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 has an excellent profitability rating, 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
In the past year NDSN was profitable.
NDSN had a positive operating cash flow in the past year.
Each year in the past 5 years NDSN has been profitable.
Each year in the past 5 years NDSN had a positive operating cash flow.
1.2 Ratios
NDSN's Return On Assets of 7.70% is fine compared to the rest of the industry. NDSN outperforms 69.53% of its industry peers.
Looking at the Return On Equity, with a value of 15.73%, NDSN is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
NDSN has a Return On Invested Capital of 9.68%. This is in the better half of the industry: NDSN outperforms 64.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NDSN is above the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 15.73% | ||
| ROIC | 9.68% |
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
With an excellent Profit Margin value of 16.93%, NDSN belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
NDSN's Profit Margin has improved in the last couple of years.
NDSN's Operating Margin of 24.53% is amongst the best of the industry. NDSN outperforms 96.09% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
Looking at the Gross Margin, with a value of 55.15%, NDSN belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
NDSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.53% | ||
| PM (TTM) | 16.93% | ||
| GM | 55.15% |
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.
The number of shares outstanding for NDSN has been reduced compared to 5 years ago.
The debt/assets ratio for NDSN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.12 indicates that NDSN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.12, NDSN is doing good in the industry, outperforming 70.31% of the companies in the same industry.
The Debt to FCF ratio of NDSN is 4.74, which is a neutral value as it means it would take NDSN, 4.74 years of fcf income to pay off all of its debts.
NDSN has a Debt to FCF ratio (4.74) which is in line with its industry peers.
NDSN has a Debt/Equity ratio of 0.73. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, NDSN is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 4.12 |
ROIC/WACC1
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.53 indicates that NDSN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.53, NDSN is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
A Quick Ratio of 1.56 indicates that NDSN should not have too much problems paying its short term obligations.
The Quick ratio of NDSN (1.56) is better than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.34%.
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.
NDSN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.78%.
NDSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.16% yearly.
EPS 1Y (TTM)3.34%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%-6.79%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%-2.81%
3.2 Future
The Earnings Per Share is expected to grow by 9.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y3.19%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
EPS Next 5Y9.44%
Revenue Next Year3.22%
Revenue Next 2Y4.05%
Revenue Next 3Y4.92%
Revenue Next 5Y7.54%
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
With a Price/Earnings ratio of 19.75, NDSN is valued on the expensive side.
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 (28.92), we can say NDSN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.57, 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 62.50% of the companies in the same industry.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NDSN.
The rest of the industry has a similar Price/Free Cash Flow ratio as NDSN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.2 | ||
| EV/EBITDA | 15.83 |
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)6.18
PEG (5Y)1.85
EPS Next 2Y5.21%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.73%.
Compared to an average industry Dividend Yield of 2.12, NDSN pays a bit more dividend than its industry peers.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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
36.96% 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.
DP36.96%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
189.45
+4.72 (+2.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.65%
Inst Owner Change0.54%
Ins Owners0.27%
Ins Owner Change1.58%
Market Cap10.78B
Analysts75
Price Target257.88 (36.12%)
Short Float %2.54%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP36.96%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-3.19%
Max EPS beat(2)5.19%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)5
Avg EPS beat(8)1.73%
EPS beat(12)8
Avg EPS beat(12)1.48%
EPS beat(16)11
Avg EPS beat(16)3.29%
Revenue beat(2)0
Avg Revenue beat(2)-3.25%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.84%
Revenue beat(16)3
Avg Revenue beat(16)-1.14%
PT rev (1m)0.41%
PT rev (3m)-3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.56%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.57 | ||
| P/S | 4.03 | ||
| P/FCF | 23.2 | ||
| P/OCF | 19.86 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)9.59
EY5.06%
EPS(NY)10.78
Fwd EY5.69%
FCF(TTM)8.17
FCFY4.31%
OCF(TTM)9.54
OCFY5.04%
SpS46.95
BVpS50.55
TBVpS-18.81
PEG (NY)6.18
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 15.73% | ||
| ROCE | 12.17% | ||
| ROIC | 9.68% | ||
| ROICexc | 9.92% | ||
| ROICexgc | 39.78% | ||
| OM | 24.53% | ||
| PM (TTM) | 16.93% | ||
| GM | 55.15% | ||
| FCFM | 17.39% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.74 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 56.05% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.28% | ||
| Profit Quality | 102.72% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 4.12 |
F-Score6
WACC9.72%
ROIC/WACC1
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 Y3.19%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
EPS Next 5Y9.44%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%-2.81%
Revenue Next Year3.22%
Revenue Next 2Y4.05%
Revenue Next 3Y4.92%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.72%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year22.39%
EBIT Next 3Y12.12%
EBIT Next 5Y11.37%
FCF growth 1Y-1.15%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y4.76%
OCF growth 3Y0.62%
OCF growth 5Y7.75%