273.28 USD
+1.97 (+0.73%)
273.28 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NDSN. NDSN was compared to 132 industry peers in the Machinery industry. NDSN scores excellent on profitability, but 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.
- 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
- The Return On Assets of NDSN (8.19%) is better than 75.76% of its industry peers.
- The Return On Equity of NDSN (15.92%) is better than 75.76% of its industry peers.
- NDSN's Return On Invested Capital of 11.29% is fine compared to the rest of the industry. NDSN outperforms 78.03% of its industry peers.
- NDSN had an Average Return On Invested Capital over the past 3 years of 10.94%. This is in line with the industry average of 10.24%.
- The last Return On Invested Capital (11.29%) for NDSN is above the 3 year average (10.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 15.92% | ||
| ROIC | 11.29% |
ROA(3y)8.42%
ROA(5y)10.13%
ROE(3y)16.87%
ROE(5y)18.81%
ROIC(3y)10.94%
ROIC(5y)13.31%
1.3 Margins
- NDSN's Profit Margin of 17.35% is amongst the best of the industry. NDSN outperforms 93.18% of its industry peers.
- In the last couple of years the Profit Margin of NDSN has grown nicely.
- NDSN's Operating Margin of 25.94% is amongst the best of the industry. NDSN outperforms 97.73% of its industry peers.
- NDSN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 55.16%, NDSN belongs to the top of the industry, outperforming 95.45% 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 | 25.94% | ||
| PM (TTM) | 17.35% | ||
| GM | 55.16% |
OM growth 3Y-1.36%
OM growth 5Y4.79%
PM growth 3Y-4.31%
PM growth 5Y8.09%
GM growth 3Y0.05%
GM growth 5Y0.69%
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 less shares outstanding than it did 1 year ago.
- The number of shares outstanding for NDSN has been reduced compared to 5 years ago.
- Compared to 1 year ago, NDSN has an improved debt to assets ratio.
2.2 Solvency
- NDSN has an Altman-Z score of 5.24. This indicates that NDSN is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of NDSN (5.24) is better than 73.48% of its industry peers.
- The Debt to FCF ratio of NDSN is 3.04, which is a good value as it means it would take NDSN, 3.04 years of fcf income to pay off all of its debts.
- NDSN has a better Debt to FCF ratio (3.04) than 68.94% of its industry peers.
- NDSN has a Debt/Equity ratio of 0.56. This is a neutral value indicating NDSN is somewhat dependend on debt financing.
- The Debt to Equity ratio of NDSN (0.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.2
WACC9.43%
2.3 Liquidity
- A Current Ratio of 1.64 indicates that NDSN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.64, NDSN is not doing good in the industry: 67.42% of the companies in the same industry are doing better.
- NDSN has a Quick Ratio of 1.05. 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 Quick ratio, with a value of 1.05, NDSN is doing worse than 62.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- NDSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.13%.
- Measured over the past years, NDSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.32% on average per year.
- NDSN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.78%.
- NDSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.65% yearly.
EPS 1Y (TTM)5.13%
EPS 3Y2.78%
EPS 5Y13.32%
EPS Q2Q%8.99%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y2.53%
Revenue growth 5Y5.65%
Sales Q2Q%0.99%
3.2 Future
- Based on estimates for the next years, NDSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.84% on average per year.
- The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y12.26%
EPS Next 2Y9.95%
EPS Next 3Y9.49%
EPS Next 5Y9.84%
Revenue Next Year3.82%
Revenue Next 2Y4.37%
Revenue Next 3Y5.27%
Revenue Next 5Y7.62%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 quite expensively with a Price/Earnings ratio of 26.69.
- Compared to the rest of the industry, the Price/Earnings ratio of NDSN is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of NDSN to the average of the S&P500 Index (27.25), we can say NDSN is valued inline with the index average.
- With a Price/Forward Earnings ratio of 23.77, 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.69 | ||
| Fwd PE | 23.77 |
4.2 Price Multiples
- NDSN's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, NDSN is valued a bit cheaper than the industry average as 62.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.23 | ||
| EV/EBITDA | 19.6 |
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)2.18
PEG (5Y)2
EPS Next 2Y9.95%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- NDSN has a Yearly Dividend Yield of 1.20%.
- Compared to an average industry Dividend Yield of 1.01, NDSN pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, NDSN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
- On average, the dividend of NDSN grows each year by 15.71%, which is quite nice.
- NDSN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- NDSN pays out 36.96% 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.
DP36.96%
EPS Next 2Y9.95%
EPS Next 3Y9.49%
NORDSON CORP / NDSN FAQ
Can you provide the ChartMill fundamental rating for NORDSON CORP?
ChartMill assigns a fundamental rating of 6 / 10 to NDSN.
What is the valuation status for NDSN stock?
ChartMill assigns a valuation rating of 3 / 10 to NORDSON CORP (NDSN). This can be considered as Overvalued.
Can you provide the profitability details for NORDSON CORP?
NORDSON CORP (NDSN) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for NDSN stock?
The Price/Earnings (PE) ratio for NORDSON CORP (NDSN) is 26.69 and the Price/Book (PB) ratio is 5.05.
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 12.26% in the next year.