NORDSON CORP (NDSN) Stock Fundamental Analysis
USA - NASDAQ:NDSN - US6556631025 - Common Stock
235.66 USD
+2.32 (+0.99%)
235.66 USD
0 (0%)
Taking everything into account, NDSN scores 5 out of 10 in our fundamental rating. NDSN was compared to 130 industry peers in the Machinery industry. While NDSN has a great profitability rating, 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.
NDSN had positive earnings in each of the past 5 years.
NDSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NDSN has a better Return On Assets (7.57%) than 71.54% of its industry peers.
With a decent Return On Equity value of 15.26%, NDSN is doing good in the industry, outperforming 76.15% of the companies in the same industry.
NDSN has a Return On Invested Capital of 10.48%. This is in the better half of the industry: NDSN outperforms 74.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NDSN is above the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 15.26% | ||
| ROIC | 10.48% |
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
The Profit Margin of NDSN (16.34%) is better than 91.54% of its industry peers.
NDSN's Profit Margin has improved in the last couple of years.
NDSN's Operating Margin of 24.73% is amongst the best of the industry. NDSN outperforms 96.92% of its industry peers.
NDSN's Operating Margin has improved in the last couple of years.
The Gross Margin of NDSN (54.56%) is better than 95.38% 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 | 24.73% | ||
| PM (TTM) | 16.34% | ||
| GM | 54.56% |
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
NDSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 4.62. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NDSN (4.62) is better than 73.08% of its industry peers.
The Debt to FCF ratio of NDSN is 4.30, which is a neutral value as it means it would take NDSN, 4.30 years of fcf income to pay off all of its debts.
NDSN has a Debt to FCF ratio (4.30) which is comparable to the rest of the industry.
NDSN has a Debt/Equity ratio of 0.60. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
The Debt to Equity ratio of NDSN (0.60) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.14
WACC9.2%
2.3 Liquidity
NDSN has a Current Ratio of 1.69. This is a normal value and indicates that NDSN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NDSN (1.69) is worse than 62.31% of its industry peers.
A Quick Ratio of 1.11 indicates that NDSN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, NDSN is in line with its industry, outperforming 43.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.05%.
The Earnings Per Share has been growing by 10.66% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.49% in the past year.
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)6.05%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%13.28%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
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 9.47% on average per year.
Based on estimates for the next years, NDSN will show a small growth in Revenue. The Revenue will grow by 7.78% on average per year.
EPS Next Y6.17%
EPS Next 2Y7.64%
EPS Next 3Y7.92%
EPS Next 5Y9.47%
Revenue Next Year4.49%
Revenue Next 2Y4.54%
Revenue Next 3Y5%
Revenue Next 5Y7.78%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NDSN is valuated rather expensively with a Price/Earnings ratio of 23.59.
Compared to the rest of the industry, the Price/Earnings ratio of NDSN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.69. NDSN is around the same levels.
Based on the Price/Forward Earnings ratio of 20.88, the valuation of NDSN can be described as rather expensive.
NDSN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NDSN to the average of the S&P500 Index (23.18), we can say NDSN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 20.88 |
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.
NDSN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.67 | ||
| EV/EBITDA | 18.18 |
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)3.82
PEG (5Y)2.21
EPS Next 2Y7.64%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, NDSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.80, NDSN pays a bit more dividend than its industry peers.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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
NDSN pays out 39.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of NDSN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.04%
EPS Next 2Y7.64%
EPS Next 3Y7.92%
235.66
+2.32 (+0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change0.03%
Ins Owners0.28%
Ins Owner Change-0.09%
Market Cap13.24B
Analysts75.56
Price Target261.55 (10.99%)
Short Float %2.66%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP39.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.01%
Min EPS beat(2)0.53%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)1.01%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.43%
EPS beat(12)8
Avg EPS beat(12)1.3%
EPS beat(16)11
Avg EPS beat(16)0.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)0.54%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.55%
Revenue beat(16)2
Avg Revenue beat(16)-1.79%
PT rev (1m)0%
PT rev (3m)3.17%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0.95%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 20.88 | ||
| P/S | 4.76 | ||
| P/FCF | 26.67 | ||
| P/OCF | 23.39 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.18 |
EPS(TTM)9.99
EY4.24%
EPS(NY)11.29
Fwd EY4.79%
FCF(TTM)8.83
FCFY3.75%
OCF(TTM)10.07
OCFY4.27%
SpS49.55
BVpS53.07
TBVpS-18.2
PEG (NY)3.82
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 15.26% | ||
| ROCE | 13.17% | ||
| ROIC | 10.48% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 50.96% | ||
| OM | 24.73% | ||
| PM (TTM) | 16.34% | ||
| GM | 54.56% | ||
| FCFM | 17.83% |
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 46.73% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.58% | ||
| Profit Quality | 109.1% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.62 |
F-Score4
WACC9.2%
ROIC/WACC1.14
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)6.05%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%13.28%
EPS Next Y6.17%
EPS Next 2Y7.64%
EPS Next 3Y7.92%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
Revenue Next Year4.49%
Revenue Next 2Y4.54%
Revenue Next 3Y5%
Revenue Next 5Y7.78%
EBIT growth 1Y1.24%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year25.98%
EBIT Next 3Y12.27%
EBIT Next 5Y11.42%
FCF growth 1Y-19.32%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-13.12%
OCF growth 3Y0.62%
OCF growth 5Y7.75%