NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - Nasdaq - US6556631025 - Common Stock - Currency: USD
Overall NDSN gets a fundamental rating of 6 out of 10. We evaluated NDSN against 128 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.
In the past 5 years NDSN always reported a positive cash flow from operatings.
1.2 Ratios
NDSN has a Return On Assets of 7.79%. This is in the better half of the industry: NDSN outperforms 72.00% of its industry peers.
NDSN has a better Return On Equity (15.94%) than 69.60% of its industry peers.
With a decent Return On Invested Capital value of 9.79%, NDSN is doing good in the industry, outperforming 68.80% 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 11.00%.
| 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 93.60% of the companies in the same industry.
In the last couple of years the Profit Margin of NDSN has grown nicely.
With an excellent Operating Margin value of 25.06%, NDSN belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
NDSN's Operating Margin has improved in the last couple of years.
NDSN's Gross Margin of 55.25% is amongst the best of the industry. NDSN outperforms 96.00% 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 | 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.
The number of shares outstanding for NDSN has been increased compared to 1 year ago.
Compared to 5 years ago, NDSN has less shares outstanding
NDSN has a worse debt/assets ratio than last year.
2.2 Solvency
NDSN has an Altman-Z score of 4.41. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
NDSN has a better Altman-Z score (4.41) than 71.20% of its industry peers.
NDSN has a debt to FCF ratio of 4.52. This is a neutral value as NDSN would need 4.52 years to pay back of all of its debts.
NDSN has a Debt to FCF ratio (4.52) which is in line with its industry peers.
A Debt/Equity ratio of 0.72 indicates that 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: 74.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.95
WACC10.36%
2.3 Liquidity
A Current Ratio of 2.41 indicates that NDSN has no problem at all paying its short term obligations.
NDSN has a Current ratio of 2.41. This is in the better half of the industry: NDSN outperforms 64.00% 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.
NDSN's Quick ratio of 1.51 is fine compared to the rest of the industry. NDSN outperforms 62.40% of its industry peers.
| 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 3.34% over the past year.
NDSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.66% yearly.
The Revenue has been growing slightly by 2.33% in the past year.
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)3.34%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%-6.79%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%-2.81%
3.2 Future
The Earnings Per Share is expected to grow by 9.97% on average over the next years. This is quite good.
Based on estimates for the next years, NDSN will show a small growth in Revenue. The Revenue will grow by 7.98% on average per year.
EPS Next Y4.7%
EPS Next 2Y6.95%
EPS Next 3Y7.84%
EPS Next 5Y9.97%
Revenue Next Year4.71%
Revenue Next 2Y4.69%
Revenue Next 3Y5.48%
Revenue Next 5Y7.98%
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
A Price/Earnings ratio of 22.47 indicates a rather expensive valuation of NDSN.
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 29.63. NDSN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.34, the valuation of NDSN can be described as rather expensive.
NDSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NDSN is cheaper than 62.40% of the companies in the same industry.
NDSN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
NDSN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NDSN is valued a bit cheaper than 60.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.01 | ||
| EV/EBITDA | 17.99 |
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)4.78
PEG (5Y)2.11
EPS Next 2Y6.95%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.43%.
NDSN's Dividend Yield is a higher than the industry average which is at 1.67.
Compared to the average S&P500 Dividend Yield of 2.29, NDSN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of NDSN grows each year by 14.76%, which is quite nice.
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 2Y6.95%
EPS Next 3Y7.84%
215.44
-3.01 (-1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.71%
Inst Owner Change0.41%
Ins Owners5.1%
Ins Owner Change1.22%
Market Cap12.30B
Analysts75
Price Target262.37 (21.78%)
Short Float %2.3%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)-1.98%
PT rev (3m)-9.11%
EPS NQ rev (1m)-9.13%
EPS NQ rev (3m)-13.11%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)-6.23%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-4.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 19.34 | ||
| P/S | 4.57 | ||
| P/FCF | 25.01 | ||
| P/OCF | 22.11 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)9.59
EY4.45%
EPS(NY)11.14
Fwd EY5.17%
FCF(TTM)8.61
FCFY4%
OCF(TTM)9.74
OCFY4.52%
SpS47.12
BVpS51.36
TBVpS-19.08
PEG (NY)4.78
PEG (5Y)2.11
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 | 4.41 |
F-Score6
WACC10.36%
ROIC/WACC0.95
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)3.34%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%-6.79%
EPS Next Y4.7%
EPS Next 2Y6.95%
EPS Next 3Y7.84%
EPS Next 5Y9.97%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%-2.81%
Revenue Next Year4.71%
Revenue Next 2Y4.69%
Revenue Next 3Y5.48%
Revenue Next 5Y7.98%
EBIT growth 1Y0.19%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year24.14%
EBIT Next 3Y12.56%
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%