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Nordson

Nasdaq:NDSN
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NDSN
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. The last earnings update was 39 days ago. More info.


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NDSN Share Price and Events
7 Day Returns
2%
NasdaqGS:NDSN
0.6%
US Machinery
0.8%
US Market
1 Year Returns
7.8%
NasdaqGS:NDSN
6%
US Machinery
4.8%
US Market
NDSN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nordson (NDSN) 2% 6.8% -4.1% 7.8% 60.8% 77.4%
US Machinery 0.6% 4.7% -0.5% 6% 46.6% 28.8%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • NDSN outperformed the Machinery industry which returned 6% over the past year.
  • NDSN outperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
NDSN
Industry
5yr Volatility vs Market
Related Companies

NDSN Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nordson to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nordson.

NasdaqGS:NDSN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NDSN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.086 (1 + (1- 21%) (17.27%))
1.157
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.157 * 5.96%)
9.63%

Discounted Cash Flow Calculation for NasdaqGS:NDSN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nordson is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:NDSN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.63%)
2020 430.80 Analyst x3 392.97
2021 460.06 Est @ 6.79% 382.82
2022 485.71 Est @ 5.57% 368.67
2023 508.64 Est @ 4.72% 352.17
2024 529.61 Est @ 4.12% 334.50
2025 549.23 Est @ 3.71% 316.43
2026 567.98 Est @ 3.41% 298.50
2027 586.20 Est @ 3.21% 281.02
2028 604.16 Est @ 3.06% 264.21
2029 622.07 Est @ 2.96% 248.15
Present value of next 10 years cash flows $3,239.45
NasdaqGS:NDSN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $622.07 × (1 + 2.73%) ÷ (9.63% – 2.73%)
$9,267.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,267.39 ÷ (1 + 9.63%)10
$3,696.85
NasdaqGS:NDSN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,239.45 + $3,696.85
$6,936.30
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,936.30 / 57.45
$120.74
NasdaqGS:NDSN Discount to Share Price
Calculation Result
Value per share (USD) From above. $120.74
Current discount Discount to share price of $138.98
= -1 x ($138.98 - $120.74) / $120.74
-15.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Nordson is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nordson's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nordson's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NDSN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $5.57
NasdaqGS:NDSN Share Price ** NasdaqGS (2019-07-15) in USD $138.98
United States of America Machinery Industry PE Ratio Median Figure of 98 Publicly-Listed Machinery Companies 21.3x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nordson.

NasdaqGS:NDSN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NDSN Share Price ÷ EPS (both in USD)

= 138.98 ÷ 5.57

24.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Nordson's expected growth come at a high price?
Raw Data
NasdaqGS:NDSN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
13%per year
United States of America Machinery Industry PEG Ratio Median Figure of 79 Publicly-Listed Machinery Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:NDSN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.93x ÷ 13%

1.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nordson is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Nordson's assets?
Raw Data
NasdaqGS:NDSN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $25.61
NasdaqGS:NDSN Share Price * NasdaqGS (2019-07-15) in USD $138.98
United States of America Machinery Industry PB Ratio Median Figure of 126 Publicly-Listed Machinery Companies 2.3x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:NDSN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NDSN Share Price ÷ Book Value per Share (both in USD)

= 138.98 ÷ 25.61

5.43x

* Primary Listing of Nordson.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nordson is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Nordson's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Nordson has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NDSN Future Performance

 How is Nordson expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nordson expected to grow at an attractive rate?
  • Nordson's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Nordson's earnings growth is positive but not above the United States of America market average.
  • Nordson's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NDSN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NDSN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 13%
NasdaqGS:NDSN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.7%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NDSN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NDSN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-10-31 2,351 499 401 8
2019-10-31 2,241 439 358 8
NasdaqGS:NDSN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 2,200 454 322
2019-01-31 2,202 452 321
2018-10-31 2,255 505 377
2018-07-31 2,259 478 371
2018-04-30 2,268 425 377
2018-01-31 2,210 385 350
2017-10-31 2,067 357 296
2017-07-31 2,002 358 292
2017-04-30 1,903 349 275
2017-01-31 1,844 364 281
2016-10-31 1,809 335 272
2016-07-31 1,746 289 246

