NORDSON CORP (NDSN)
US6556631025 - Common Stock
We assign a fundamental rating of 6 out of 10 to NDSN. 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 not valued too expensively and it also shows a decent growth rate.
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.
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
Looking at the Return On Assets, with a value of 7.79%, NDSN is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
NDSN has a Return On Equity of 15.94%. This is in the better half of the industry: NDSN outperforms 71.54% of its industry peers.
With a decent Return On Invested Capital value of 9.79%, NDSN is doing good in the industry, outperforming 68.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NDSN is above the industry average of 10.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 15.94% | ||
| ROIC | 9.79% |
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
NDSN's Profit Margin of 17.37% is amongst the best of the industry. NDSN outperforms 93.85% of its industry peers.
In the last couple of years the Profit Margin of NDSN has grown nicely.
NDSN has a Operating Margin of 25.06%. This is amongst the best in the industry. NDSN outperforms 96.92% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
NDSN has a better Gross Margin (55.25%) than 96.15% of its industry peers.
NDSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.06% | ||
| PM (TTM) | 17.37% | ||
| GM | 55.25% |
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.
Compared to 1 year ago, NDSN has more shares outstanding
The number of shares outstanding for NDSN has been reduced compared to 5 years ago.
NDSN has a worse debt/assets ratio than last year.
2.2 Solvency
NDSN has a debt to FCF ratio of 4.48. This is a neutral value as NDSN would need 4.48 years to pay back of all of its debts.
NDSN's Debt to FCF ratio of 4.48 is in line compared to the rest of the industry. NDSN outperforms 57.69% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that NDSN is somewhat dependend on debt financing.
NDSN has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: NDSN underperforms 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | N/A |
ROIC/WACC1.11
WACC8.83%
2.3 Liquidity
NDSN has a Current Ratio of 2.41. This indicates that NDSN is financially healthy and has no problem in meeting its short term obligations.
NDSN has a better Current ratio (2.41) than 64.62% of its industry peers.
NDSN has a Quick Ratio of 1.51. This is a normal value and indicates that NDSN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.51, NDSN is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.98% over the past year.
The Earnings Per Share has been growing by 10.66% on average over the past years. This is quite good.
Looking at the last year, NDSN shows a small growth in Revenue. The Revenue has grown by 2.33% in the last year.
NDSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.16% yearly.
EPS 1Y (TTM)7.98%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%13.01%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%3.5%
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 12.14% yearly.
The Revenue is expected to grow by 9.12% on average over the next years. This is quite good.
EPS Next Y6.52%
EPS Next 2Y8.56%
EPS Next 3Y7.84%
EPS Next 5Y12.14%
Revenue Next Year6.43%
Revenue Next 2Y5.32%
Revenue Next 3Y5.64%
Revenue Next 5Y9.12%
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 22.95 indicates a rather expensive valuation of NDSN.
The rest of the industry has a similar Price/Earnings ratio as NDSN.
The average S&P500 Price/Earnings ratio is at 28.77. NDSN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 21.54 indicates a rather expensive valuation of NDSN.
The rest of the industry has a similar Price/Forward Earnings ratio as NDSN.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
NDSN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NDSN indicates a somewhat cheap valuation: NDSN is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.99 | ||
| EV/EBITDA | 18.39 |
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)3.52
PEG (5Y)2.15
EPS Next 2Y8.56%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 1.61, NDSN pays a bit more dividend than its industry peers.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of NDSN is nicely growing with an annual growth rate of 14.76%!
NDSN has been paying a dividend for at least 10 years, so it has a reliable track record.
NDSN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.76%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
34.55% 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.
DP34.55%
EPS Next 2Y8.56%
EPS Next 3Y7.84%
NORDSON CORP
NASDAQ:NDSN (12/18/2024, 10:02:41 AM)
223.5
-0.51 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.78B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 21.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.52
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 15.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.06% | ||
| PM (TTM) | 17.37% | ||
| GM | 55.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.98%
EPS 3Y7.96%
EPS 5Y
EPS Q2Q%
EPS Next Y6.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.33%
Revenue growth 3Y4.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y