Market Cap
US$9.9b
Last Updated
2020/01/23 23:47 UTC
Data Sources
Company Financials +
Executive Summary
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Nordson's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NDSN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
NDSN
-1.7%
US Machinery
-0.09%
US Market
1 Year Return
36.4%
NDSN
20.1%
US Machinery
23.9%
US Market
Return vs Industry: NDSN exceeded the US Machinery industry which returned 22.4% over the past year.
Return vs Market: NDSN exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| NDSN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -1.7% | -0.09% |
| 30 Day | 5.5% | -0.9% | 3.1% |
| 90 Day | 11.7% | 5.0% | 10.4% |
| 1 Year | 37.8%36.4% | 22.4%20.1% | 26.6%23.9% |
| 3 Year | 54.0%49.5% | 39.3%30.3% | 50.9%41.2% |
| 5 Year | 146.9%133.8% | 77.6%56.2% | 78.1%58.5% |
Price Volatility Vs. Market
How volatile is Nordson's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Nordson Corporation (NASDAQ:NDSN): Should The Recent Earnings Drop Worry You?1 week ago | Simply Wall St
Nordson (NASDAQ:NDSN) Has A Pretty Healthy Balance Sheet3 weeks ago | Simply Wall St
Don't Sell Nordson Corporation (NASDAQ:NDSN) Before You Read ThisValuation
Is Nordson undervalued compared to its fair value and its price relative to the market?
29.37x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NDSN ($165.09) is trading above our estimate of fair value ($126.17)
Significantly Below Fair Value: NDSN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NDSN is poor value based on its PE Ratio (28.1x) compared to the Machinery industry average (23.4x).
PE vs Market: NDSN is poor value based on its PE Ratio (28.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: NDSN is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: NDSN is overvalued based on its PB Ratio (6x) compared to the US Machinery industry average (2.5x).
Next Steps
Future Growth
How is Nordson forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NDSN's forecast earnings growth (9.1% per year) is above the savings rate (1.7%).
Earnings vs Market: NDSN's earnings (9.1% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: NDSN's earnings are forecast to grow, but not significantly.
Revenue vs Market: NDSN's revenue (3.4% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: NDSN's revenue (3.4% 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 (22.5%)
Next Steps
Past Performance
How has Nordson performed over the past 5 years?
9.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NDSN has high quality earnings.
Growing Profit Margin: NDSN's current net profit margins (15.4%) are lower than last year (16.7%).
Past Earnings Growth Analysis
Earnings Trend: NDSN's earnings have grown by 9.9% per year over the past 5 years.
Accelerating Growth: NDSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NDSN had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).
Return on Equity
High ROE: NDSN's Return on Equity (21.3%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Nordson's financial position?
Financial Position Analysis
Short Term Liabilities: NDSN's short term assets ($1.0B) exceed its short term liabilities ($477.6M).
Long Term Liabilities: NDSN's short term assets ($1.0B) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: NDSN's debt to equity ratio (78.7%) is considered high.
Reducing Debt: NDSN's debt to equity ratio has reduced from 88.5% to 78.7% over the past 5 years.
Debt Coverage: NDSN's debt is well covered by operating cash flow (30.8%).
Interest Coverage: NDSN's interest payments on its debt are well covered by EBIT (10.5x coverage).
Balance Sheet
Inventory Level: NDSN has a low level of unsold assets or inventory.
Debt Coverage by Assets: NDSN's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Nordson's current dividend yield, its reliability and sustainability?
0.88%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NDSN's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: NDSN's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.4%), NDSN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NDSN's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).
Next Steps
Management
What is the CEO of Nordson's salary, the management and board of directors tenure and is there insider trading?
6.0yrs
Average management tenure
CEO
Naga Nagarajan (56yo)
0.4yrs
Tenure
US$2,161,323
Compensation
Mr. Sundaram Nagarajan, also known as Naga, has been the President, Director and Chief Executive Officer of Nordson Corporation since August 1, 2019. Mr. Nagarajan served as an Executive Vice President of ...
CEO Compensation Analysis
Compensation vs Market: Naga's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD6.46M).
Compensation vs Earnings: Insufficient data to compare Naga's compensation with company performance.