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nordson's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Nordson's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NDSN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Nordson Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NDSN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-10-31 6.94 7.10 6.85 5.00
2019-10-31 6.09 6.16 6.05 3.00
NasdaqGS:NDSN Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 5.57
2019-01-31 5.55
2018-10-31 6.51
2018-07-31 6.40
2018-04-30 6.53
2018-01-31 6.08
2017-10-31 5.14
2017-07-31 5.08
2017-04-30 4.79
2017-01-31 4.91
2016-10-31 4.76
2016-07-31 4.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nordson will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nordson's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nordson has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NDSN Past Performance

  How has Nordson performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nordson's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Nordson's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nordson Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NDSN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 2,199.57 322.08 730.15
2019-01-31 2,202.15 321.39 736.47
2018-10-31 2,254.67 377.38 734.86
2018-07-31 2,259.31 370.51 733.17
2018-04-30 2,267.51 377.08 721.94
2018-01-31 2,209.94 350.37 711.49
2017-10-31 2,066.98 295.80 678.86
2017-07-31 2,002.33 291.83 650.27
2017-04-30 1,902.79 274.59 626.00
2017-01-31 1,844.24 280.67 599.37
2016-10-31 1,808.99 271.84 594.29
2016-07-31 1,745.91 245.60 586.72
2016-04-30 1,718.74 230.77 582.22
2016-01-31 1,681.88 209.39 582.83
2015-10-31 1,688.67 211.11 584.82
2015-07-31 1,711.06 233.57 584.73
2015-04-30 1,706.88 242.06 583.18
2015-01-31 1,723.61 254.78 580.42
2014-10-31 1,704.02 246.77 575.44
2014-07-31 1,646.25 234.47 565.35
2014-04-30 1,590.66 222.02 555.11
2014-01-31 1,555.30 214.69 547.01
2013-10-31 1,542.92 221.82 541.17
2013-07-31 1,570.78 229.73 538.86
2013-04-30 1,547.69 231.00 531.87
2013-01-31 1,480.79 228.50 508.32
2012-10-31 1,409.58 224.83 487.81
2012-07-31 1,301.92 211.82 463.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nordson has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Nordson used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Nordson's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nordson's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nordson has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NDSN Health

 How is Nordson's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nordson's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Nordson's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nordson Company Filings, last reported 2 months ago.

