NORDSON CORP (NDSN)
US6556631025 - Common Stock
Taking everything into account, NDSN scores 6 out of 10 in our fundamental rating. NDSN was compared to 132 industry peers in the Machinery industry. While NDSN has a great profitability rating, there are some minor concerns on its financial health. NDSN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NDSN was profitable.
NDSN had a positive operating cash flow in the past year.
In the past 5 years NDSN has always been profitable.
Each year in the past 5 years NDSN had a positive operating cash flow.
1.2 Ratios
NDSN has a Return On Assets of 9.39%. This is in the better half of the industry: NDSN outperforms 74.42% of its industry peers.
NDSN's Return On Equity of 18.09% is fine compared to the rest of the industry. NDSN outperforms 77.52% of its industry peers.
With a decent Return On Invested Capital value of 11.59%, NDSN is doing good in the industry, outperforming 73.64% of the companies in the same industry.
NDSN had an Average Return On Invested Capital over the past 3 years of 14.85%. This is above the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 18.09% | ||
| ROIC | 11.59% |
ROA(3y)11.57%
ROA(5y)10.22%
ROE(3y)20.72%
ROE(5y)19.54%
ROIC(3y)14.85%
ROIC(5y)13.52%
1.3 Margins
With an excellent Profit Margin value of 18.59%, NDSN belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
NDSN's Profit Margin has improved in the last couple of years.
NDSN has a Operating Margin of 25.95%. This is amongst the best in the industry. NDSN outperforms 98.45% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
Looking at the Gross Margin, with a value of 54.50%, NDSN belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
NDSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.95% | ||
| PM (TTM) | 18.59% | ||
| GM | 54.5% |
OM growth 3Y7.51%
OM growth 5Y2.8%
PM growth 3Y16.39%
PM growth 5Y2.07%
GM growth 3Y0.58%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
NDSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NDSN has less shares outstanding
NDSN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NDSN has a worse debt to assets ratio.
2.2 Solvency
NDSN has an Altman-Z score of 5.72. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NDSN (5.72) is better than 79.07% of its industry peers.
The Debt to FCF ratio of NDSN is 2.51, which is a good value as it means it would take NDSN, 2.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.51, NDSN is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
NDSN has a Debt/Equity ratio of 0.56. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
NDSN's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. NDSN outperforms 43.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.27
WACC9.1%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NDSN has no problem at all paying its short term obligations.
NDSN's Current ratio of 2.19 is in line compared to the rest of the industry. NDSN outperforms 51.16% of its industry peers.
NDSN has a Quick Ratio of 1.37. This is a normal value and indicates that NDSN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NDSN (1.37) is better than 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
NDSN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.32%.
The Earnings Per Share has been growing by 8.68% on average over the past years. This is quite good.
Looking at the last year, NDSN shows a small growth in Revenue. The Revenue has grown by 2.31% in the last year.
Measured over the past years, NDSN shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
EPS 1Y (TTM)-0.32%
EPS 3Y18.07%
EPS 5Y8.68%
EPS growth Q2Q13.33%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y7.41%
Revenue growth 5Y3.12%
Revenue growth Q2Q3.72%
3.2 Future
Based on estimates for the next years, NDSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
NDSN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.67% yearly.
EPS Next Y15.83%
EPS Next 2Y12.63%
EPS Next 3Y11.46%
EPS Next 5Y9.84%
Revenue Next Year5.73%
Revenue Next 2Y5.36%
Revenue Next 3Y5.61%
Revenue Next 5Y8.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NDSN is valuated quite expensively with a Price/Earnings ratio of 28.32.
60.47% of the companies in the same industry are cheaper than NDSN, based on the Price/Earnings ratio.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.97 indicates a rather expensive valuation of NDSN.
The rest of the industry has a similar Price/Forward Earnings ratio as NDSN.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDSN is valued a bit more expensive than 65.89% of the companies in the same industry.
63.57% of the companies in the same industry are more expensive than NDSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.86 | ||
| EV/EBITDA | 20.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NDSN may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)3.26
EPS Next 2Y12.63%
EPS Next 3Y11.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, NDSN has a reasonable but not impressive dividend return.
NDSN's Dividend Yield is a higher than the industry average which is at 1.73.
With a Dividend Yield of 1.05, NDSN pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of NDSN grows each year by 15.84%, which is quite nice.
NDSN has paid a dividend for at least 10 years, which is a reliable track record.
NDSN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.84%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
30.84% of the earnings are spent on dividend by NDSN. This is a low number and sustainable payout ratio.
NDSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.84%
EPS Next 2Y12.63%
EPS Next 3Y11.46%
NORDSON CORP
NASDAQ:NDSN (5/2/2024, 7:09:25 PM)
After market: 262.8 0 (0%)262.8
+1.85 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 22.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.79
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 18.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.95% | ||
| PM (TTM) | 18.59% | ||
| GM | 54.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.32%
EPS 3Y18.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.31%
Revenue growth 3Y7.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y