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Nordson Corp (NDSN)
NASDAQ:NDSN
Top Page
Nordson
(NASDAQ:NDSN)73Outperform
Positive Factors
Business Expansion
There is increased confidence in Nordson returning to organic growth for both the medical and advanced technology businesses, with ATS segment sales expected to improve as customers return to growth.
Valuation
NDSN is trading near its historical lows on a forward price-to-earnings basis, presenting a discount relative to major indices.
Negative Factors
Foreign Exchange
The strengthening U.S. dollar presents a headwind to sales and earnings forecasts.
Order Visibility
Lowering 2025 EPS estimates due to lack of early 2025 order visibility, especially in the Industrial Precision Solutions segment.
Nordson (NDSN) vs. S&P 500 (SPY)
Market Cap
$12.04B
Dividend Yield1.38%
Average Volume (3M)332.50K
Price to Earnings (P/E)26.9
Beta (1Y)1.08
Revenue Growth0.78%
EPS Growth-8.42%
CountryUS
Employees8,000
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)7.85
Shares Outstanding56,911,740
10 Day Avg. Volume395,346
30 Day Avg. Volume332,501
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.51
Price to Cash Flow (P/CF)18.90
P/FCF Ratio18.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$250.00Price Target Upside16.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Nordson Business Overview & Revenue Model
Company DescriptionNordson Corporation (NDSN) is a global leader in the precision technology sector, primarily focusing on manufacturing equipment used for dispensing adhesives, coatings, sealants, biomaterials, and other materials. Headquartered in Westlake, Ohio, Nordson serves diverse markets, including electronics, medical, consumer goods, packaging, and industrial sectors. The company's innovative solutions are designed to improve production efficiencies, enhance product performance, and support sustainability initiatives.
How the Company Makes MoneyNordson makes money by designing, manufacturing, and selling precision dispensing equipment and systems, which are utilized across a multitude of industries. The company's revenue model is centered around the sale of its equipment and related parts, but also includes a significant portion derived from after-market services such as equipment maintenance, repairs, and upgrades. Nordson has established long-term partnerships with key players in various sectors, ensuring a consistent demand for its products and services. Additionally, the company invests in research and development to maintain a competitive edge by continuously innovating and expanding its product offerings, which contributes to its revenue growth.
Nordson Financial Statement Overview
Summary
Nordson demonstrates solid profitability with a strong Gross Profit Margin of 55.1% and a Net Profit Margin of 16.9%. The balance sheet is stable with a manageable Debt-to-Equity Ratio of 0.76 and an impressive Return on Equity of 15.7%. Cash flow metrics show robust cash generation, despite a slight revenue growth deceleration.Income Statement
Nordson demonstrates solid profitability with a strong Gross Profit Margin of 55.1% and a Net Profit Margin of 16.9% in the TTM period. The company's EBIT Margin is healthy at 24.5%, and the EBITDA Margin is 28.4%. However, the revenue growth has slightly decelerated in the latest TTM, with a minor decline of 0.7% compared to the previous year.82
Very Positive
Balance Sheet
The balance sheet reveals a stable structure with a manageable Debt-to-Equity Ratio of 0.76, indicating a moderate level of leverage. Return on Equity is impressive at 15.7%, reflecting efficient use of equity capital. The Equity Ratio stands at 57.5%, suggesting a strong equity base relative to total assets.74
Positive
Cash Flow
The company's cash flow position is robust, with a Free Cash Flow to Net Income Ratio of 1.03, indicating effective cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 1.20, demonstrating efficient conversion of net income into cash. Despite a slight decrease in Free Cash Flow compared to the previous year, cash flow metrics remain healthy.79
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.67B | 2.69B | 2.63B | 2.59B | 2.36B | 2.12B | Gross Profit |
| 1.47B | 1.49B | 1.43B | 1.43B | 1.32B | 1.13B | EBIT |
| 655.51M | 674.00M | 672.76M | 702.36M | 615.13M | 349.55M | EBITDA |
| 797.34M | 674.00M | 786.74M | 771.62M | 703.55M | 446.95M | Net Income Common Stockholders |
| 452.36M | 467.28M | 487.49M | 513.10M | 454.37M | 249.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 130.42M | 115.95M | 115.68M | 163.46M | 299.97M | 208.29M | Total Assets |
| 5.87B | 6.00B | 5.25B | 3.82B | 3.79B | 3.67B | Total Debt |
| 2.30B | 2.32B | 1.86B | 737.86M | 815.90M | 1.11B | Net Debt |
| 2.16B | 2.20B | 1.75B | 574.40M | 515.92M | 897.70M | Total Liabilities |
| 2.99B | 3.07B | 2.65B | 1.53B | 1.63B | 1.92B | Stockholders Equity |
| 2.88B | 814.42M | 2.60B | 2.29B | 2.16B | 1.76B |
| Cash Flow | Free Cash Flow | ||||
| 464.68M | 491.78M | 606.70M | 461.70M | 507.62M | 451.89M | Operating Cash Flow |
| 542.96M | 556.19M | 641.28M | 513.13M | 545.93M | 502.42M | Investing Cash Flow |
| -852.95M | -844.40M | -1.44B | -222.76M | -33.17M | -194.11M | Financing Cash Flow |
| 307.40M | 294.50M | 750.51M | -416.01M | -422.91M | -251.53M |
Nordson Technical Analysis
Positive
215.31
Price Trends
213.22
Positive
231.24
Negative
235.98
Negative
Market Momentum
-1.72
Negative
52.24
Neutral
58.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDSN, the sentiment is Positive. The current price of 215.31 is above the 20-day moving average (MA) of 213.83, above the 50-day MA of 213.22, and below the 200-day MA of 235.98, indicating a neutral trend. The MACD of -1.72 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 58.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDSN.
