NasdaqGS:NDSN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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.


Snowflake Analysis

Solid track record with adequate balance sheet.


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

2.6%

NDSN

7.1%

US Machinery

1.2%

US Market


1 Year Return

48.0%

NDSN

16.7%

US Machinery

16.8%

US Market

Return vs Industry: NDSN exceeded the US Machinery industry which returned 13.3% over the past year.

Return vs Market: NDSN exceeded the US Market which returned 16.4% over the past year.


Shareholder returns

NDSNIndustryMarket
7 Day2.6%7.1%1.2%
30 Day8.2%14.3%4.9%
90 Day25.4%35.3%20.0%
1 Year49.5%48.0%19.0%16.7%19.3%16.8%
3 Year59.9%55.3%28.0%19.7%43.7%34.4%
5 Year186.1%171.3%74.1%53.2%75.5%56.6%

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?

34.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NDSN ($201.64) is trading above our estimate of fair value ($121.09)

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 (34.1x) compared to the US Machinery industry average (26.5x).

PE vs Market: NDSN is poor value based on its PE Ratio (34.1x) 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 (7x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

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

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDSN's forecast earnings growth (11.1% per year) is above the savings rate (2.2%).

Earnings vs Market: NDSN's earnings (11.1% per year) are forecast to grow slower than the US market (23.7% per year).

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

Revenue vs Market: NDSN's revenue (5.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: NDSN's revenue (5.1% 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 low in 3 years time (18.2%).


Next Steps

Past Performance

How has Nordson performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDSN has high quality earnings.

Growing Profit Margin: NDSN's current net profit margins (15.7%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: NDSN's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: NDSN's earnings growth over the past year (5.8%) is below its 5-year average (9.8% per year).

Earnings vs Industry: NDSN earnings growth over the past year (5.8%) exceeded the Machinery industry -13.9%.


Return on Equity

High ROE: NDSN's Return on Equity (20.6%) is considered high.


Next Steps

Financial Health

How is Nordson's financial position?


Financial Position Analysis

Short Term Liabilities: NDSN's short term assets ($1.1B) exceed its short term liabilities ($360.2M).

Long Term Liabilities: NDSN's short term assets ($1.1B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: NDSN's debt to equity ratio (77.5%) is considered high.

Reducing Debt: NDSN's debt to equity ratio has reduced from 107.4% to 77.5% over the past 5 years.

Debt Coverage: NDSN's debt is well covered by operating cash flow (34.3%).

Interest Coverage: NDSN's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Next Steps

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 (1.62%).

High Dividend: NDSN's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (4.35%).


Stability and Growth of Payments

Stable Dividend: NDSN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NDSN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NDSN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NDSN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Naga Nagarajan (57 yo)

1

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 ($USD2.16M) is below average for companies of similar size in the US market ($USD11.30M).

Compensation vs Earnings: Insufficient data to compare Naga's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sundaram Nagarajan
President1yrUS$2.16m0.049%
$ 5.7m
John Keane
Executive Vice President8.58yrsUS$3.19m0.099%
$ 11.5m
Gregory Thaxton
Executive Vice President0.083yrUS$3.42m0.096%
$ 11.2m
Jeffrey Pembroke
Executive Vice President5.58yrsUS$2.05m0.042%
$ 4.9m
Gregory Merk
Executive Vice President7.58yrsUS$2.52m0.11%
$ 12.7m
Joseph Kelley
Executive VP & CFO0.083yrno data0.011%
$ 1.2m
Shelly Peet
Executive Vice President of Human Resources & Information Systems16.92yrsno data0.055%
$ 6.4m
Lara Mahoney
Vice President of Investor Relations & Corporate Communications2.33yrsno datano data
Gina Beredo
Executive VP2.58yrsno data0.013%
$ 1.5m
Anne Pombier
Vice President of Corporate Development10.58yrsno datano data
James DeVries
Executive Vice President of Continuous Improvement2.5yrsno data0.090%
$ 10.5m
Joseph Stockunas
Executive Vice President5.58yrsno data0.026%
$ 3.0m

4.1yrs

Average Tenure

56yo

Average Age

Experienced Management: NDSN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sundaram Nagarajan
President1yrUS$2.16m0.049%
$ 5.7m
Frank Jaehnert
Independent Director8.5yrsUS$232.83k0.021%
$ 2.5m
Victor Richey
Independent Director10.5yrsUS$250.91kno data
Joseph Keithley
Independent Director19.08yrsUS$290.23kno data
Michael Merriman
Independent Chairman2.5yrsUS$332.89k0.0047%
$ 544.3k
Mary Puma
Independent Director19.08yrsUS$242.57k0.032%
$ 3.8m
Randolph Carson
Independent Director11.33yrsUS$235.97k0.023%
$ 2.6m
Lee Banks
Independent Director10.5yrsUS$221.52k0.027%
$ 3.2m
Arthur George
Independent Director8.5yrsUS$230.49kno data
Ginger Jones
Independent Director0.75yrno data0.0017%
$ 201.2k

9.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NDSN's board of directors are considered experienced (9.5 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$11.631b
  • Shares outstanding: 57.68m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:35
End of Day Share Price2020/08/10 00:00
Earnings2020/04/30
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.