NasdaqGS:NDSN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 1,471.26 1,374.13 149.18
2019-01-31 1,401.54 1,385.13 85.55
2018-10-31 1,450.74 1,314.09 95.68
2018-07-31 1,422.92 1,555.12 266.80
2018-04-30 1,362.91 1,539.05 155.95
2018-01-31 1,295.12 1,585.43 132.84
2017-10-31 1,155.49 1,582.98 90.38
2017-07-31 1,084.43 1,697.22 110.71
2017-04-30 962.27 1,715.22 88.41
2017-01-31 893.84 954.53 87.66
2016-10-31 851.60 983.01 67.24
2016-07-31 811.81 1,044.17 60.29
2016-04-30 736.70 1,073.02 47.92
2016-01-31 650.11 1,136.39 60.74
2015-10-31 660.02 1,116.59 50.27
2015-07-31 820.43 938.58 61.00
2015-04-30 818.23 887.69 51.45
2015-01-31 837.90 873.30 40.93
2014-10-31 904.80 799.80 42.31
2014-07-31 958.78 632.52 53.22
2014-04-30 923.22 655.74 49.73
2014-01-31 911.68 632.13 46.86
2013-10-31 887.86 652.59 42.38
2013-07-31 789.64 558.98 75.37
2013-04-30 735.60 617.26 62.79
2013-01-31 714.43 623.24 54.73
2012-10-31 669.77 633.71 41.52
2012-07-31 614.93 693.64 53.64
  • Nordson's level of debt (93.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (71.6% vs 93.7% today).
  • Debt is well covered by operating cash flow (32.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.5x coverage).
X
Financial health checks
We assess Nordson's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nordson has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NDSN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from Nordson dividends. Estimated to be 1.07% next year.
If you bought $2,000 of Nordson shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nordson's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Nordson's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NDSN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 75 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NDSN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-10-31 1.55 4.00
2019-10-31 1.41 4.00
NasdaqGS:NDSN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 1.400 1.047
2019-02-12 1.400 1.013
2018-12-11 1.400 1.144
2018-08-10 1.400 1.077
2018-05-15 1.200 0.918
2018-02-06 1.200 0.883
2017-12-05 1.200 0.843
2017-08-11 1.200 0.995
2017-05-16 1.080 0.885
2017-02-07 1.080 0.879
2016-12-06 1.080 0.961
2016-08-12 1.080 1.082
2016-05-18 0.960 1.119
2016-02-09 0.960 1.302
2015-12-08 0.960 1.583
2015-08-14 0.960 1.410
2015-05-12 0.880 1.126
2015-02-10 0.880 1.125
2014-12-01 0.880 1.164
2014-08-15 0.880 1.147
2014-05-13 0.720 0.915
2014-02-11 0.720 1.000
2013-12-10 0.720 1.003
2013-08-16 0.720 1.000
2013-05-14 0.600 0.840
2013-02-12 0.600 0.893
2012-12-11 0.600 0.920
2012-08-14 0.600 1.005
2012-05-15 0.500 0.973
2012-02-14 0.500 0.936
2011-12-05 0.500 1.126
2011-08-16 0.500 1.158
2011-05-17 0.420 0.827
2011-02-15 0.420 0.776
2010-12-07 0.420 0.906
2010-08-17 0.420 1.134
2010-05-18 0.380 1.223
2010-02-16 0.380 1.100
2009-08-18 0.380 1.344
2009-05-19 0.365 1.783
2009-02-17 0.365 2.474
2008-12-10 0.365 2.301
2008-08-19 0.365 1.858

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Nordson's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.1x 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.
X
Income/ dividend checks
We assess Nordson's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nordson afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nordson has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NDSN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Hilton
COMPENSATION $6,997,090
AGE 65
TENURE AS CEO 9.5 years
CEO Bio

Mr. Michael F. Hilton, also known as Mike, has been the Chief Executive Officer and President of Nordson Corporation since January 16, 2010. Mr. Hilton serves as the Chief Executive Officer and President of Dage Holdings Limited. Mr. Hilton joined Nordson Corporation in 2010. He served as General Manager of Electronics & Performance Materials of Air Products & Chemicals Inc., from 2007 to 2010 and also served as its Senior Vice President from 2008 to 2010. He served 33 years at Air Products in a variety of staff, management and operations positions. Mr. Hilton served as Vice President of Electronics and Performance Materials of Air Products & Chemicals Inc. since 2007 and also served as its Vice President of Electronics Businesses since 2003. He joined Air Products in 1976 as a participant in Air Product’s Career Development Program. He served engineering positions in economic evaluation and industrial cryogenics and also served as Business Manager of Industrial Cryogenics since 1982. He served management positions in Air Products's Process Systems Group and since 1994 served as Manager of the Gases and Equipment Group's Customer Generation Team. Since 1995, he served as Business Manager of product supply in the general industries department of Air Products until 1997 and also served as its Director of Investor Relations since 1997. Mr. Hilton served as Vice President and General Manager of Industrial Chemicals since 2000; Vice President of Electronic Gases, Equipment and Services since 2002 and Vice President of Electronics Business since 2003. He served as Co-Chairman of SEMI Industry Strategy Symposium (ISS) committee and a Member of the Association's North American Advisory Board. He has been a Director of Nordson Corporation since February 2010. He has been an Independent Director at Lincoln Electric Holdings Inc. since July 27, 2015. He has been a Trustee of Manufacturers Alliance for Productivity and Innovation, Inc. since April 2010. He serves as a Director of Dage Holdings Limited. He has been an Independent Director of Ryder System, Inc. since July 1, 2012. He is a Member of National Investor Relations Institute and American Institute of Chemical Engineers. Mr. Hilton has a B.S. degree in Chemical Engineering in 1976 and an M.B.A. in 1981 from Lehigh University.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Nordson management team in years:

