NORDSON CORP (NDSN) Stock Fundamental Analysis
USA - NASDAQ:NDSN - US6556631025 - Common Stock
227.63 USD
+3.99 (+1.78%)
227.63 USD
0 (0%)
Overall NDSN gets a fundamental rating of 5 out of 10. We evaluated NDSN against 128 industry peers in the Machinery industry. While NDSN has a great profitability rating, there are quite some concerns on its financial health. NDSN is quite expensive at the moment. It does show 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.
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
The Return On Assets of NDSN (7.57%) is better than 70.31% of its industry peers.
NDSN has a Return On Equity of 15.26%. This is in the better half of the industry: NDSN outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.48%, NDSN is in the better half of the industry, outperforming 74.22% 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 10.02%.
| 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
With an excellent Profit Margin value of 16.34%, NDSN belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
NDSN's Profit Margin has improved in the last couple of years.
The Operating Margin of NDSN (24.73%) is better than 96.88% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
NDSN has a better Gross Margin (54.56%) than 95.31% 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
NDSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
The debt/assets ratio for NDSN is higher compared to a year ago.
2.2 Solvency
NDSN has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as NDSN would need 3.91 years to pay back of all of its debts.
NDSN has a Debt to FCF ratio (3.91) which is comparable to the rest of the industry.
NDSN has a Debt/Equity ratio of 0.60. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, NDSN is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.69 indicates that NDSN should not have too much problems paying its short term obligations.
The Current ratio of NDSN (1.69) is worse than 61.72% 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.
With a Quick ratio value of 1.11, NDSN perfoms like the industry average, outperforming 43.75% 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%.
The Earnings Per Share has been growing by 10.66% on average over the past years. This is quite good.
NDSN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.49%.
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
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y5.17%
EPS Next 2Y7.22%
EPS Next 3Y7.77%
EPS Next 5Y9.47%
Revenue Next Year4.49%
Revenue Next 2Y4.5%
Revenue Next 3Y4.97%
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
With a Price/Earnings ratio of 22.79, NDSN is valued on the expensive side.
Based on the Price/Earnings ratio, NDSN is valued a bit cheaper than 60.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. NDSN is around the same levels.
With a Price/Forward Earnings ratio of 20.33, NDSN is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as NDSN.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
NDSN's Enterprise Value to EBITDA ratio is in line with the industry average.
NDSN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.55 | ||
| EV/EBITDA | 17.36 |
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)4.41
PEG (5Y)2.14
EPS Next 2Y7.22%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, NDSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.74, NDSN pays a bit more dividend than its industry peers.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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 2Y7.22%
EPS Next 3Y7.77%
227.63
+3.99 (+1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.53%
Inst Owner Change0.87%
Ins Owners0.27%
Ins Owner Change-0.1%
Market Cap12.79B
Analysts75.56
Price Target261.55 (14.9%)
Short Float %2.49%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)1.82%
PT rev (3m)3.09%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 20.33 | ||
| P/S | 4.59 | ||
| P/FCF | 23.55 | ||
| P/OCF | 20.88 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.36 |
EPS(TTM)9.99
EY4.39%
EPS(NY)11.2
Fwd EY4.92%
FCF(TTM)9.66
FCFY4.25%
OCF(TTM)10.9
OCFY4.79%
SpS49.55
BVpS53.07
TBVpS-5.78
PEG (NY)4.41
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 15.26% | ||
| ROCE | 13.17% | ||
| ROIC | 10.48% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 30.89% | ||
| OM | 24.73% | ||
| PM (TTM) | 16.34% | ||
| GM | 54.56% | ||
| FCFM | 19.5% |
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 46.73% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.15% | ||
| Profit Quality | 119.34% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score4
WACC9.69%
ROIC/WACC1.08
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 Y5.17%
EPS Next 2Y7.22%
EPS Next 3Y7.77%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
Revenue Next Year4.49%
Revenue Next 2Y4.5%
Revenue Next 3Y4.97%
Revenue Next 5Y7.78%
EBIT growth 1Y1.24%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year23.91%
EBIT Next 3Y12.27%
EBIT Next 5Y11.42%
FCF growth 1Y-11.75%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-5.96%
OCF growth 3Y0.62%
OCF growth 5Y7.75%