Nordson Risk Analysis
Nordson disclosed 24 risk factors in its most recent earnings report. Nordson reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nordson Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $77.81B | 22.63 | 110.24% | 2.19% | -1.30% | 20.26% | |
77 Outperform | $25.53B | 9.57 | 24.30% | 1.10% | -2.99% | 159.26% | |
73 Outperform | $12.04B | 26.94 | 16.15% | 1.38% | 0.78% | -8.42% | |
72 Outperform | $42.68B | 31.22 | 14.97% | 0.61% | 5.22% | 4.46% | |
71 Outperform | $18.44B | 22.99 | 18.28% | 2.45% | 7.45% | 5.43% | |
69 Neutral | $30.74B | 33.83 | 26.22% | 1.88% | -11.28% | -23.69% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
NDSN
Nordson
215.31
-45.49
-17.44%
AME
Ametek
183.99
3.98
2.21%
DOV
Dover
185.64
16.53
9.77%
ITW
Illinois Tool Works
274.48
18.60
7.27%
PKG
Packaging
206.65
23.61
12.90%
ROK
Rockwell Automation
276.54
-3.02
-1.08%
Nordson Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -1.11% | Next Earnings Date: May 26, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong operational performance, notable achievements in order entry growth, and successful integration of the Atrion acquisition. However, these positives were offset by a decline in sales and challenges in key segments such as electronics and medical interventional product lines. The company remains confident in its ability to manage costs and capitalize on growth opportunities as demand improves.Highlights
Strong Operational Performance
Nordson's team delivered a 56% gross margin, 26% operating profit margin, and 31% EBITDA margin, with free cash flow conversion at nearly 150% of net income.
Order Entry and Backlog Growth
Order entry rates accelerated throughout the quarter, growing double digits above the prior year order entry run rate. The backlog increased by approximately $85 million, ending at approximately $670 million.
Atrion Acquisition Success
The Atrion acquisition delivered $53 million in revenue, with the integration ahead of initial targets for profitability improvements.
Industry Recognitions and Awards
Nordson's SpinSAM Acoustic Inspection system and QuadraPro manual X-ray System received multiple industry awards for innovation and performance.
Positive Outlook in Electronics
Despite a slow start, orders in the Advanced Technology Solutions segment were up double digits, with backlog growing sequentially.
Lowlights
Sales Decline in Key Segments
First quarter 2025 sales were $615 million, down 3% from the prior year. This was driven by a 9% organic sales decrease and a 2% unfavorable currency translation.
Weak Demand in Electronics and Industrial Markets
Soft demand in key end markets, particularly electronics and industrial, contributed to sales being at the low end of the guidance range.
Increased Interest Expenses
Net interest expense increased by $5 million versus the prior year due to higher debt levels tied to the Atrion acquisition.
Medical Interventional Product Line Challenges
Double-digit declines in medical interventional product lines due to destocking trends and strategic program rationalization impacted demand.
Advanced Technology Solutions Segment Decline
Advanced Technology Solutions sales were $121 million, an 11% decrease compared to the prior year first quarter, driven by declines in electronics processing and x-ray product lines.
Company Guidance
During the Nordson Corporation's first-quarter fiscal year 2025 conference call, the company reported sales of $615 million, which was at the low end of their guidance range due to weak demand in key markets such as electronics and industrial, and unfavorable foreign exchange rates. However, the company experienced positive order entry rates, which grew double digits from the previous year, resulting in an $85 million increase in backlog, ending at approximately $670 million. Despite weaker sales, Nordson achieved a gross margin of 56%, an operating profit margin of 26%, and an EBITDA margin of 31%. The company converted free cash flow at nearly 150% of net income and adjusted earnings per share were $2.06, slightly above the midpoint of their guidance. Nordson also repurchased $60 million in shares, paid $45 million in dividends, and reduced their net leverage ratio to 2.4x. For the second quarter of fiscal 2025, the company provided guidance for sales between $650 million to $690 million and adjusted earnings per share ranging from $2.30 to $2.50.Nordson Corporate Events
Business Operations and StrategyFinancial Disclosures
Nordson Projects Growth Despite Q1 Sales Decline
Neutral
Feb 19, 2025
Nordson Corporation reported its fiscal first quarter 2025 results on February 19, 2025, showing a sales decline of 2.8% year-over-year to $615 million, and a decrease in earnings per diluted share to $1.65. Despite weaker sales across multiple end markets, the company saw a 15% growth in backlog and maintained solid operational performance. The company forecasts second-quarter fiscal 2025 sales to range between $650 and $690 million, with adjusted earnings per share expected to be between $2.30 and $2.50, reflecting confidence in overcoming macroeconomic challenges and improving end market demand.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Nordson Corporation Reports Record Fiscal 2024 Sales
Positive
Dec 11, 2024
Nordson Corporation reported record fiscal 2024 sales of $2.7 billion, with a 2% growth driven by acquisitions and favorable currency impacts. The company’s Advanced Technology Solutions segment showed positive sales growth, and the recent Atrion Medical acquisition integration contributed positively to results. Looking ahead, Nordson forecasts fiscal 2025 sales to range between $2,750 and $2,870 million, with adjusted earnings per share expected between $9.70 and $10.50. The company is cautiously optimistic, considering the evolving global macro-environment, and plans to maintain operational excellence and strong cash flow through its diversified market focus and close-to-the-customer business model.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.