NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - Nasdaq - US6556631025 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NDSN. NDSN was compared to 128 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
NDSN had positive earnings in the past year.
NDSN had a positive operating cash flow in the past year.
Each year in the past 5 years NDSN has been profitable.
NDSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.37%, NDSN is doing good in the industry, outperforming 67.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.08%, NDSN is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
The Return On Invested Capital of NDSN (9.40%) is better than 63.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NDSN is above the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.08% | ||
| ROIC | 9.4% |
ROA(3y)10.17%
ROA(5y)9.86%
ROE(3y)19.02%
ROE(5y)18.46%
ROIC(3y)13.32%
ROIC(5y)13.01%
1.3 Margins
The Profit Margin of NDSN (16.51%) is better than 91.41% of its industry peers.
NDSN's Profit Margin has improved in the last couple of years.
NDSN has a Operating Margin of 24.24%. This is amongst the best in the industry. NDSN outperforms 96.09% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
NDSN has a Gross Margin of 54.78%. This is amongst the best in the industry. NDSN outperforms 94.53% of its industry peers.
In the last couple of years the Gross Margin of NDSN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 16.51% | ||
| GM | 54.78% |
OM growth 3Y-1.27%
OM growth 5Y2.62%
PM growth 3Y-3.34%
PM growth 5Y2.49%
GM growth 3Y-0.48%
GM growth 5Y0.34%
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.
NDSN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NDSN has been reduced compared to 5 years ago.
The debt/assets ratio for NDSN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.29 indicates that NDSN is not in any danger for bankruptcy at the moment.
The Altman-Z score of NDSN (4.29) is better than 71.09% of its industry peers.
The Debt to FCF ratio of NDSN is 4.86, which is a neutral value as it means it would take NDSN, 4.86 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.86, NDSN perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
NDSN has a Debt/Equity ratio of 0.72. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
NDSN has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: NDSN underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.96
WACC9.77%
2.3 Liquidity
A Current Ratio of 2.56 indicates that NDSN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.56, NDSN is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
NDSN has a Quick Ratio of 1.64. 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 (1.64) is better than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.31%.
Measured over the past years, NDSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.66% on average per year.
The Revenue has been growing slightly by 1.98% in the past year.
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)3.31%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%3.42%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%4.96%
3.2 Future
NDSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.51% yearly.
Based on estimates for the next years, NDSN will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y4.9%
EPS Next 2Y6.97%
EPS Next 3Y8.04%
EPS Next 5Y9.51%
Revenue Next Year3.95%
Revenue Next 2Y4.47%
Revenue Next 3Y5.34%
Revenue Next 5Y7.5%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.67, which indicates a rather expensive current valuation of NDSN.
Compared to the rest of the industry, the Price/Earnings ratio of NDSN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.35, NDSN is valued at the same level.
A Price/Forward Earnings ratio of 18.80 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 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NDSN indicates a slightly more expensive valuation: NDSN is more expensive than 60.94% of the companies listed in the same industry.
NDSN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.95 | ||
| EV/EBITDA | 17.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NDSN does not grow enough to justify the current Price/Earnings ratio.
NDSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.42
PEG (5Y)2.03
EPS Next 2Y6.97%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.93, NDSN pays a bit more dividend than its industry peers.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of NDSN grows each year by 14.76%, which is quite nice.
NDSN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
38.65% of the earnings are spent on dividend by NDSN. This is a low number and sustainable payout ratio.
The dividend of NDSN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.65%
EPS Next 2Y6.97%
EPS Next 3Y8.04%
209.55
-3.98 (-1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.28%
Inst Owner Change1.67%
Ins Owners0.27%
Ins Owner Change-0.66%
Market Cap11.93B
Analysts77.5
Price Target253.5 (20.97%)
Short Float %2.67%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP38.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-3.19%
Max EPS beat(2)0.53%
EPS beat(4)3
Avg EPS beat(4)0.94%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)8
Avg EPS beat(12)1.18%
EPS beat(16)11
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.14%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)-0.67%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)1
Avg Revenue beat(12)-1.62%
Revenue beat(16)2
Avg Revenue beat(16)-1.52%
PT rev (1m)2.3%
PT rev (3m)-1.3%
EPS NQ rev (1m)2.14%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)1.65%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 18.8 | ||
| P/S | 4.41 | ||
| P/FCF | 25.95 | ||
| P/OCF | 22.1 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.53 |
EPS(TTM)9.67
EY4.61%
EPS(NY)11.15
Fwd EY5.32%
FCF(TTM)8.08
FCFY3.85%
OCF(TTM)9.48
OCFY4.52%
SpS47.52
BVpS52.02
TBVpS-18.73
PEG (NY)4.42
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.08% | ||
| ROCE | 11.82% | ||
| ROIC | 9.4% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 37.53% | ||
| OM | 24.24% | ||
| PM (TTM) | 16.51% | ||
| GM | 54.78% | ||
| FCFM | 16.99% |
ROA(3y)10.17%
ROA(5y)9.86%
ROE(3y)19.02%
ROE(5y)18.46%
ROIC(3y)13.32%
ROIC(5y)13.01%
ROICexc(3y)13.85%
ROICexc(5y)13.76%
ROICexgc(3y)56.67%
ROICexgc(5y)51.11%
ROCE(3y)16.75%
ROCE(5y)16.36%
ROICexcg growth 3Y-7.15%
ROICexcg growth 5Y-2.87%
ROICexc growth 3Y-14.59%
ROICexc growth 5Y-5.54%
OM growth 3Y-1.27%
OM growth 5Y2.62%
PM growth 3Y-3.34%
PM growth 5Y2.49%
GM growth 3Y-0.48%
GM growth 5Y0.34%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 55.32% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.43% | ||
| Profit Quality | 102.92% | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.29 |
F-Score5
WACC9.77%
ROIC/WACC0.96
Cap/Depr(3y)43.22%
Cap/Depr(5y)42.22%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.94%
Profit Quality(3y)106.56%
Profit Quality(5y)122.5%
High Growth Momentum
Growth
EPS 1Y (TTM)3.31%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%3.42%
EPS Next Y4.9%
EPS Next 2Y6.97%
EPS Next 3Y8.04%
EPS Next 5Y9.51%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%4.96%
Revenue Next Year3.95%
Revenue Next 2Y4.47%
Revenue Next 3Y5.34%
Revenue Next 5Y7.5%
EBIT growth 1Y-4.16%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year21.69%
EBIT Next 3Y11.64%
EBIT Next 5Y11.24%
FCF growth 1Y-15.61%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-8.01%
OCF growth 3Y0.62%
OCF growth 5Y7.75%