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

Acceptable track record with mediocre 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


Market Performance


7 Day Return

2.7%

NDSN

2.5%

US Machinery

0.5%

US Market


1 Year Return

19.5%

NDSN

8.6%

US Machinery

6.8%

US Market

Return vs Industry: NDSN exceeded the US Machinery industry which returned 8.6% over the past year.

Return vs Market: NDSN exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

NDSNIndustryMarket
7 Day2.7%2.5%0.5%
30 Day2.1%1.6%-0.8%
90 Day6.1%-0.6%-0.9%
1 Year20.8%19.5%10.9%8.6%9.2%6.8%
3 Year50.5%46.1%49.9%40.2%45.6%36.2%
5 Year109.7%98.5%57.8%38.6%63.2%45.4%

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?

3.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NDSN ($146.77) is trading below our estimate of fair value ($152.21)

Significantly Below Fair Value: NDSN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NDSN is poor value based on its PE Ratio (26.3x) compared to the Machinery industry average (20.1x).

PE vs Market: NDSN is poor value based on its PE Ratio (26.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NDSN is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: NDSN is overvalued based on its PB Ratio (5.5x) 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 9 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDSN's forecast earnings growth (11.7% per year) is above the savings rate (2.7%).

Earnings vs Market: NDSN's earnings (11.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: NDSN's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NDSN's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NDSN's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: NDSN's earnings have grown by 10.1% 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 (-13.3%) over the past year, making it difficult to compare to the Machinery industry average (17.5%).


Return on Equity

High ROE: NDSN's Return on Equity (20.8%) is considered high.


Return on Assets

ROA vs Industry: NDSN has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: NDSN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nordson's financial position?


Financial Position Analysis

Short Term Liabilities: NDSN's short term assets ($980.7M) exceeds its short term liabilities ($444.2M)

Long Term Liabilities: NDSN's short term assets (980.7M) do not cover its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: NDSN's debt to equity ratio (86.6%) is considered high

Reducing Debt: NDSN's debt to equity ratio has increased from 65.2% to 86.6% over the past 5 years.

Debt Coverage: NDSN's debt is well covered by operating cash flow (29.7%).

Interest Coverage: NDSN's interest payments on its debt are well covered by EBIT (9.8x 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 0.7x debt).


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NDSN's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NDSN's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 reasonably low payout ratio (25.1%), NDSN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Naga Nagarajan (56yo)

0.2yrs

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

5.8yrs

Average Tenure

55yo

Average Age

Experienced Management: NDSN's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

62yo

Average Age

Experienced Board: NDSN's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: NDSN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
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: 16.1yrs
  • John Keane (58yo)

    Executive Vice President

    • Tenure: 7.8yrs
    • Compensation: US$1.85m
  • Greg Thaxton (58yo)

    Executive VP & CFO

    • Tenure: 11.8yrs
    • Compensation: US$1.96m
  • Jeff Pembroke (52yo)

    Executive Vice President

    • Tenure: 4.8yrs
    • Compensation: US$1.55m
  • Mike Hilton (65yo)

    Senior Advisor

    • Tenure: 9.8yrs
    • Compensation: US$7.00m
  • Greg Merk (48yo)

    Executive Vice President

    • Tenure: 6.8yrs
    • Compensation: US$1.53m
  • Lara Mahoney

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 1.5yrs
  • Anne Pombier

    Vice President of Corporate Development

    • Tenure: 9.8yrs
  • Naga Nagarajan (56yo)

    President & CEO

    • Tenure: 0.2yrs
  • Gina Beredo (44yo)

    Executive VP

    • Tenure: 1.8yrs

Board Members

  • Frank Jaehnert (62yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$221.35k
  • Vic Richey (62yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$232.33k
  • Joe Keithley (70yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$289.28k
  • Mike Merriman (63yo)

    Independent Chairman

    • Tenure: 1.7yrs
    • Compensation: US$288.01k
  • Mary Puma (61yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$219.36k
  • Randy Carson (68yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$221.08k
  • Lee Banks (56yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$211.29k
  • Mike Hilton (65yo)

    Senior Advisor

    • Tenure: 9.8yrs
    • Compensation: US$7.00m
  • Art George (57yo)

    Independent Director

    • Tenure: 7.7yrs
    • 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$8.438b
  • 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 Analysis2019/10/20 23:41
End of Day Share Price2019/10/18 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.