Nordson (NDSN) AI Stock Analysis

• Market Cap: $10.83B
• Dividend Yield: 1.59%
• Average Volume (3M): 408.09K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.10
• Revenue Growth: 0.78%
• EPS Growth: -8.42%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 7.85
• Shares Outstanding: 56,911,740
• 10 Day Avg. Volume: 325,307
• 30 Day Avg. Volume: 408,086
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.98
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $230.00
• Price Target Upside: 20.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Nordson's overall score reflects its solid financial health and operational efficiency, offset by bearish technical indicators and mixed earnings call results. The company's valuation is reasonable, with a stable dividend yield providing some support. Recent corporate events indicate strategic positioning in growth areas.

Positive Factors

Growth Prospects

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.

Investment Opportunity

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

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

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

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 (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 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 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.69B	2.63B	2.59B	2.36B	2.12B
	Gross Profit
1.49B	1.43B	1.43B	1.32B	1.13B
	EBIT
674.00M	672.76M	702.36M	615.13M	349.55M
	EBITDA
674.00M	786.74M	771.62M	703.55M	446.95M
	Net Income Common Stockholders
467.28M	487.49M	513.10M	454.37M	249.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.95M	115.68M	163.46M	299.97M	208.29M
	Total Assets
6.00B	5.25B	3.82B	3.79B	3.67B
	Total Debt
2.32B	1.86B	737.86M	815.90M	1.11B
	Net Debt
2.20B	1.75B	574.40M	515.92M	897.70M
	Total Liabilities
3.07B	2.65B	1.53B	1.63B	1.92B
	Stockholders Equity
814.42M	2.60B	2.29B	2.16B	1.76B
Cash Flow		Free Cash Flow
491.78M	606.70M	461.70M	507.62M	451.89M
	Operating Cash Flow
556.19M	641.28M	513.13M	545.93M	502.42M
	Investing Cash Flow
-844.40M	-1.44B	-222.76M	-33.17M	-194.11M
	Financing Cash Flow
294.50M	750.51M	-416.01M	-422.91M	-251.53M

Nordson Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 190.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDSN, the sentiment is Neutral. The current price of 190.36 is above the 20-day moving average (MA) of 183.22, below the 50-day MA of 197.90, and below the 200-day MA of 228.23, indicating a neutral trend. The MACD of -2.36 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 85.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NDSN.

Nordson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	79 Outperform	$11.17B	21.91	19.60%	0.95%	10.59%	27.04%
PNR	77 Outperform	$14.93B	23.40	18.59%	1.04%	-0.42%	3.23%
IEX	74 Outperform	$13.24B	26.34	13.77%	1.59%	-0.16%	-15.42%
GGG	73 Outperform	$13.65B	28.82	20.28%	1.27%	-0.40%	-2.50%
NDSN	71 Outperform	$10.83B	24.24	16.15%	1.59%	0.78%	-8.42%
RRX	66 Neutral	$7.12B	36.48	3.11%	1.32%	-3.47%	―
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%

Nordson Corporate Events

Nordson Announces Leadership Transition in Medical Segment

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.

Spark’s Take on NDSN Stock

According to Spark, TipRanks’ AI Analyst, NDSN is a Outperform.

Nordson demonstrates solid financial performance with strong profitability and cash flow management, though revenue growth has decelerated. Despite technical indicators showing bearish market momentum, the company’s valuation remains reasonable. The recent earnings call provided a mixed outlook, with a focus on operational strengths and order backlog growth but challenges in key segments. Overall, Nordson is well-positioned in the industrial machinery sector, balancing strong financial health with strategic growth initiatives.

To see Spark’s full report on NDSN stock, click here.

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.