7
Average Tenure
56
Average Age
  • The average tenure for the Nordson management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Hilton

TITLE
President
COMPENSATION
$7M
AGE
65
TENURE
9.5 yrs

Greg Thaxton

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
58
TENURE
11.5 yrs

John Keane

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
58
TENURE
7.5 yrs

Jeff Pembroke

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
52
TENURE
4.5 yrs

Greg Merk

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
48
TENURE
6.5 yrs

Shelly Peet

TITLE
Executive Vice President of Human Resources & Information Systems
AGE
54
TENURE
15.8 yrs

Lara Mahoney

TITLE
Vice President of Investor Relations & Corporate Communications
TENURE
1.3 yrs

Gina Beredo

TITLE
Executive VP
AGE
44
TENURE
1.6 yrs

Anne Pombier

TITLE
Vice President of Corporate Development
TENURE
9.5 yrs

Jim DeVries

TITLE
Executive Vice President of Continuous Improvement
AGE
60
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Nordson board of directors in years:

9.4
Average Tenure
62
Average Age
  • The tenure for the Nordson board of directors is about average.
Board of Directors

Mike Merriman

TITLE
Chairman
COMPENSATION
$288K
AGE
63
TENURE
1.4 yrs

Mike Hilton

TITLE
President
COMPENSATION
$7M
AGE
65
TENURE
9.5 yrs

Mary Puma

TITLE
Independent Director
COMPENSATION
$219K
AGE
61
TENURE
18 yrs

Vic Richey

TITLE
Independent Director
COMPENSATION
$232K
AGE
62
TENURE
9.4 yrs

Frank Jaehnert

TITLE
Independent Director
COMPENSATION
$221K
AGE
62
TENURE
7.4 yrs

Joe Keithley

TITLE
Director
COMPENSATION
$289K
AGE
70
TENURE
18 yrs

Randy Carson

TITLE
Independent Director
COMPENSATION
$221K
AGE
68
TENURE
10.3 yrs

Lee Banks

TITLE
Independent Director
COMPENSATION
$211K
AGE
56
TENURE
9.4 yrs

Art George

TITLE
Independent Director
COMPENSATION
$218K
AGE
57
TENURE
7.4 yrs
Who owns this company?
Recent Insider Trading
  • Nordson individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. May 19 Sell Michael Hilton Individual 30. May 19 30. May 19 -6,000 $128.06 $-768,360
29. May 19 Sell Mary Puma Individual 28. May 19 28. May 19 -998 $127.88 $-127,624
08. Apr 19 Sell Gregory Merk Individual 05. Apr 19 05. Apr 19 -5,860 $137.14 $-803,640
06. Mar 19 Sell Michael Hilton Individual 05. Mar 19 05. Mar 19 -4,000 $137.98 $-551,920
14. Jan 19 Sell Gregory Thaxton Individual 11. Jan 19 11. Jan 19 -4,949 $122.48 $-606,154
04. Jan 19 Sell Michael Hilton Individual 02. Jan 19 02. Jan 19 -4,330 $116.48 $-504,358
19. Sep 18 Sell Mary Puma Individual 19. Sep 18 19. Sep 18 -2,983 $145.44 $-433,848
X
Management checks
We assess Nordson's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nordson has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NDSN News

Simply Wall St News

What Kind Of Shareholders Own Nordson Corporation (NASDAQ:NDSN)?

Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Private Company Ownership It seems that Private Companies own 4.2%, of the NDSN stock.

