19.02%
ROE(5y)18.46%
ROIC(3y)13.32%
ROIC(5y)13.01%
1.3 Margins
Looking at the Profit Margin, with a value of 16.51%, NDSN belongs to the top of the industry, outperforming 91.34% of the companies in the same industry.
NDSN's Profit Margin has improved in the last couple of years.
NDSN's Operating Margin of 24.24% is amongst the best of the industry. NDSN outperforms 96.06% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
NDSN has a better Gross Margin (54.78%) than 94.49% of its industry peers.
NDSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 16.51% | ||
| GM | 54.78% |
OM growth 3Y-1.27%
OM growth 5Y2.62%
PM growth 3Y-3.34%
PM growth 5Y2.49%
GM growth 3Y-0.48%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NDSN is creating some value.
NDSN has more shares outstanding than it did 1 year ago.
NDSN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NDSN is higher compared to a year ago.
2.2 Solvency
NDSN has an Altman-Z score of 4.40. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.40, NDSN is doing good in the industry, outperforming 70.87% of the companies in the same industry.
The Debt to FCF ratio of NDSN is 4.86, which is a neutral value as it means it would take NDSN, 4.86 years of fcf income to pay off all of its debts.
NDSN's Debt to FCF ratio of 4.86 is in line compared to the rest of the industry. NDSN outperforms 54.33% of its industry peers.
NDSN has a Debt/Equity ratio of 0.72. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
NDSN has a worse Debt to Equity ratio (0.72) than 68.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.98
WACC9.62%
2.3 Liquidity
NDSN has a Current Ratio of 2.56. This indicates that NDSN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.56, NDSN is doing good in the industry, outperforming 67.72% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that NDSN should not have too much problems paying its short term obligations.
NDSN has a Quick ratio of 1.64. This is in the better half of the industry: NDSN outperforms 69.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.31%.
Measured over the past years, NDSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.66% on average per year.
The Revenue has been growing slightly by 1.98% in the past year.
Measured over the past years, NDSN shows a small growth in Revenue. The Revenue has been growing by 4.16% on average per year.
EPS 1Y (TTM)3.31%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%3.42%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%4.96%
3.2 Future
NDSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.51% yearly.
Based on estimates for the next years, NDSN will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y4.98%
EPS Next 2Y7.08%
EPS Next 3Y7.77%
EPS Next 5Y9.51%
Revenue Next Year3.98%
Revenue Next 2Y4.47%
Revenue Next 3Y5.11%
Revenue Next 5Y7.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 22.62 indicates a rather expensive valuation of NDSN.
NDSN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.41. NDSN is around the same levels.
NDSN is valuated rather expensively with a Price/Forward Earnings ratio of 19.59.
The rest of the industry has a similar Price/Forward Earnings ratio as NDSN.
When comparing the Price/Forward Earnings ratio of NDSN to the average of the S&P500 Index (35.19), we can say NDSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NDSN.
NDSN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.9 | ||
| EV/EBITDA | 18.22 |
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.
The excellent profitability rating of NDSN may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)2.12
EPS Next 2Y7.08%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.40%.
NDSN's Dividend Yield is a higher than the industry average which is at 1.82.
With a Dividend Yield of 1.40, NDSN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of NDSN is nicely growing with an annual growth rate of 14.76%!
NDSN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
38.65% of the earnings are spent on dividend by NDSN. This is a low number and sustainable payout ratio.
NDSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.65%
EPS Next 2Y7.08%
EPS Next 3Y7.77%
NASDAQ:NDSN (7/14/2025, 3:52:50 PM)
218.775
-2.04 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.28%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change-1.28%
Market Cap12.36B
Analysts75.56
Price Target253.5 (15.87%)
Short Float %3.04%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP38.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-3.19%
Max EPS beat(2)0.53%
EPS beat(4)3
Avg EPS beat(4)0.94%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)8
Avg EPS beat(12)1.18%
EPS beat(16)11
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.14%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)-0.67%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)1
Avg Revenue beat(12)-1.62%
Revenue beat(16)2
Avg Revenue beat(16)-1.52%
PT rev (1m)-0.08%
PT rev (3m)-1.7%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)2.61%
EPS NY rev (1m)1.73%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 19.59 | ||
| P/S | 4.57 | ||
| P/FCF | 26.9 | ||
| P/OCF | 22.91 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.22 |
EPS(TTM)9.67
EY4.42%
EPS(NY)11.17
Fwd EY5.11%
FCF(TTM)8.13
FCFY3.72%
OCF(TTM)9.55
OCFY4.36%
SpS47.86
BVpS52.39
TBVpS-18.86
PEG (NY)4.54
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.08% | ||
| ROCE | 11.82% | ||
| ROIC | 9.4% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 37.53% | ||
| OM | 24.24% | ||
| PM (TTM) | 16.51% | ||
| GM | 54.78% | ||
| FCFM | 16.99% |
ROA(3y)10.17%
ROA(5y)9.86%
ROE(3y)19.02%
ROE(5y)18.46%
ROIC(3y)13.32%
ROIC(5y)13.01%
ROICexc(3y)13.85%
ROICexc(5y)13.76%
ROICexgc(3y)56.67%
ROICexgc(5y)51.11%
ROCE(3y)16.75%
ROCE(5y)16.36%
ROICexcg growth 3Y-7.15%
ROICexcg growth 5Y-2.87%
ROICexc growth 3Y-14.59%
ROICexc growth 5Y-5.54%
OM growth 3Y-1.27%
OM growth 5Y2.62%
PM growth 3Y-3.34%
PM growth 5Y2.49%
GM growth 3Y-0.48%
GM growth 5Y0.34%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 55.32% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.43% | ||
| Profit Quality | 102.92% | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.4 |
F-Score5
WACC9.62%
ROIC/WACC0.98
Cap/Depr(3y)43.22%
Cap/Depr(5y)42.22%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.94%
Profit Quality(3y)106.56%
Profit Quality(5y)122.5%
High Growth Momentum
Growth
EPS 1Y (TTM)3.31%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%3.42%
EPS Next Y4.98%
EPS Next 2Y7.08%
EPS Next 3Y7.77%
EPS Next 5Y9.51%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%4.96%
Revenue Next Year3.98%
Revenue Next 2Y4.47%
Revenue Next 3Y5.11%
Revenue Next 5Y7.5%
EBIT growth 1Y-4.16%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year21.69%
EBIT Next 3Y11.64%
EBIT Next 5Y11.24%
FCF growth 1Y-15.61%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-8.01%
OCF growth 3Y0.62%
OCF growth 5Y7.75%