NORDSON CORP (NDSN) Stock Fundamental Analysis
USA - NASDAQ:NDSN - US6556631025 - Common Stock
236.41 USD
+1.64 (+0.7%)
236.41 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. 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
NDSN had positive earnings in the past year.
NDSN had a positive operating cash flow in the past year.
NDSN had positive earnings in each of the past 5 years.
In the past 5 years NDSN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.57%, NDSN is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.26%, NDSN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.48%, NDSN is doing good in the industry, outperforming 74.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NDSN is above the industry average of 10.27%.
| 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
NDSN has a better Profit Margin (16.34%) than 92.31% of its industry peers.
NDSN's Profit Margin has improved in the last couple of years.
NDSN has a Operating Margin of 24.73%. 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 Gross Margin of 54.56%. This is amongst the best in the industry. NDSN outperforms 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
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.
Compared to 1 year ago, NDSN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.61 indicates that NDSN is not in any danger for bankruptcy at the moment.
NDSN's Altman-Z score of 4.61 is fine compared to the rest of the industry. NDSN outperforms 73.85% 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.
The Debt to FCF ratio of NDSN (4.30) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.60 indicates that NDSN is somewhat dependend on debt financing.
NDSN has a Debt to Equity ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.12
WACC9.32%
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 63.85% of its industry peers.
NDSN has a Quick Ratio of 1.11. 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 1.11, NDSN is in line with its industry, outperforming 42.31% 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%.
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.
Looking at the last year, NDSN shows a small growth in Revenue. The Revenue has grown by 4.49% 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)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
NDSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.47% yearly.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y6.13%
EPS Next 2Y7.73%
EPS Next 3Y8.12%
EPS Next 5Y9.47%
Revenue Next Year4.38%
Revenue Next 2Y4.41%
Revenue Next 3Y4.94%
Revenue Next 5Y7.78%
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.
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
Based on the Price/Earnings ratio of 23.66, the valuation of NDSN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as NDSN.
The average S&P500 Price/Earnings ratio is at 26.35. NDSN is around the same levels.
A Price/Forward Earnings ratio of 20.92 indicates a rather expensive valuation of NDSN.
NDSN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NDSN to the average of the S&P500 Index (33.72), we can say NDSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.92 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.76 | ||
| EV/EBITDA | 18.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NDSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.86
PEG (5Y)2.22
EPS Next 2Y7.73%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.85, NDSN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, NDSN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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.
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 2Y7.73%
EPS Next 3Y8.12%
236.41
+1.64 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change-0.88%
Ins Owners0.28%
Ins Owner Change0.2%
Market Cap13.28B
Revenue(TTM)2.78B
Net Income(TTM)455.01M
Analysts75.56
Price Target262.57 (11.07%)
Short Float %2.41%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)0.39%
PT rev (3m)2.75%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.92 | ||
| P/S | 4.77 | ||
| P/FCF | 26.76 | ||
| P/OCF | 23.47 | ||
| P/B | 4.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.12 |
EPS(TTM)9.99
EY4.23%
EPS(NY)11.3
Fwd EY4.78%
FCF(TTM)8.83
FCFY3.74%
OCF(TTM)10.07
OCFY4.26%
SpS49.55
BVpS53.07
TBVpS-18.2
PEG (NY)3.86
PEG (5Y)2.22
Graham Number109.22
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%
ROICexgc growth 3Y-7.15%
ROICexgc 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 | 4.61 |
F-Score4
WACC9.32%
ROIC/WACC1.12
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 Y6.13%
EPS Next 2Y7.73%
EPS Next 3Y8.12%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
Revenue Next Year4.38%
Revenue Next 2Y4.41%
Revenue Next 3Y4.94%
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%
NORDSON CORP / NDSN FAQ
Can you provide the ChartMill fundamental rating for NORDSON CORP?
ChartMill assigns a fundamental rating of 5 / 10 to NDSN.
What is the valuation status of NORDSON CORP (NDSN) stock?
ChartMill assigns a valuation rating of 3 / 10 to NORDSON CORP (NDSN). This can be considered as Overvalued.
What is the profitability of NDSN stock?
NORDSON CORP (NDSN) has a profitability rating of 8 / 10.
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 6.13% in the next year.
Can you provide the dividend sustainability for NDSN stock?
The dividend rating of NORDSON CORP (NDSN) is 5 / 10 and the dividend payout ratio is 39.04%.