NORDSON CORP (NDSN) Stock Fundamental Analysis
USA - NASDAQ:NDSN - US6556631025 - Common Stock
230.32 USD
+0.66 (+0.29%)
230.32 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. While showing a medium growth rate, NDSN is valued expensive at the moment.
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.
In the past 5 years NDSN has always been profitable.
In the past 5 years NDSN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.57%, NDSN is doing good in the industry, outperforming 70.00% of the companies in the same industry.
NDSN has a better Return On Equity (15.26%) than 75.38% of its industry peers.
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 10.24%.
| 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 Profit Margin of 16.34%. This is amongst the best in the industry. NDSN outperforms 91.54% 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.
NDSN's Operating Margin has improved in the last couple of years.
NDSN has a Gross Margin of 54.56%. This is amongst the best in the industry. NDSN outperforms 95.38% of its industry peers.
NDSN's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, NDSN has a worse debt to assets ratio.
2.2 Solvency
NDSN has an Altman-Z score of 4.55. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NDSN (4.55) is better than 71.54% 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.
With a Debt to FCF ratio value of 4.30, NDSN perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that NDSN is somewhat dependend on debt financing.
NDSN has a worse Debt to Equity ratio (0.60) than 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.12
WACC9.34%
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.
NDSN has a Current ratio of 1.69. This is in the lower half of the industry: NDSN underperforms 63.08% 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
The Earnings Per Share has been growing slightly by 6.05% 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 4.49% in the past 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.
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 Y6.13%
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.
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 23.06 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.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.38, which indicates a rather expensive current valuation of NDSN.
The rest of the industry has a similar Price/Forward Earnings ratio as NDSN.
NDSN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 20.38 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as NDSN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.07 | ||
| EV/EBITDA | 17.78 |
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)3.76
PEG (5Y)2.16
EPS Next 2Y7.73%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, NDSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.82, NDSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, NDSN's dividend is way lower than the S&P500 average.
| 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 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.
NDSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.04%
EPS Next 2Y7.73%
EPS Next 3Y8.12%
230.32
+0.66 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change-1.08%
Ins Owners0.28%
Ins Owner Change-0.66%
Market Cap12.94B
Revenue(TTM)2.78B
Net Income(TTM)455.01M
Analysts75.56
Price Target262.57 (14%)
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 | 23.06 | ||
| Fwd PE | 20.38 | ||
| P/S | 4.65 | ||
| P/FCF | 26.07 | ||
| P/OCF | 22.86 | ||
| P/B | 4.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.78 |
EPS(TTM)9.99
EY4.34%
EPS(NY)11.3
Fwd EY4.91%
FCF(TTM)8.83
FCFY3.84%
OCF(TTM)10.07
OCFY4.37%
SpS49.55
BVpS53.07
TBVpS-18.2
PEG (NY)3.76
PEG (5Y)2.16
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 | 4.55 |
F-Score4
WACC9.34%
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%.