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NDSN

Nordson NasdaqGS:NDSN Stock Report

Last Price

US$230.23

Market Cap

US$13.2b

7D

1.2%

1Y

3.9%

Updated

09 Aug, 2022

Data

Company Financials +
NDSN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends4/6

NDSN Stock Overview

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide.

Nordson Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nordson
Historical stock prices
Current Share PriceUS$230.23
52 Week HighUS$272.28
52 Week LowUS$194.89
Beta0.97
1 Month Change10.99%
3 Month Change10.73%
1 Year Change3.88%
3 Year Change65.78%
5 Year Change79.15%
Change since IPO1,779.43%

Recent News & Updates

Shareholder Returns

NDSNUS MachineryUS Market
7D1.2%0.4%1.1%
1Y3.9%-12.7%-13.0%

Return vs Industry: NDSN exceeded the US Machinery industry which returned -12.7% over the past year.

Return vs Market: NDSN exceeded the US Market which returned -13% over the past year.

Price Volatility

Is NDSN's price volatile compared to industry and market?
NDSN volatility
NDSN Average Weekly Movement3.6%
Machinery Industry Average Movement6.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: NDSN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NDSN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19357,200Naga Nagarajanhttps://www.nordson.com

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products.

Nordson Fundamentals Summary

How do Nordson's earnings and revenue compare to its market cap?
NDSN fundamental statistics
Market CapUS$13.24b
Earnings (TTM)US$482.69m
Revenue (TTM)US$2.49b

27.4x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NDSN income statement (TTM)
RevenueUS$2.49b
Cost of RevenueUS$1.10b
Gross ProfitUS$1.39b
Other ExpensesUS$911.51m
EarningsUS$482.69m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Aug 22, 2022

Earnings per share (EPS)8.39
Gross Margin55.98%
Net Profit Margin19.38%
Debt/Equity Ratio36.1%

How did NDSN perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

23%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NDSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NDSN?

Other financial metrics that can be useful for relative valuation.

NDSN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.6x
Enterprise Value/EBITDA18x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does NDSN's PE Ratio compare to its peers?

NDSN PE Ratio vs Peers
The above table shows the PE ratio for NDSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.1x
SWK Stanley Black & Decker
14.4x29.9%US$13.6b
SNA Snap-on
13.6x-0.9%US$11.8b
IEX IDEX
30.8x7.6%US$15.8b
GGG Graco
25.6x7.8%US$11.3b
NDSN Nordson
27.4x10.6%US$13.2b

Price-To-Earnings vs Peers: NDSN is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does NDSN's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: NDSN is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the US Machinery industry average (22.6x)


Price to Earnings Ratio vs Fair Ratio

What is NDSN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NDSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: NDSN is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).


Share Price vs Fair Value

What is the Fair Price of NDSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NDSN ($230.23) is trading below our estimate of fair value ($366.14)

Significantly Below Fair Value: NDSN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Nordson forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDSN's forecast earnings growth (10.6% per year) is above the savings rate (1.9%).

Earnings vs Market: NDSN's earnings (10.6% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: NDSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: NDSN's revenue (8% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: NDSN's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NDSN's Return on Equity is forecast to be high in 3 years time (21.6%)


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Past Performance

How has Nordson performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NDSN has high quality earnings.

Growing Profit Margin: NDSN's current net profit margins (19.4%) are higher than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: NDSN's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: NDSN's earnings growth over the past year (57.1%) exceeds its 5-year average (5.9% per year).

Earnings vs Industry: NDSN earnings growth over the past year (57.1%) exceeded the Machinery industry 9.3%.


Return on Equity

High ROE: NDSN's Return on Equity (22%) is considered high.


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Financial Health

How is Nordson's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NDSN's short term assets ($1.1B) exceed its short term liabilities ($722.5M).

Long Term Liabilities: NDSN's short term assets ($1.1B) exceed its long term liabilities ($883.2M).


Debt to Equity History and Analysis

Debt Level: NDSN's net debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: NDSN's debt to equity ratio has reduced from 177% to 36.1% over the past 5 years.

Debt Coverage: NDSN's debt is well covered by operating cash flow (64.9%).

Interest Coverage: NDSN's interest payments on its debt are well covered by EBIT (33.6x coverage).


Balance Sheet


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Dividend

What is Nordson current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NDSN's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: NDSN's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

Stable Dividend: NDSN's dividends per share have been stable in the past 10 years.

Growing Dividend: NDSN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.1%), NDSN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25%), NDSN's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Naga Nagarajan (59 yo)

3yrs

Tenure

US$10,308,750

Compensation

Mr. Sundaram Nagarajan, also known as Naga, has been the President, Director and Chief Executive Officer of Nordson Corporation since August 1, 2019. He served as an Executive Vice President, Welding Segme...


CEO Compensation Analysis

Compensation vs Market: Naga's total compensation ($USD10.31M) is about average for companies of similar size in the US market ($USD12.91M).

Compensation vs Earnings: Naga's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NDSN's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: NDSN's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nordson Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Nordson Corporation
  • Ticker: NDSN
  • Exchange: NasdaqGS
  • Founded: 1935
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$13.241b
  • Shares outstanding: 57.51m
  • Website: https://www.nordson.com

Number of Employees


Location

  • Nordson Corporation
  • 28601 Clemens Road
  • Westlake
  • Ohio
  • 44145
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/04/30
Annual Earnings2021/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.