Nordson (NDSN) AI Stock Analysis

• Market Cap: $13.28B
• Dividend Yield: 1.67%
• Average Volume (3M): 406.65K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.11
• Revenue Growth: 3.78%
• EPS Growth: 4.85%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.03
• Shares Outstanding: 56,186,302
• 10 Day Avg. Volume: 630,582
• 30 Day Avg. Volume: 406,647
• PEG Ratio: 5.68
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 4.70
• P/FCF Ratio: 19.86
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 5.34
• Enterprise Value/Gross Profit: 9.67
• Enterprise Value/Ebitda: 17.19
• 1Y Price Target: $279.00
• Price Target Upside: 17.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $272.00 ▲(14.25% Upside)

Nordson's strong financial performance and positive earnings call guidance are the most significant factors driving the score. Technical analysis supports a moderate bullish outlook, while valuation suggests the stock is priced at a premium. The company's strategic initiatives and robust cash flow further bolster its position, despite some challenges in specific segments.

Positive Factors

Strong Cash Flow Generation

Robust cash flow supports strategic initiatives like share repurchases and debt reduction, enhancing financial flexibility and shareholder value.

Successful Integration of Atrion Medical

Successful integration of acquisitions like Atrion Medical can drive revenue and earnings growth, strengthening market position and operational capabilities.

Record EBITDA and Margin

High EBITDA and margins indicate efficient operations and strong profitability, supporting sustainable growth and competitive advantage.

Negative Factors

Organic Sales Decline

Declining organic sales suggest challenges in maintaining growth momentum, potentially impacting future revenue and market share.

High Debt Levels

High debt levels can strain financial resources, limiting flexibility and increasing risk, especially in volatile market conditions.

Weakness in Advanced Technology Solutions

Weakness in key segments like advanced technology solutions may hinder growth prospects and affect overall business performance.

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 generates revenue primarily through the sale of its advanced equipment and systems, which are utilized in a wide range of industrial applications. Key revenue streams include the sale of dispensing equipment, surface treatment solutions, and other manufacturing technologies. The company also earns income from service contracts and aftermarket parts, which provide ongoing support and maintenance for its products. Significant partnerships with leading companies in various industries enhance Nordson's market reach and foster innovation, while its focus on R&D helps in developing new technologies that meet evolving customer needs. Additionally, Nordson's global presence allows it to tap into diverse markets, contributing to its overall revenue growth.

Nordson Financial Statement Overview

Summary

Nordson exhibits strong financial health with consistent revenue and profit growth, efficient operations, and effective cash management. The balance sheet is solid, though high debt levels require monitoring. Overall, the company is well-managed with potential for continued growth despite some leverage and cost pressure risks.

Income Statement

Nordson's income statement reflects strong profitability with consistent gross and net profit margins over the years. The company has demonstrated solid revenue growth, particularly in the most recent year with a 26.4% increase. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has improved from previous years, indicating better leverage management. Return on equity remains strong, reflecting effective use of shareholder funds. The equity ratio is stable, suggesting a solid financial foundation. However, the total debt level is relatively high, which could pose risks if not managed carefully.

Cash Flow

Nordson's cash flow statement highlights robust free cash flow growth in the latest year, recovering from a decline in the previous period. The operating cash flow to net income ratio is close to 1, indicating good cash conversion from profits. The free cash flow to net income ratio is also strong, suggesting efficient cash management. Nonetheless, fluctuations in free cash flow growth rates indicate potential volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.79B	2.69B	2.63B	2.59B	2.36B
Gross Profit	1.54B	1.49B	1.43B	1.43B	1.32B
EBITDA	711.73M	810.58M	786.74M	771.62M	703.55M
Net Income	484.47M	467.28M	487.49M	513.10M	454.37M
Balance Sheet
Total Assets	5.06B	6.00B	5.25B	3.82B	3.79B
Cash, Cash Equivalents and Short-Term Investments	108.44M	115.95M	115.68M	163.46M	299.97M
Total Debt	2.00B	2.32B	1.86B	860.45M	951.55M
Total Liabilities	2.87B	3.07B	2.65B	1.53B	1.63B
Stockholders Equity	3.04B	2.93B	2.60B	2.29B	2.16B
Cash Flow
Free Cash Flow	661.12M	491.78M	606.70M	461.70M	507.62M
Operating Cash Flow	719.17M	556.19M	641.28M	513.13M	545.93M
Investing Cash Flow	-26.69M	-844.40M	-1.44B	-222.76M	-33.17M
Financing Cash Flow	-706.43M	294.50M	750.51M	-416.01M	-422.91M

Nordson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 238.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 238.07 is above the 20-day moving average (MA) of 234.72, above the 50-day MA of 233.18, and above the 200-day MA of 214.64, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 27.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDSN.

Nordson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDSN	79 Outperform	$13.28B	27.78	16.21%	1.67%	3.78%	4.85%
GGG	78 Outperform	$13.71B	28.27	19.45%	1.32%	2.85%	3.09%
IEX	75 Outperform	$13.26B	28.01	12.21%	1.60%	7.09%	-2.29%
ITT	72 Outperform	$15.06B	29.09	17.85%	0.82%	8.01%	2.67%
CR	71 Outperform	$10.80B	33.89	18.09%	0.50%	-0.37%	21.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.12B	27.56	12.38%	―	5.52%	9.03%

Nordson Corporate Events

Nordson Reports Record Q4 and Fiscal 2025 Results

Nordson Corporation reported record results for the fourth quarter and fiscal year 2025, with sales reaching $752 million in the fourth quarter and $2.8 billion for the full year, marking a 1% and 4% increase respectively over the prior year. The company achieved a 9% increase in adjusted earnings per share for the fourth quarter and a 5% increase for the full year, reflecting strong operational performance despite challenges such as the divestiture of its medical contract manufacturing business. Looking ahead to fiscal 2026, Nordson forecasts sales between $2,830 to $2,950 million and adjusted earnings per share ranging from $10.80 to $11.50, driven by its strategic growth framework and strong backlog.

Nordson Approves New Executive Severance Policy

On October 23, 2025, Nordson Corporation’s Board of Directors approved a new Executive Severance Policy, effective November 1, 2025, to provide severance protections for U.S.-based executive officers in case of employment termination outside a change in control period. This policy outlines conditions under which executives can receive severance benefits, including a lump-sum payment and continued medical coverage, impacting the company’s operations by potentially enhancing executive retention and stability.