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.

Snowflake

Fundamentals

Mediocre balance sheet with acceptable track record.


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


Market Performance


7 Day Return

-1.8%

NDSN

-2.7%

US Machinery

-0.6%

US Market


1 Year Return

-1.1%

NDSN

-7.5%

US Machinery

0.6%

US Market

NDSN outperformed the Machinery industry which returned -6.8% over the past year.

NDSN underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

NDSNIndustryMarket
7 Day-1.8%-2.7%-0.6%
30 Day8.0%5.6%2.2%
90 Day5.9%-1.9%1.1%
1 Year0.04%-1.1%-5.6%-7.5%2.9%0.6%
3 Year50.4%46.0%48.0%38.4%44.6%35.2%
5 Year98.3%87.7%54.1%35.1%61.9%44.2%

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 week ago | Simply Wall St

Despite Its High P/E Ratio, Is Nordson Corporation (NASDAQ:NDSN) Still Undervalued?

Valuation

Is Nordson undervalued based on future cash flows and its price relative to the stock market?

6%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nordson's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Nordson's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Nordson is overvalued based on earnings compared to the US Machinery industry average.

Nordson is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Nordson is poor value based on expected growth next year.


Price Based on Value of Assets

Nordson is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Nordson expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nordson's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Nordson's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

Nordson's revenue growth is positive but not above the United States of America market average.

Nordson's earnings growth is positive but not above the United States of America market average.

Nordson's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Nordson will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Nordson performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nordson's year on year earnings growth rate has been positive over the past 5 years.

Nordson's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Nordson's 1-year earnings growth is negative, it can't be compared to the US Machinery industry average.


Return on Equity

Nordson has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Nordson used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Nordson's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nordson's financial position?


Financial Position Analysis

Nordson is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nordson's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Nordson's level of debt (86.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (65.2% vs 86.6% today).

Debt is well covered by operating cash flow (29.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

1.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nordson's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Nordson's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Nordson's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Naga Nagarajan (56yo)

0.08yrs

Tenure

0

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


Management Age and Tenure

5.7yrs

Average Tenure

55yo

Average Age

The average tenure for the Nordson management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.6yrs

Average Tenure

62yo

Average Age

The tenure for the Nordson board of directors is about average.


Insider Trading

Nordson individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,253,46413 Sep 19
Michael Hilton
EntityIndividual
Role
Member of the Board of Directors
Senior Advisor
Shares8,538
Max PriceUS$146.81
SellUS$694,25009 Sep 19
Michael Hilton
EntityIndividual
Role
Member of the Board of Directors
Senior Advisor
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
Role
Member of the Board of Directors
Senior Advisor
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
Role
Member of the Board of Directors
Senior Advisor
Shares4,000
Max PriceUS$137.98
SellUS$606,15414 Jan 19
Gregory Thaxton
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares4,949
Max PriceUS$122.48
SellUS$504,35804 Jan 19
Michael Hilton
EntityIndividual
Role
Member of the Board of Directors
Senior Advisor
Shares4,330
Max PriceUS$116.48

Ownership Breakdown


Management Team

  • Shelly Peet (54yo)

    Executive Vice President of Human Resources & Information Systems

    • Tenure: 16yrs
  • John Keane (58yo)

    Executive Vice President

    • Tenure: 7.7yrs
    • Compensation: US$1.85m
  • Greg Thaxton (58yo)

    Executive VP & CFO

    • Tenure: 11.7yrs
    • Compensation: US$1.96m
  • Jeff Pembroke (52yo)

    Executive Vice President

    • Tenure: 4.7yrs
    • Compensation: US$1.55m
  • Mike Hilton (65yo)

    Senior Advisor

    • Tenure: 9.7yrs
    • Compensation: US$7.00m
  • Greg Merk (48yo)

    Executive Vice President

    • Tenure: 6.7yrs
    • Compensation: US$1.53m
  • Lara Mahoney

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 1.4yrs
  • Anne Pombier

    Vice President of Corporate Development

    • Tenure: 9.7yrs
  • Naga Nagarajan (56yo)

    President & CEO

    • Tenure: 0.08yrs
  • Gina Beredo (44yo)

    Executive VP

    • Tenure: 1.8yrs

Board Members

  • Frank Jaehnert (62yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$221.35k
  • Vic Richey (62yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$232.33k
  • Joe Keithley (70yo)

    Director

    • Tenure: 18.2yrs
    • Compensation: US$289.28k
  • Mike Merriman (63yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$288.01k
  • Mary Puma (61yo)

    Independent Director

    • Tenure: 18.2yrs
    • Compensation: US$219.36k
  • Randy Carson (68yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$221.08k
  • Lee Banks (56yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$211.29k
  • Mike Hilton (65yo)

    Senior Advisor

    • Tenure: 9.7yrs
    • Compensation: US$7.00m
  • Art George (57yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$218.11k

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$8.261b
  • Shares outstanding: 57.49m
  • 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 Analysis2019/09/20 23:41
End of Day Share Price2019/09/20 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.