tiprankstipranks
Trending News
More News >
Nordson Corp (NDSN)
NASDAQ:NDSN

Nordson (NDSN) AI Stock Analysis

Compare
337 Followers

Top Page

ND

Nordson

(NASDAQ:NDSN)

Rating:78Outperform
Price Target:
$238.00
▲(12.10%Upside)
Nordson's overall stock score reflects its strong financial performance and positive earnings call highlights, including record EBITDA margins and strategic advancements. This is tempered by its relatively high valuation, suggesting potential caution. Positive technical indicators add to a favorable short-term outlook.
Positive Factors
Investment Opportunities
Management notes investment by ATS customers have become significant and rapid, offering opportunity for NDSN to benefit.
Technological Positioning
NDSN is positioned at the leading edge of technology, adapting Electronic Processing Systems and Test & Inspection capabilities in partnership with semiconductor customers.
Valuation
Despite recent share price declines, NDSN's valuation is at the low end of its historical range, presenting a positive risk/reward scenario.
Negative Factors
Foreign Exchange Impact
Foreign exchange has moved unfavorably, with the strengthening U.S. dollar presenting a headwind to sales and earnings forecasts.
Market Demand
The upper end of guidance will prove challenging to achieve without an inflection in end market demand and we see fewer catalysts in the near term for top-line acceleration.
Order Visibility and Guidance
Lowering 2025 EPS estimates due to lack of early 2025 order visibility, especially in the Industrial Precision Solutions segment.

Nordson (NDSN) vs. SPDR S&P 500 ETF (SPY)

Nordson Business Overview & Revenue Model

Company DescriptionNordson Corporation (NDSN) is a global leader in the engineering, manufacturing, and marketing of differentiated products and systems used for precision dispensing, fluid management, and related processes. The company serves a diverse range of sectors, including packaging, electronics, medical, and industrial markets. With innovative solutions, Nordson enables its customers to improve productivity and enhance product performance.
How the Company Makes MoneyNordson Corporation generates revenue through the sale of its high-performance machinery and systems that are crucial in various production processes. Its key revenue streams include the dispensing systems for adhesives, coatings, sealants, biomaterials, and other fluids used in manufacturing. Nordson also earns money from the aftermarket support services, including parts, repairs, and maintenance contracts, which ensure the longevity and optimal performance of its equipment. Moreover, strategic partnerships with leading companies in high-growth industries and continuous investment in research and development contribute significantly to its earnings by allowing Nordson to innovate and meet the evolving needs of its customers.

Nordson Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q2-2025)
|
% Change Since: 8.47%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in Advanced Technology Solutions and successful integration of the Atrion acquisition, driving record EBITDA margins. However, challenges remain in Industrial Precision Solutions and medical interventional product lines. Overall, the company's strategic actions and positive order trends suggest a cautiously optimistic outlook.
Q2-2025 Updates
Positive Updates
Record-Breaking EBITDA Margins
Operational excellence during the quarter drove strong profit performance resulting in 32% overall EBITDA margins, driven by operational execution in core businesses and strong contribution from the Atrion acquisition.
Advanced Technology Solutions Growth
Advanced Technology Solutions sales were $161 million, an 18% increase compared to the prior year, driven by broad-based demand in electronics dispense, optical, and x-ray inspection systems.
Successful Atrion Integration
Atrion integration is going well with results performing above valuation model expectations, contributing $51 million in revenue during the quarter.
Strong Share Repurchase Activity
Nordson executed a balanced capital deployment strategy, buying back $85 million in shares during the quarter and $141 million year-to-date.
Positive Order Entry Trends
Positive order entry momentum in electronics, precision agriculture, and select medical product lines resulted in a healthy backlog increase of 5% since last quarter.
Negative Updates
Decline in Industrial Precision Solutions
Industrial Precision Solution sales of $319 million decreased 8% compared to the prior year, driven by weaker system sales in industrial coatings and polymer processing product lines.
Medical Contract Manufacturing Challenges
Medical and Fluid Solutions experienced double-digit declines in medical interventional product lines, reflecting continued destocking trends in interventional products.
Higher Debt Levels
Net interest expense increased by $7 million versus the prior year due to higher debt levels tied to the Atrion acquisition.
Company Guidance
During Nordson Corporation's fiscal 2025 second quarter conference call, the company provided guidance for the third quarter. Nordson expects sales to range between $710 million and $750 million, with adjusted earnings forecasted to be between $2.55 and $2.75 per diluted share. The second quarter saw sales of $683 million, a 5% increase from the previous year, driven by an 8% contribution from the Atrion acquisition, despite a 2% organic sales decrease and less than 1% unfavorable currency impact. The EBITDA margin was 32%, with net income totaling $112 million or $1.97 per share. Adjusted earnings per share were $2.42, marking a 3% increase from the prior year. The company maintained a leverage ratio of 2.4 times EBITDA and executed $85 million in share buybacks, alongside $44 million in dividends paid.

