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

-1.1%

NasdaqGS:NDSN

-1.2%

US Machinery

-1.2%

US Market


1 Year Return

6.7%

NasdaqGS:NDSN

3.9%

US Machinery

3.4%

US Market

NDSN outperformed the Machinery industry which returned 3.9% over the past year.

NDSN outperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

NDSNIndustryMarket
7 Day-1.1%-1.2%-1.2%
30 Day1.3%-0.3%0.7%
90 Day-7.2%-3.1%1.7%
1 Year7.9%6.7%6.0%3.9%5.7%3.4%
3 Year62.3%57.5%55.9%45.6%45.1%35.5%
5 Year86.5%76.5%47.7%29.2%59.3%41.6%

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

24.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

Nordson's share price is above the future cash flow value, it's not available 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 8 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nordson's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Nordson's earnings are expected to grow by 13% 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?

10.7%

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 (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).


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?

1.08%

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 (3.78%).

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 (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.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Mike Hilton (65yo)

9.5yrs

Tenure

US$6,997,090

Compensation

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 o ...


CEO Compensation Analysis

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.0yrs

Average Tenure

56yo

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

9.4yrs

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$219,00817 Jul 19
Jeffrey Pembroke
EntityIndividual
Role
Executive Vice President
Shares3,200
Max PriceUS$140.19
SellUS$768,36031 May 19
Michael Hilton
EntityIndividual
Role
President
Member of the Board of Directors
Shares6,000
Max PriceUS$128.06
SellUS$127,62429 May 19
Mary Puma
EntityIndividual
Role
Member of the Board of Directors
Shares998
Max PriceUS$127.88
SellUS$803,64008 Apr 19
Gregory Merk
EntityIndividual
Role
Executive Vice President
Shares5,860
Max PriceUS$137.14
SellUS$45,85708 Apr 19
Gina Beredo
EntityIndividual
Role
Executive VP
Shares700
Max PriceUS$137.26
SellUS$741,57002 Apr 19
James DeVries
EntityIndividual
Role
Executive Vice President of Continuous Improvement
Shares7,500
Max PriceUS$134.76
SellUS$1,039,64621 Mar 19
Shelly Peet
EntityIndividual
Role
Executive Vice President of Human Resources & Information Systems
Shares11,600
Max PriceUS$133.18
SellUS$3,699,25511 Mar 19
John Keane
EntityIndividual
Role
Executive Vice President
Shares43,900
Max PriceUS$133.30
SellUS$551,92006 Mar 19
Michael Hilton
EntityIndividual
Role
President
Member of the Board of Directors
Shares4,000
Max PriceUS$137.98
SellUS$606,15414 Jan 19
Gregory Thaxton
EntityIndividual
Role
Executive VP & CFO
Shares4,949
Max PriceUS$122.48
SellUS$1,012,05004 Jan 19
Gregory Thaxton
EntityIndividual
Role
Executive VP & CFO
Shares11,250
Max PriceUS$117.22
SellUS$504,35804 Jan 19
Michael Hilton
EntityIndividual
Role
President
Member of the Board of Directors
Shares4,330
Max PriceUS$116.48
SellUS$433,84819 Sep 18
Mary Puma
EntityIndividual
Role
Member of the Board of Directors
Shares2,983
Max PriceUS$145.44

Ownership Breakdown


Management Team

  • Gina Beredo (44yo)

    Executive VP

    • Tenure: 1.6yrs
  • Jim DeVries (60yo)

    Executive Vice President of Continuous Improvement

    • Tenure: 1.4yrs
  • Greg Merk (48yo)

    Executive Vice President

    • Tenure: 6.5yrs
    • Compensation: $1.53m
  • Mike Hilton (65yo)

    President

    • Tenure: 9.5yrs
    • Compensation: $7.00m
  • Jeff Pembroke (52yo)

    Executive Vice President

    • Tenure: 4.5yrs
    • Compensation: $1.55m
  • Anne Pombier

    Vice President of Corporate Development

    • Tenure: 9.5yrs
  • Shelly Peet (54yo)

    Executive Vice President of Human Resources & Information Systems

    • Tenure: 15.8yrs
  • Lara Mahoney

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 1.3yrs
  • Greg Thaxton (58yo)

    Executive VP & CFO

    • Tenure: 11.5yrs
    • Compensation: $1.96m
  • John Keane (58yo)

    Executive Vice President

    • Tenure: 7.5yrs
    • Compensation: $1.85m

Board Members

  • Joe Keithley (70yo)

    Director

    • Tenure: 18.0yrs
    • Compensation: $289.28k
  • Art George (57yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: $218.11k
  • Mike Hilton (65yo)

    President

    • Tenure: 9.5yrs
    • Compensation: $7.00m
  • Randy Carson (68yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: $221.08k
  • Frank Jaehnert (62yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: $221.35k
  • Lee Banks (56yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: $211.29k
  • Mary Puma (61yo)

    Independent Director

    • Tenure: 18.0yrs
    • Compensation: $219.36k
  • Vic Richey (62yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: $232.33k
  • Mike Merriman (63yo)

    Chairman

    • Tenure: 1.4yrs
    • Compensation: $288.01k

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$7.900b
  • Shares outstanding: 57.45m
  • Website: Click here

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 Analysis2019/07/22 01:55
End of Day Share Price2019/07/19 00:00
Earnings2019/04/30
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.