Simply Wall St -

Is Nordson (NASDAQ:NDSN) Using Too Much Debt?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … Because it carries more debt than cash, we think it's worth watching Nordson's balance sheet over time. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.

Simply Wall St -

Calculating The Fair Value Of Nordson Corporation (NASDAQ:NDSN)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $378.87 $431.77 $461.57 $487.65 $510.93 $532.19 $552.05 $570.99 $589.38 $607.49 Growth Rate Estimate Source Analyst x3 Analyst x3 Est @ 6.9% Est @ 5.65% Est @ 4.77% Est @ 4.16% Est @ 3.73% Est @ 3.43% Est @ 3.22% Est @ 3.07% Present Value ($, Millions) Discounted @ 9.56% $345.82 $359.73 $351.01 $338.50 $323.72 $307.78 $291.41 $275.12 $259.21 $243.87 Present Value of 10-year Cash Flow (PVCF)= $3.10b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.6%.

Simply Wall St -

Should You Be Worried About Insider Transactions At Nordson Corporation (NASDAQ:NDSN)?

So shareholders might well want to know whether insiders have been buying or selling shares in Nordson Corporation (NASDAQ:NDSN). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Nordson The Last 12 Months Of Insider Transactions At Nordson Over the last year, we can see that the biggest insider sale was by the Executive Vice President, Gregory Merk, for US$804k worth of shares, at about US$137 per share. … Insiders at Nordson Have Sold Stock Recently The last quarter saw substantial insider selling of Nordson shares.

Simply Wall St -

Should You Investigate Nordson Corporation (NASDAQ:NDSN) At US$127?

It’s trading around 9.94% above my intrinsic value, which means if you buy Nordson today, you’d be paying a relatively fair price for it. … Will you have enough confidence to invest in the company should the price drop below its fair value? … However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Simply Wall St -

Should We Worry About Nordson Corporation's (NASDAQ:NDSN) P/E Ratio?

We'll look at Nordson Corporation's (NASDAQ:NDSN) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Nordson: P/E of 24.39 = $135.23 ÷ $5.55 (Based on the trailing twelve months to January 2019.) Is A High P/E Ratio Good? … NasdaqGS:NDSN Price Estimation Relative to Market, May 20th 2019 Its relatively high P/E ratio indicates that Nordson shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

A Close Look At Nordson Corporation’s (NASDAQ:NDSN) 15% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

How Does Nordson Corporation (NASDAQ:NDSN) Stand Up To These Simple Dividend Safety Checks?

Could Nordson Corporation (NASDAQ:NDSN) be an attractive dividend share to own for the long haul? … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … NasdaqGS:NDSN Historical Dividend Yield, April 21st 2019

Simply Wall St -

Should You Worry About Nordson Corporation's (NASDAQ:NDSN) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Mike Hilton's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Nordson Corporation has a market cap of US$8.1b, and is paying total annual CEO compensation of US$7.0m.

Simply Wall St -

Introducing Nordson (NASDAQ:NDSN), A Stock That Climbed 85% In The Last Five Years

For example, long term Nordson Corporation (NASDAQ:NDSN) shareholders have enjoyed a 85% share price rise over the last half decade, well in excess of the market return of around 44% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, Nordson achieved compound earnings per share (EPS) growth of 11% per year.

Simply Wall St -

NDSN Company Info

Description

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, 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.

Details
Name: Nordson Corporation
NDSN
Exchange: NasdaqGS
Founded: 1935
$7,984,436,717
57,450,257
Website: http://www.nordson.com
Address: Nordson Corporation
28601 Clemens Road,
Westlake,
Ohio, 44145,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NDSN Common Shares Nasdaq Global Select US USD 13. Dec 1979
DB ND1 Common Shares Deutsche Boerse AG DE EUR 13. Dec 1979
Number of employees
Current staff
Staff numbers
7,600
Nordson employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:42
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/08
Last earnings filing: 2019/06/06
Last earnings reported: 2019/04/30
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.