NasdaqGS:NDSN

Stock Analysis Report

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

Earnings are forecast to grow 9.15% per year

Pays a reliable dividend of 0.92%

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months



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

3.6%

NDSN

1.9%

US Machinery

2.0%

US Market


1 Year Return

32.1%

NDSN

18.6%

US Machinery

23.5%

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

NDSNIndustryMarket
7 Day3.6%1.9%2.0%
30 Day3.4%1.5%4.3%
90 Day15.5%10.8%12.2%
1 Year33.5%32.1%20.8%18.6%26.1%23.5%
3 Year56.8%52.2%46.1%36.7%53.1%43.2%
5 Year146.8%133.8%78.2%56.6%75.5%56.1%

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?

28.89x

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?

9.1%

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?

0.90%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.9%

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

0

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  ...


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

SellUS$244,09509 Jan 20
Shelly Peet
EntityIndividual
Role
Chief Information Officer
Executive Vice President of Human Resources & Information Systems
Shares1,500
Max PriceUS$162.73
SellUS$495,89609 Jan 20
Gregory Thaxton
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,041
Max PriceUS$163.07
SellUS$504,99031 Dec 19
Michael Hilton
EntityIndividual
Shares3,079
Max PriceUS$164.06
SellUS$395,58018 Dec 19
Shelly Peet
EntityIndividual
Role
Chief Information Officer
Executive Vice President of Human Resources & Information Systems
Shares2,375
Max PriceUS$166.56
BuyUS$165,95018 Dec 19
Ginger Jones
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$165.95
SellUS$1,769,26221 Oct 19
Michael Hilton
EntityIndividual
Shares12,100
Max PriceUS$146.22
SellUS$660,21501 Oct 19
Arthur George
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,536
Max PriceUS$145.55
SellUS$1,253,46413 Sep 19
Michael Hilton
EntityIndividual
Shares8,538
Max PriceUS$146.81
SellUS$694,25009 Sep 19
Michael Hilton
EntityIndividual
Shares5,000
Max PriceUS$138.85
SellUS$333,05623 Jul 19
Gregory Thaxton
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,411
Max PriceUS$138.14
SellUS$768,36031 May 19
Michael Hilton
EntityIndividual
Shares6,000
Max PriceUS$128.06
SellUS$127,62429 May 19
Mary Puma
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares998
Max PriceUS$127.88
SellUS$803,64008 Apr 19
Gregory Merk
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares5,860
Max PriceUS$137.14
SellUS$551,92006 Mar 19
Michael Hilton
EntityIndividual
Shares4,000
Max PriceUS$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$1.85m
  • Jim DeVries (60yo)

    Executive Vice President of Continuous Improvement

    • Tenure: 1.9yrs
  • Greg Thaxton (58yo)

    Executive VP & CFO

    • Tenure: 12yrs
    • Compensation: US$1.96m
  • Jeff Pembroke (52yo)

    Executive Vice President

    • Tenure: 5yrs
    • Compensation: US$1.55m
  • Greg Merk (48yo)

    Executive Vice President

    • Tenure: 7yrs
    • Compensation: US$1.53m
  • 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
  • Gina Beredo (45yo)

    Executive VP

    • Tenure: 2.1yrs

Board Members

  • Frank Jaehnert (62yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$221.35k
  • Vic Richey (62yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$232.33k
  • Joe Keithley (70yo)

    Director

    • Tenure: 18.5yrs
    • Compensation: US$289.28k
  • Mike Merriman (63yo)

    Independent Chairman

    • Tenure: 1.9yrs
    • Compensation: US$288.01k
  • Mary Puma (61yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$219.36k
  • Randy Carson (68yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$221.08k
  • Lee Banks (56yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$211.29k
  • Art George (57yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$218.11k
  • Ginger Jones (55yo)

    Director

    • Tenure: 0.2yrs
  • Naga Nagarajan (56yo)

    President

    • Tenure: 0.4yrs

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$9.714b
  • Shares outstanding: 57.71m
  • Website: https://www.nordson.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDSNNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 1979
ND1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 23:44
End of Day Share Price2020/01/17 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.