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Market Cap

US$12.1b

Last Updated

2021/05/09 23:19 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. More Details


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NDSN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

NDSN

4.4%

US Machinery

0.2%

US Market


1 Year Return

25.6%

NDSN

88.6%

US Machinery

49.9%

US Market

Return vs Industry: NDSN underperformed the US Machinery industry which returned 88.6% over the past year.

Return vs Market: NDSN underperformed the US Market which returned 49.9% over the past year.


Shareholder returns

NDSNIndustryMarket
7 Day-1.2%4.4%0.2%
30 Day2.8%4.9%1.5%
90 Day9.9%14.3%3.3%
1 Year26.6%25.6%92.9%88.6%52.4%49.9%
3 Year62.6%57.9%70.8%60.6%63.7%53.4%
5 Year183.9%170.5%173.7%146.2%130.6%104.9%

Long-Term 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

Valuation

Is Nordson undervalued compared to its fair value and its price relative to the market?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NDSN ($208.83) is trading below our estimate of fair value ($249.78)

Significantly Below Fair Value: NDSN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NDSN is poor value based on its PE Ratio (43.9x) compared to the US Machinery industry average (35.5x).

PE vs Market: NDSN is poor value based on its PE Ratio (43.9x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: NDSN is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: NDSN is overvalued based on its PB Ratio (6.5x) compared to the US Machinery industry average (3.5x).


Future Growth

How is Nordson forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDSN's forecast earnings growth (13.4% per year) is above the savings rate (2%).

Earnings vs Market: NDSN's earnings (13.4% per year) are forecast to grow slower than the US market (15.1% per year).

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

Revenue vs Market: NDSN's revenue (8.2% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: NDSN's revenue (8.2% 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 (20.8%)


Past Performance

How has Nordson performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDSN has a large one-off loss of $87.4M impacting its January 31 2021 financial results.

Growing Profit Margin: NDSN's current net profit margins (12.8%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: NDSN's earnings have grown by 4.8% 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 (-19.2%) over the past year, making it difficult to compare to the Machinery industry average (-9.3%).


Return on Equity

High ROE: NDSN's Return on Equity (14.8%) is considered low.


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 ($359.6M).

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 (54.9%) is considered high.

Reducing Debt: NDSN's debt to equity ratio has reduced from 172.6% to 54.9% over the past 5 years.

Debt Coverage: NDSN's debt is well covered by operating cash flow (51.9%).

Interest Coverage: NDSN's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet


Dividend

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

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NDSN's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: NDSN's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.4%).


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 reasonably low payout ratio (32.4%), 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 (22.8% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Naga Nagarajan (57 yo)

1.75yrs

Tenure

US$5,350,475

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 ($USD5.35M) is below average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

Experienced Management: NDSN's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: NDSN's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NDSN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$12.135b
  • Shares outstanding: 58.11m
  • Website: https://www.nordson.com

Number of Employees


Location

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

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 23:19
End of Day Share Price2021/05/07 00:00
Earnings2021/01/31
Annual Earnings2020/10/31


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.