NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - Nasdaq - US6556631025 - Common Stock
We assign a fundamental rating of 6 out of 10 to NDSN. NDSN was compared to 131 industry peers in the Machinery industry. While NDSN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NDSN has a decent growth rate and is not valued too expensively.
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.
In the past 5 years NDSN has always 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 7.79%, NDSN is in the better half of the industry, outperforming 72.44% of the companies in the same industry.
NDSN has a better Return On Equity (15.94%) than 70.87% of its industry peers.
NDSN's Return On Invested Capital of 9.79% is fine compared to the rest of the industry. NDSN outperforms 67.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NDSN is above the industry average of 11.19%.
| 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
Looking at the Profit Margin, with a value of 17.37%, NDSN belongs to the top of the industry, outperforming 93.70% of the companies in the same industry.
NDSN's Profit Margin has improved in the last couple of years.
NDSN has a Operating Margin of 25.06%. This is amongst the best in the industry. NDSN outperforms 96.85% 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 96.06% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NDSN is still creating some value.
Compared to 1 year ago, NDSN has more shares outstanding
NDSN has less shares outstanding than it did 5 years ago.
NDSN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.42 indicates that NDSN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.42, NDSN is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
The Debt to FCF ratio of NDSN is 4.52, which is a neutral value as it means it would take NDSN, 4.52 years of fcf income to pay off all of its debts.
NDSN has a Debt to FCF ratio (4.52) which is in line with 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.
With a Debt to Equity ratio value of 0.72, NDSN is not doing good in the industry: 74.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.05
WACC9.36%
2.3 Liquidity
A Current Ratio of 2.41 indicates that NDSN has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.41, NDSN is doing good in the industry, outperforming 65.35% of the companies in the same industry.
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.
NDSN has a better Quick ratio (1.51) than 66.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.98%.
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 2.33% 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)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
The Earnings Per Share is expected to grow by 9.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.98% on average over the next years.
EPS Next Y6.52%
EPS Next 2Y8.56%
EPS Next 3Y7.84%
EPS Next 5Y9.97%
Revenue Next Year5.33%
Revenue Next 2Y5.03%
Revenue Next 3Y5.47%
Revenue Next 5Y7.98%
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
The Price/Earnings ratio is 22.61, which indicates a rather expensive current valuation of NDSN.
NDSN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NDSN to the average of the S&P500 Index (28.29), we can say NDSN is valued slightly cheaper.
The Price/Forward Earnings ratio is 21.22, which indicates a rather expensive current 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 (24.44), we can say NDSN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 21.22 |
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 ratio is a bit cheaper when compared to the industry. NDSN is cheaper than 61.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.53 | ||
| EV/EBITDA | 18.1 |
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)3.47
PEG (5Y)2.12
EPS Next 2Y8.56%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
NDSN's Dividend Yield is a higher than the industry average which is at 1.65.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 (1/21/2025, 8:16:39 PM)
After market: 220.18 0 (0%)220.18
+3.8 (+1.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.71%
Inst Owner Change-0.29%
Ins Owners5.1%
Ins Owner Change1.21%
Market Cap12.55B
Analysts73.75
Price Target267.67 (21.57%)
Short Float %2.2%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP34.55%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.21%
Min EPS beat(2)1.23%
Max EPS beat(2)5.19%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-0.89%
Max EPS beat(4)6.37%
EPS beat(8)5
Avg EPS beat(8)1.75%
EPS beat(12)9
Avg EPS beat(12)2.28%
EPS beat(16)12
Avg EPS beat(16)4.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-3.56%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-2.01%
Revenue beat(12)1
Avg Revenue beat(12)-1.51%
Revenue beat(16)4
Avg Revenue beat(16)-0.71%
PT rev (1m)-7.27%
PT rev (3m)-6.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.61 | ||
| Fwd PE | 21.22 | ||
| P/S | 4.67 | ||
| P/FCF | 25.53 | ||
| P/OCF | 22.57 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.1 |
EPS(TTM)9.74
EY4.42%
EPS(NY)10.38
Fwd EY4.71%
FCF(TTM)8.62
FCFY3.92%
OCF(TTM)9.75
OCFY4.43%
SpS47.18
BVpS51.42
TBVpS-19.11
PEG (NY)3.47
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 15.94% | ||
| ROCE | 12.32% | ||
| ROIC | 9.79% | ||
| ROICexc | 10.01% | ||
| ROICexgc | 40.15% | ||
| OM | 25.06% | ||
| PM (TTM) | 17.37% | ||
| GM | 55.25% | ||
| FCFM | 18.28% |
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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.52 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 47.3% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 7.84 | ||
| Cash Conversion | 68.65% | ||
| Profit Quality | 105.24% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 4.42 |
F-Score6
WACC9.36%
ROIC/WACC1.05
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)7.98%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%13.01%
EPS Next Y6.52%
EPS Next 2Y8.56%
EPS Next 3Y7.84%
EPS Next 5Y9.97%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%3.5%
Revenue Next Year5.33%
Revenue Next 2Y5.03%
Revenue Next 3Y5.47%
Revenue Next 5Y7.98%
EBIT growth 1Y0.19%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year25.5%
EBIT Next 3Y12.59%
EBIT Next 5Y11.88%
FCF growth 1Y-18.94%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-13.27%
OCF growth 3Y0.62%
OCF growth 5Y7.75%