NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - Nasdaq - US6556631025 - Common Stock - Currency: USD
Overall NDSN gets a fundamental rating of 5 out of 10. We evaluated NDSN against 128 industry peers in the Machinery industry. While NDSN belongs to the best of the industry regarding profitability, 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
In the past year NDSN was profitable.
In the past year NDSN had a positive cash flow from operations.
In the past 5 years NDSN has always been profitable.
In the past 5 years NDSN always reported a positive cash flow from operatings.
1.2 Ratios
NDSN has a better Return On Assets (7.37%) than 67.19% of its industry peers.
NDSN has a Return On Equity of 15.08%. This is in the better half of the industry: NDSN outperforms 73.44% of its industry peers.
With a decent Return On Invested Capital value of 9.40%, NDSN is doing good in the industry, outperforming 64.06% 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 10.30%.
| 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
With an excellent Profit Margin value of 16.51%, NDSN belongs to the best of the industry, outperforming 91.41% of the companies in the same industry.
In the last couple of years the Profit Margin of NDSN has grown nicely.
The Operating Margin of NDSN (24.24%) is better than 96.09% of its industry peers.
In the last couple of years the Operating Margin of NDSN has grown nicely.
NDSN's Gross Margin of 54.78% is amongst the best of the industry. NDSN outperforms 94.53% of its industry peers.
NDSN's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, NDSN has less shares outstanding
The debt/assets ratio for NDSN is higher compared to a year ago.
2.2 Solvency
NDSN has a debt to FCF ratio of 4.82. This is a neutral value as NDSN would need 4.82 years to pay back of all of its debts.
NDSN has a Debt to FCF ratio (4.82) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.72 indicates that NDSN is somewhat dependend on debt financing.
NDSN has a worse Debt to Equity ratio (0.72) than 69.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC9.63%
2.3 Liquidity
A Current Ratio of 2.56 indicates that NDSN has no problem at all paying its short term obligations.
NDSN's Current ratio of 2.56 is fine compared to the rest of the industry. NDSN outperforms 67.97% of its industry peers.
A Quick Ratio of 1.64 indicates that NDSN should not have too much problems paying its short term obligations.
The Quick ratio of NDSN (1.64) is better than 68.75% 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%.
The Earnings Per Share has been growing by 10.66% on average over the past years. This is quite good.
NDSN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
NDSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.16% yearly.
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 9.44% yearly.
NDSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.
EPS Next Y3.19%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
EPS Next 5Y9.44%
Revenue Next Year2.92%
Revenue Next 2Y3.89%
Revenue Next 3Y4.62%
Revenue Next 5Y7.54%
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
A Price/Earnings ratio of 21.92 indicates a rather expensive valuation of NDSN.
The rest of the industry has a similar Price/Earnings ratio as NDSN.
Compared to an average S&P500 Price/Earnings ratio of 26.25, NDSN is valued at the same level.
With a Price/Forward Earnings ratio of 19.66, NDSN is valued on the expensive side.
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 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDSN is valued a bit more expensive than the industry average as 60.16% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NDSN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.25 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NDSN may justify a higher PE ratio.
PEG (NY)6.86
PEG (5Y)2.06
EPS Next 2Y5.21%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, NDSN has a reasonable but not impressive dividend return.
NDSN's Dividend Yield is a higher than the industry average which is at 1.90.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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 2Y5.21%
EPS Next 3Y7.01%
211.99
+3.02 (+1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.65%
Inst Owner Change1.67%
Ins Owners0.27%
Ins Owner Change1.42%
Market Cap12.06B
Analysts75
Price Target247.81 (16.9%)
Short Float %2.57%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)0%
PT rev (3m)-5.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 19.66 | ||
| P/S | 4.46 | ||
| P/FCF | 26.25 | ||
| P/OCF | 22.36 | ||
| P/B | 4.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.68 |
EPS(TTM)9.67
EY4.56%
EPS(NY)10.78
Fwd EY5.09%
FCF(TTM)8.08
FCFY3.81%
OCF(TTM)9.48
OCFY4.47%
SpS47.52
BVpS52.02
TBVpS-6.16
PEG (NY)6.86
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.08% | ||
| ROCE | 11.82% | ||
| ROIC | 9.4% | ||
| ROICexc | 9.63% | ||
| ROICexgc | 24.77% | ||
| 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 | 4.82 | ||
| Debt/EBITDA | 2.65 | ||
| 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 | N/A |
F-Score5
WACC9.63%
ROIC/WACC0.98
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 Y3.19%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
EPS Next 5Y9.44%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%4.96%
Revenue Next Year2.92%
Revenue Next 2Y3.89%
Revenue Next 3Y4.62%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.16%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year21.69%
EBIT Next 3Y11.64%
EBIT Next 5Y11.37%
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%