Nordson Financial Statement Overview

Summary
Nordson displays a strong financial position with solid profitability, evidenced by a Gross Profit Margin of 55.1% and a Net Profit Margin of 16.9%. The company maintains efficient cash flow management, although revenue growth has slightly decelerated. Balance sheet metrics remain stable with a manageable Debt-to-Equity Ratio of 0.76.
Income Statement
82
Very Positive
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.
Balance Sheet
74
Positive
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.
Cash Flow
79
Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.67B2.69B2.63B2.59B2.36B2.12B
Gross Profit
1.47B1.49B1.43B1.43B1.32B1.13B
EBIT
655.51M674.00M672.76M702.36M615.13M349.55M
EBITDA
797.34M810.58M786.74M771.62M703.55M446.95M
Net Income Common Stockholders
452.36M467.28M487.49M513.10M454.37M249.54M
Balance SheetCash, Cash Equivalents and Short-Term Investments
130.42M115.95M115.68M163.46M299.97M208.29M
Total Assets
5.87B6.00B5.25B3.82B3.79B3.67B
Total Debt
2.30B2.32B1.86B737.86M815.90M1.11B
Net Debt
2.16B2.20B1.75B574.40M515.92M897.70M
Total Liabilities
2.99B3.07B2.65B1.53B1.63B1.92B
Stockholders Equity
2.88B2.93B2.60B2.29B2.16B1.76B
Cash FlowFree Cash Flow
464.68M491.78M606.70M461.70M507.62M451.89M
Operating Cash Flow
542.96M556.19M641.28M513.13M545.93M502.42M
Investing Cash Flow
-852.95M-844.40M-1.44B-222.76M-33.17M-194.11M
Financing Cash Flow
307.40M294.50M750.51M-416.01M-422.91M-251.53M

Nordson Technical Analysis

Technical Analysis Sentiment
Positive
Last Price212.31
Price Trends
50DMA
193.92
Positive
100DMA
203.11
Positive
200DMA
223.97
Negative
Market Momentum
MACD
4.76
Negative
RSI
66.58
Neutral
STOCH
79.11
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 212.31 is above the 20-day moving average (MA) of 201.71, above the 50-day MA of 193.92, and below the 200-day MA of 223.97, indicating a neutral trend. The MACD of 4.76 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 79.11 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITITT
82
Outperform
$11.77B23.7919.27%0.87%6.99%23.25%
PNPNR
78
Outperform
$16.21B25.4118.59%0.97%-0.42%3.23%
78
Outperform
$11.99B27.2915.54%1.42%1.98%-7.66%
GGGGG
74
Outperform
$14.11B29.7920.28%1.25%-0.40%-2.50%
IEIEX
74
Outperform
$13.54B28.3812.73%1.55%1.66%-17.18%
RRRRX
72
Outperform
$8.74B37.543.69%1.06%-10.19%
65
Neutral
$4.44B12.225.28%248.14%4.08%-12.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NDSN
Nordson
213.21
-12.84
-5.68%
GGG
Graco
84.29
6.28
8.05%
IEX
IDEX
182.04
-22.69
-11.08%
ITT
ITT
150.80
22.60
17.63%
PNR
Pentair
99.83
20.41
25.70%
RRX
Regal Rexnord
136.30
-5.00
-3.54%

Nordson Corporate Events

Business Operations and StrategyFinancial Disclosures
Nordson Reports Strong Q2 2025 Financial Results
Positive
May 28, 2025

Nordson Corporation reported its fiscal second quarter 2025 results, highlighting a 5% year-over-year sales increase to $683 million, driven by strong performance in electronics systems and steady growth in nonwovens systems, precision agriculture, and medical fluid components. Despite a decrease in industrial systems sales, the company achieved an EBITDA of 32% of sales, reflecting operational excellence. The Atrion acquisition exceeded expectations, contributing to the growth. Looking ahead, Nordson anticipates third-quarter sales between $710 to $750 million, supported by strong order entry and backlog, aligning with their full-year guidance.

The most recent analyst rating on (NDSN) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on Nordson stock, see the NDSN Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Nordson Announces Leadership Transition in Medical Segment
Positive
Apr 29, 2025

On April 28, 2025, Nordson Corporation announced a leadership transition in its Medical and Fluid Solutions segment, with Justin Hall promoted to Executive Vice President and segment leader, succeeding Stephen Lovass. Hall, who joined Nordson in 2006, has a strong track record and expertise in deploying the NBS Next growth framework, positioning the company for organic growth in multiple end markets. The transition aims to capitalize on market opportunities in the medical sector, which is driven by long-term growth factors such as an aging population and increasing healthcare spending.

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.