NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - US6556631025 - Common Stock
226.35 USD
+0.56 (+0.25%)
226.19 USD
-0.16 (-0.07%)
Overall NDSN gets a fundamental rating of 5 out of 10. We evaluated NDSN against 127 industry peers in the Machinery industry. While NDSN belongs to the best of the industry regarding profitability, there are concerns on its financial health. NDSN is quite expensive at the moment. 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.
NDSN had positive earnings in each of the past 5 years.
NDSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NDSN has a better Return On Assets (7.57%) than 68.50% of its industry peers.
Looking at the Return On Equity, with a value of 15.26%, NDSN is in the better half of the industry, outperforming 73.23% of the companies in the same industry.
NDSN's Return On Invested Capital of 10.48% is fine compared to the rest of the industry. NDSN outperforms 73.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NDSN is above the industry average of 10.48%.
| 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 88.98% of its industry peers.
NDSN's Profit Margin has improved in the last couple of years.
The Operating Margin of NDSN (24.73%) is better than 96.06% of its industry peers.
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 94.49% of the companies in the same industry.
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 | 24.73% | ||
| 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.
The number of shares outstanding for NDSN has been increased compared to 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
The Debt to FCF ratio of NDSN is 3.91, which is a good value as it means it would take NDSN, 3.91 years of fcf income to pay off all of its debts.
NDSN has a Debt to FCF ratio (3.91) 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.
With a Debt to Equity ratio value of 0.60, NDSN is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | N/A |
ROIC/WACC1.09
WACC9.65%
2.3 Liquidity
NDSN has a Current Ratio of 1.69. This is a normal value and indicates that NDSN is financially healthy and should not expect problems in meeting its short term obligations.
NDSN has a Current ratio of 1.69. This is in the lower half of the industry: NDSN underperforms 60.63% of its industry peers.
A Quick Ratio of 1.11 indicates that NDSN should not have too much problems paying its short term obligations.
The Quick ratio of NDSN (1.11) 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
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.05%.
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.
NDSN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.49%.
The Revenue has been growing slightly by 4.16% on average over the past years.
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
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.
NDSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y5.17%
EPS Next 2Y7.22%
EPS Next 3Y7.77%
EPS Next 5Y9.51%
Revenue Next Year3.95%
Revenue Next 2Y4.47%
Revenue Next 3Y5.11%
Revenue Next 5Y7.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 22.66 indicates a rather expensive valuation of NDSN.
The rest of the industry has a similar Price/Earnings ratio as NDSN.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.22, NDSN is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as NDSN.
The average S&P500 Price/Forward Earnings ratio is at 22.63. NDSN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 20.22 |
4.2 Price Multiples
NDSN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NDSN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 17.59 |
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)4.38
PEG (5Y)2.13
EPS Next 2Y7.22%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
NDSN's Dividend Yield is a higher than the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.34, NDSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of NDSN grows each year by 14.76%, which is quite nice.
NDSN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
39.04% 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.
DP39.04%
EPS Next 2Y7.22%
EPS Next 3Y7.77%
226.35
+0.56 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners78.53%
Inst Owner Change0.84%
Ins Owners0.27%
Ins Owner Change-0.1%
Market Cap12.79B
Analysts75.56
Price Target256.87 (13.48%)
Short Float %2.61%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)1.09%
Min EPS beat(2)0.53%
Max EPS beat(2)1.65%
EPS beat(4)3
Avg EPS beat(4)1.05%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)6
Avg EPS beat(8)1.45%
EPS beat(12)8
Avg EPS beat(12)1.31%
EPS beat(16)11
Avg EPS beat(16)0.9%
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)0.52%
PT rev (3m)3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.61%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 20.22 | ||
| P/S | 4.59 | ||
| P/FCF | 23.56 | ||
| P/OCF | 20.88 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.59 |
EPS(TTM)9.99
EY4.41%
EPS(NY)11.2
Fwd EY4.95%
FCF(TTM)9.61
FCFY4.25%
OCF(TTM)10.84
OCFY4.79%
SpS49.27
BVpS52.77
TBVpS-5.74
PEG (NY)4.38
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 15.26% | ||
| ROCE | 13.17% | ||
| ROIC | 10.48% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 30.89% | ||
| OM | 24.73% | ||
| PM (TTM) | 16.34% | ||
| GM | 54.56% | ||
| FCFM | 19.5% |
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-Score4
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 46.73% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.15% | ||
| Profit Quality | 119.34% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score4
WACC9.65%
ROIC/WACC1.09
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 Y5.17%
EPS Next 2Y7.22%
EPS Next 3Y7.77%
EPS Next 5Y9.51%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
Revenue Next Year3.95%
Revenue Next 2Y4.47%
Revenue Next 3Y5.11%
Revenue Next 5Y7.5%
EBIT growth 1Y1.24%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year23.91%
EBIT Next 3Y12.27%
EBIT Next 5Y11.24%
FCF growth 1Y-11.75%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y-5.96%
OCF growth 3Y0.62%
OCF growth 5Y7.75%