Management Age and Tenure
6.0yrs
Average Tenure
55yo
Average Age
Experienced Management: NDSN's management team is seasoned and experienced (6 years average tenure).
Board Age and Tenure
8.9yrs
Average Tenure
61.5yo
Average Age
Experienced Board: NDSN's board of directors are considered experienced (8.9 years average tenure).
Insider Trading
Insider Buying: NDSN insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Information Officer Executive Vice President of Human Resources & Information Systems |
| Shares | 1,500 |
| Max Price | US$162.73 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 3,041 |
| Max Price | US$163.07 |
| Entity | Individual |
| Shares | 3,079 |
| Max Price | US$164.06 |
| Entity | Individual |
| Role | Chief Information Officer Executive Vice President of Human Resources & Information Systems |
| Shares | 2,375 |
| Max Price | US$166.56 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | US$165.95 |
| Entity | Individual |
| Shares | 12,100 |
| Max Price | US$146.22 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,536 |
| Max Price | US$145.55 |
| Entity | Individual |
| Shares | 8,538 |
| Max Price | US$146.81 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$138.85 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 2,411 |
| Max Price | US$138.14 |
| Entity | Individual |
| Shares | 6,000 |
| Max Price | US$128.06 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 998 |
| Max Price | US$127.88 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President |
| Shares | 5,860 |
| Max Price | US$137.14 |
| Entity | Individual |
| Shares | 4,000 |
| Max Price | US$137.98 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Shelly Peet (54yo)
Executive Vice President of Human Resources & Information Systems
- Tenure: 16.3yrs
John Keane (58yo)
Executive Vice President
- Tenure: 8yrs
- Compensation: US$3.19m
Jim DeVries (60yo)
Executive Vice President of Continuous Improvement
- Tenure: 1.9yrs
Greg Thaxton (58yo)
Executive VP & CFO
- Tenure: 12yrs
- Compensation: US$3.42m
Jeff Pembroke (52yo)
Executive Vice President
- Tenure: 5yrs
- Compensation: US$2.05m
Greg Merk (48yo)
Executive Vice President
- Tenure: 7yrs
- Compensation: US$2.52m
Lara Mahoney
Vice President of Investor Relations & Corporate Communications
- Tenure: 1.8yrs
Anne Pombier
Vice President of Corporate Development
- Tenure: 10yrs
Naga Nagarajan (56yo)
President
- Tenure: 0.4yrs
- Compensation: US$2.16m
Gina Beredo (45yo)
Executive VP
- Tenure: 2.1yrs
Board Members
Frank Jaehnert (62yo)
Independent Director
- Tenure: 7.9yrs
- Compensation: US$232.83k
Vic Richey (62yo)
Independent Director
- Tenure: 9.9yrs
- Compensation: US$250.91k
Joe Keithley (70yo)
Independent Director
- Tenure: 18.5yrs
- Compensation: US$290.23k
Mike Merriman (63yo)
Independent Chairman
- Tenure: 1.9yrs
- Compensation: US$332.89k
Mary Puma (61yo)
Independent Director
- Tenure: 18.5yrs
- Compensation: US$242.57k
Randy Carson (68yo)
Independent Director
- Tenure: 10.8yrs
- Compensation: US$235.97k
Lee Banks (56yo)
Independent Director
- Tenure: 9.9yrs
- Compensation: US$221.52k
Art George (57yo)
Independent Director
- Tenure: 7.9yrs
- Compensation: US$230.49k
Ginger Jones (58yo)
Independent Director
- Tenure: 0.2yrs
Naga Nagarajan (56yo)
President
- Tenure: 0.4yrs
- Compensation: US$2.16m
Company Information
Nordson Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nordson Corporation
- Ticker: NDSN
- Exchange: NasdaqGS
- Founded: 1935
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$9.948b
- Shares outstanding: 57.74m
- Website: https://www.nordson.com
Number of Employees
Location
- Nordson Corporation
- 28601 Clemens Road
- Westlake
- Ohio
- 44145
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NDSN | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Dec 1979 |
| ND1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1979 |
Biography
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. Its Adhesive Dispensing Systems 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. The company’s Advanced Technology Systems segment offers automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. Its Industrial Coating Systems segment provides automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 23:47 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/10/31 |
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.