NORDSON CORP (NDSN) Stock Fundamental Analysis
USA - NASDAQ:NDSN - US6556631025 - Common Stock
232 USD
+0.15 (+0.06%)
232 USD
0 (0%)
Taking everything into account, NDSN scores 5 out of 10 in our fundamental rating. NDSN was compared to 129 industry peers in the Machinery industry. While NDSN has a great profitability rating, there are some minor 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.
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
With a decent Return On Assets value of 7.57%, NDSN is doing good in the industry, outperforming 71.32% of the companies in the same industry.
NDSN has a Return On Equity of 15.26%. This is in the better half of the industry: NDSN outperforms 75.97% of its industry peers.
NDSN has a better Return On Invested Capital (10.48%) than 74.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NDSN is above the industry average of 10.01%.
| 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
Looking at the Profit Margin, with a value of 16.34%, NDSN belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
In the last couple of years the Profit Margin of NDSN has grown nicely.
With an excellent Operating Margin value of 24.73%, NDSN belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
In the last couple of years the Operating Margin of NDSN has grown nicely.
NDSN's Gross Margin of 54.56% is amongst the best of the industry. NDSN outperforms 95.35% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NDSN is still creating some value.
NDSN has more shares outstanding than it did 1 year ago.
NDSN has less shares outstanding than it did 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 4.58. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, NDSN is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
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's Debt to FCF ratio of 4.30 is in line compared to the rest of the industry. NDSN outperforms 58.91% of its industry peers.
NDSN has a Debt/Equity ratio of 0.60. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
The Debt to Equity ratio of NDSN (0.60) is worse than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.13
WACC9.27%
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.
Looking at the Current ratio, with a value of 1.69, NDSN is doing worse than 62.79% of the companies in the same industry.
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.
NDSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.66% yearly.
The Revenue has been growing slightly by 4.49% in the past year.
NDSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.16% yearly.
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.
NDSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.78% yearly.
EPS Next Y6.17%
EPS Next 2Y7.64%
EPS Next 3Y7.92%
EPS Next 5Y9.47%
Revenue Next Year4.49%
Revenue Next 2Y4.54%
Revenue Next 3Y5%
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.
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
NDSN is valuated rather expensively with a Price/Earnings ratio of 23.22.
The rest of the industry has a similar Price/Earnings ratio as NDSN.
Compared to an average S&P500 Price/Earnings ratio of 27.31, NDSN is valued at the same level.
With a Price/Forward Earnings ratio of 20.56, NDSN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NDSN is on the same level as its industry peers.
NDSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
NDSN's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 26.26 | ||
| EV/EBITDA | 17.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NDSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.76
PEG (5Y)2.18
EPS Next 2Y7.64%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.40%.
Compared to an average industry Dividend Yield of 1.81, NDSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, NDSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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.
NDSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.04%
EPS Next 2Y7.64%
EPS Next 3Y7.92%
232
+0.15 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.25%
Inst Owner Change0.02%
Ins Owners0.28%
Ins Owner Change-0.09%
Market Cap13.04B
Analysts75.56
Price Target261.55 (12.74%)
Short Float %2.66%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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%
PT rev (3m)3.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0.95%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 20.56 | ||
| P/S | 4.68 | ||
| P/FCF | 26.26 | ||
| P/OCF | 23.03 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.93 |
EPS(TTM)9.99
EY4.31%
EPS(NY)11.29
Fwd EY4.86%
FCF(TTM)8.83
FCFY3.81%
OCF(TTM)10.07
OCFY4.34%
SpS49.55
BVpS53.07
TBVpS-18.2
PEG (NY)3.76
PEG (5Y)2.18
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%
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 | 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 | 4.58 |
F-Score4
WACC9.27%
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 Y6.17%
EPS Next 2Y7.64%
EPS Next 3Y7.92%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%12.08%
Revenue Next Year4.49%
Revenue Next 2Y4.54%
Revenue Next 3Y5%
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%