NORDSON CORP (NDSN) Stock Fundamental Analysis
USA - NASDAQ:NDSN - US6556631025 - Common Stock
234.77 USD
+2.16 (+0.93%)
234.77 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NDSN. NDSN was compared to 130 industry peers in the Machinery industry. While NDSN has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, NDSN is valued expensive at the moment.
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 7.57%, NDSN is doing good in the industry, outperforming 70.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.26%, NDSN is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.48%, NDSN is doing good in the industry, outperforming 74.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NDSN is above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 15.26% | ||
| ROIC | 10.48% |
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
NDSN has a Profit Margin of 16.34%. This is amongst the best in the industry. NDSN outperforms 91.54% of its industry peers.
NDSN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.73%, NDSN belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
In the last couple of years the Operating Margin of NDSN has grown nicely.
With an excellent Gross Margin value of 54.56%, NDSN belongs to the best of the industry, outperforming 95.38% 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 | 24.73% | ||
| PM (TTM) | 16.34% | ||
| GM | 54.56% |
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.
Compared to 1 year ago, NDSN has more shares outstanding
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
NDSN has an Altman-Z score of 4.59. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NDSN (4.59) is better than 73.08% of its industry peers.
The Debt to FCF ratio of NDSN is 4.30, which is a neutral value as it means it would take NDSN, 4.30 years of fcf income to pay off all of its debts.
NDSN has a Debt to FCF ratio (4.30) which is comparable to the rest of the industry.
NDSN has a Debt/Equity ratio of 0.60. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
NDSN has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: NDSN underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 4.59 |
ROIC/WACC1.13
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.69 indicates that NDSN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.69, NDSN is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
A Quick Ratio of 1.11 indicates that NDSN should not have too much problems paying its short term obligations.
NDSN has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.05% over the past year.
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.
Looking at the last year, NDSN shows a small growth in Revenue. The Revenue has grown by 4.49% in the last year.
Measured over the past years, NDSN shows a small growth in Revenue. The Revenue has been growing by 4.16% on average per year.
EPS 1Y (TTM)6.05%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%13.28%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y6.13%
EPS Next 2Y7.73%
EPS Next 3Y8.12%
EPS Next 5Y9.47%
Revenue Next Year4.38%
Revenue Next 2Y4.41%
Revenue Next 3Y4.94%
Revenue Next 5Y7.78%
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
The Price/Earnings ratio is 23.50, which indicates a rather expensive current valuation of NDSN.
NDSN's Price/Earnings is on the same level as the industry average.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.77, which indicates a rather expensive current valuation of NDSN.
NDSN's Price/Forward Earnings is on the same level as the industry average.
NDSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 20.77 |
4.2 Price Multiples
NDSN's Enterprise Value to EBITDA is on the same level as the industry average.
NDSN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.57 | ||
| EV/EBITDA | 17.98 |
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)3.84
PEG (5Y)2.2
EPS Next 2Y7.73%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.85, NDSN pays a bit more dividend than its industry peers.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
NDSN pays out 39.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of NDSN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.04%
EPS Next 2Y7.73%
EPS Next 3Y8.12%
234.77
+2.16 (+0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change-0.88%
Ins Owners0.28%
Ins Owner Change0.2%
Market Cap13.19B
Revenue(TTM)2.78B
Net Income(TTM)455.01M
Analysts75.56
Price Target262.57 (11.84%)
Short Float %2.41%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP39.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.01%
Min EPS beat(2)0.53%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)1.01%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.43%
EPS beat(12)8
Avg EPS beat(12)1.3%
EPS beat(16)11
Avg EPS beat(16)0.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)0.54%
Revenue beat(8)1
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.55%
Revenue beat(16)2
Avg Revenue beat(16)-1.79%
PT rev (1m)0.39%
PT rev (3m)2.75%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 20.77 | ||
| P/S | 4.74 | ||
| P/FCF | 26.57 | ||
| P/OCF | 23.31 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.98 |
EPS(TTM)9.99
EY4.26%
EPS(NY)11.3
Fwd EY4.81%
FCF(TTM)8.83
FCFY3.76%
OCF(TTM)10.07
OCFY4.29%
SpS49.55
BVpS53.07
TBVpS-18.2
PEG (NY)3.84
PEG (5Y)2.2
Graham Number109.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 15.26% | ||
| ROCE | 13.17% | ||
| ROIC | 10.48% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 50.96% | ||
| OM | 24.73% | ||
| PM (TTM) | 16.34% | ||
| GM | 54.56% | ||
| FCFM | 17.83% |
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%
ROICexgc growth 3Y-7.15%
ROICexgc 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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 46.73% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.58% | ||
| Profit Quality | 109.1% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.59 |
F-Score4
WACC9.31%
ROIC/WACC1.13
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)6.05%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%13.28%
EPS Next Y6.13%
EPS Next 2Y7.73%
EPS Next 3Y8.12%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
Revenue Next Year4.38%
Revenue Next 2Y4.41%
Revenue Next 3Y4.94%
Revenue Next 5Y7.78%
EBIT growth 1Y1.24%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year25.98%
EBIT Next 3Y12.27%
EBIT Next 5Y11.42%
FCF growth 1Y-19.32%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-13.12%
OCF growth 3Y0.62%
OCF growth 5Y7.75%
NORDSON CORP / NDSN FAQ
Can you provide the ChartMill fundamental rating for NORDSON CORP?
ChartMill assigns a fundamental rating of 5 / 10 to NDSN.
What is the valuation status of NORDSON CORP (NDSN) stock?
ChartMill assigns a valuation rating of 3 / 10 to NORDSON CORP (NDSN). This can be considered as Overvalued.
What is the profitability of NDSN stock?
NORDSON CORP (NDSN) has a profitability rating of 8 / 10.
What is the expected EPS growth for NORDSON CORP (NDSN) stock?
The Earnings per Share (EPS) of NORDSON CORP (NDSN) is expected to grow by 6.13% in the next year.
Can you provide the dividend sustainability for NDSN stock?
The dividend rating of NORDSON CORP (NDSN) is 5 / 10 and the dividend payout ratio is 39.04%.