Nordson (NDSN) AI Stock Analysis

• Market Cap: $10.06B
• Dividend Yield: 1.71%
• Average Volume (3M): 354.47K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.12
• Revenue Growth: 0.78%
• EPS Growth: -8.42%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 63
• Industry: Industrial - Machinery
• EPS (TTM): 7.85
• Shares Outstanding: 56,911,740
• 10 Day Avg. Volume: 338,894
• 30 Day Avg. Volume: 354,474
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.34
• Price to Cash Flow (P/CF): 18.20
• P/FCF Ratio: 18.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $250.00
• Price Target Upside: 46.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Nordson maintains a strong financial position with solid profitability and efficient cash flow management. Despite some sales challenges, the company shows resilience through strong order growth and strategic acquisitions. Technical indicators suggest consolidation, and valuation is somewhat elevated. Overall, while there are short-term pressures, Nordson's long-term prospects remain positive.

Positive Factors

Analyst Recommendation

Analyst is upgrading NDSN to Overweight, highlighting it as an opportune time to invest due to accelerating orders across the business, especially in Electronics.

Mergers and Acquisitions

Mergers and acquisitions are expected to add additional upside, with significant free cash flow available for strategic acquisitions.

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 Growth

End-market commentary suggests growth is likely muted in F2025, and we see limited catalysts for reacceleration until F26 (possibly F2H25).

Order Visibility

Lowering 2025 EPS estimates due to lack of early 2025 order visibility, especially in the Industrial Precision Solutions segment.

Nordson Business Overview & Revenue Model

Company Description

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products. It also offers automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.

How the Company Makes Money

Nordson 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 170.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDSN, the sentiment is Negative. The current price of 170.8 is below the 20-day moving average (MA) of 200.95, below the 50-day MA of 209.04, and below the 200-day MA of 231.96, indicating a bearish trend. The MACD of -2.52 indicates Positive momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NDSN.

Nordson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	78 Outperform	$9.18B	17.90	19.60%	1.16%	10.59%	27.04%
NDSN	73 Outperform	$10.06B	22.50	16.15%	1.71%	0.78%	-8.42%
GGG	73 Outperform	$12.74B	26.87	20.22%	1.37%	-3.75%	-4.27%
PNR	73 Outperform	$12.99B	21.04	18.45%	1.19%	-0.53%	0.13%
IEX	67 Neutral	$12.28B	24.42	13.77%	1.70%	-0.16%	-15.42%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%
RRX	56 Neutral	$6.56B	33.61	3.11%	1.42%	-3.47%	―

Nordson Corporate Events

Nordson Projects Growth Despite Q1 Sales Decline

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.