NORDSON CORP (NDSN) Stock Fundamental Analysis
NASDAQ:NDSN - Nasdaq - US6556631025 - Common Stock - Currency: USD
NDSN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. NDSN scores excellent on profitability, but 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.
In the past year NDSN had a positive cash flow from operations.
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
The Return On Assets of NDSN (7.70%) is better than 69.53% of its industry peers.
NDSN has a Return On Equity of 15.73%. This is in the better half of the industry: NDSN outperforms 74.22% of its industry peers.
The Return On Invested Capital of NDSN (9.68%) is better than 67.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NDSN is above the industry average of 10.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 15.73% | ||
| ROIC | 9.68% |
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 16.93%. This is amongst the best in the industry. NDSN outperforms 93.75% of its industry peers.
NDSN's Profit Margin has improved in the last couple of years.
NDSN's Operating Margin of 24.53% is amongst the best of the industry. NDSN outperforms 96.09% 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 55.15%, NDSN belongs to the best of the industry, outperforming 95.31% 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 | 24.53% | ||
| PM (TTM) | 16.93% | ||
| GM | 55.15% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NDSN is creating some value.
The number of shares outstanding for NDSN has been increased compared to 1 year ago.
Compared to 5 years ago, NDSN has less shares outstanding
Compared to 1 year ago, NDSN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.17 indicates that NDSN is not in any danger for bankruptcy at the moment.
NDSN has a better Altman-Z score (4.17) than 71.09% of its industry peers.
The Debt to FCF ratio of NDSN is 4.74, which is a neutral value as it means it would take NDSN, 4.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.74, NDSN is in line with its industry, outperforming 53.91% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that NDSN is somewhat dependend on debt financing.
NDSN has a worse Debt to Equity ratio (0.73) than 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 4.17 |
ROIC/WACC1
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.53 indicates that NDSN has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.53, NDSN is doing good in the industry, outperforming 64.06% of the companies in the same industry.
A Quick Ratio of 1.56 indicates that NDSN should not have too much problems paying its short term obligations.
NDSN has a Quick ratio of 1.56. This is in the better half of the industry: NDSN outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.34%.
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 0.78% 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)3.34%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%-6.79%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%-2.81%
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.
Based on estimates for the next years, NDSN will show a small growth in Revenue. The Revenue will grow by 7.54% on average per year.
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
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.
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
Based on the Price/Earnings ratio of 20.24, the valuation of NDSN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NDSN is on the same level as its industry peers.
NDSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
With a Price/Forward Earnings ratio of 18.00, 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 20.42. NDSN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NDSN.
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 | 23.77 | ||
| EV/EBITDA | 16.15 |
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)6.33
PEG (5Y)1.9
EPS Next 2Y5.21%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
NDSN has a Yearly Dividend Yield of 1.64%.
NDSN's Dividend Yield is a higher than the industry average which is at 2.02.
NDSN's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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.
NDSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.76%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
36.96% 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.
DP36.96%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
194.1
+4.81 (+2.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.65%
Inst Owner Change1.97%
Ins Owners0.27%
Ins Owner Change1.23%
Market Cap11.05B
Analysts75
Price Target247.81 (27.67%)
Short Float %2.36%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend2.83
Dividend Growth(5Y)14.76%
DP36.96%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-3.19%
Max EPS beat(2)5.19%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-3.19%
Max EPS beat(4)5.19%
EPS beat(8)5
Avg EPS beat(8)1.73%
EPS beat(12)8
Avg EPS beat(12)1.48%
EPS beat(16)11
Avg EPS beat(16)3.29%
Revenue beat(2)0
Avg Revenue beat(2)-3.25%
Min Revenue beat(2)-5.61%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-5.61%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.84%
Revenue beat(16)3
Avg Revenue beat(16)-1.14%
PT rev (1m)-3.91%
PT rev (3m)-5.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 18 | ||
| P/S | 4.13 | ||
| P/FCF | 23.77 | ||
| P/OCF | 20.34 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.15 |
EPS(TTM)9.59
EY4.94%
EPS(NY)10.78
Fwd EY5.55%
FCF(TTM)8.17
FCFY4.21%
OCF(TTM)9.54
OCFY4.92%
SpS46.95
BVpS50.55
TBVpS-18.81
PEG (NY)6.33
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 15.73% | ||
| ROCE | 12.17% | ||
| ROIC | 9.68% | ||
| ROICexc | 9.92% | ||
| ROICexgc | 39.78% | ||
| OM | 24.53% | ||
| PM (TTM) | 16.93% | ||
| GM | 55.15% | ||
| FCFM | 17.39% |
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-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.74 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 56.05% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.28% | ||
| Profit Quality | 102.72% | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 4.17 |
F-Score6
WACC9.7%
ROIC/WACC1
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)3.34%
EPS 3Y7.96%
EPS 5Y10.66%
EPS Q2Q%-6.79%
EPS Next Y3.19%
EPS Next 2Y5.21%
EPS Next 3Y7.01%
EPS Next 5Y9.44%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y4.43%
Revenue growth 5Y4.16%
Sales Q2Q%-2.81%
Revenue Next Year2.92%
Revenue Next 2Y3.89%
Revenue Next 3Y4.62%
Revenue Next 5Y7.54%
EBIT growth 1Y-4.72%
EBIT growth 3Y3.1%
EBIT growth 5Y6.89%
EBIT Next Year22.39%
EBIT Next 3Y12.12%
EBIT Next 5Y11.37%
FCF growth 1Y-1.15%
FCF growth 3Y-1.05%
FCF growth 5Y9.06%
OCF growth 1Y4.76%
OCF growth 3Y0.62%
OCF growth 5Y7.75%