Nordson (NDSN) AI Stock Analysis

• Market Cap: $12.64B
• Dividend Yield: 1.39%
• Average Volume (3M): 365.83K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.15
• Revenue Growth: 4.49%
• EPS Growth: -3.33%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 2.73
• Shares Outstanding: 56,186,302
• 10 Day Avg. Volume: 339,202
• 30 Day Avg. Volume: 365,829
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 5.11
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: 17.35
• 1Y Price Target: $257.29
• Price Target Upside: 14.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $254.00 ▲(12.87% Upside)

Nordson's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a positive trend, while the valuation suggests potential overvaluation. The company's strategic initiatives and robust cash flow generation further enhance its outlook.

Positive Factors

Financial Performance

NDSN results came in above expectations on stronger operating results.

Growth Opportunities

Management notes investment by ATS customers have become significant and rapid, offering opportunity for NDSN to benefit.

Negative Factors

Market Challenges

Questions around the M&A flywheel and cyclical headwinds in medical and semi have caused the stock to lag recently.

Sector Performance

Industrial Coatings and Polymer Processing within IPS remain laggards, influenced by the automotive sector.

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 specialized equipment and systems across various markets. The company's revenue model is supported by several key streams, including the direct sales of equipment, ongoing maintenance and service contracts, and the sales of consumables associated with its systems. Additionally, Nordson benefits from recurring revenue through its aftermarket services and parts, which provide customers with necessary supplies and support for their operations. Strategic partnerships with major manufacturers and integration of advanced technologies further enhance Nordson's market position and contribute to its earnings by allowing the company to offer comprehensive solutions that meet evolving customer needs.

Nordson Financial Statement Overview

Summary

Nordson demonstrates strong financial health with consistent profitability and efficient operations. The company maintains a stable capital structure, though rising leverage warrants attention. Cash flow generation is robust, supporting ongoing operations and growth. Continued focus on managing debt levels and sustaining profit margins will be crucial for future stability.

Income Statement

Nordson's income statement reflects strong profitability with a consistent gross profit margin around 54-56% and a net profit margin of 16-19% over the years. The revenue growth rate has been positive, albeit modest, indicating steady growth. EBIT and EBITDA margins are healthy, suggesting efficient operations. However, the slight decline in net income in the TTM period compared to the previous year indicates potential pressure on profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. Return on equity remains strong, reflecting effective use of equity to generate profits. The equity ratio suggests a stable capital structure, but the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, particularly in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, fluctuations in free cash flow growth in previous years highlight potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	2.69B	2.63B	2.59B	2.36B	2.12B
Gross Profit	1.52B	1.49B	1.43B	1.43B	1.32B	1.13B
EBITDA	819.76M	810.58M	786.74M	771.62M	703.55M	446.95M
Net Income	455.01M	467.28M	487.49M	513.10M	454.37M	249.54M
Balance Sheet
Total Assets	6.01B	6.00B	5.25B	3.82B	3.79B	3.67B
Cash, Cash Equivalents and Short-Term Investments	147.79M	115.95M	115.68M	163.46M	299.97M	208.29M
Total Debt	2.22B	2.32B	1.86B	737.86M	815.90M	1.11B
Total Liabilities	3.03B	3.07B	2.65B	1.53B	1.63B	1.92B
Stockholders Equity	2.98B	2.93B	2.60B	2.29B	2.16B	1.76B
Cash Flow
Free Cash Flow	543.02M	491.78M	606.70M	461.70M	507.62M	451.89M
Operating Cash Flow	612.64M	556.19M	641.28M	513.13M	545.93M	502.42M
Investing Cash Flow	-854.24M	-844.40M	-1.44B	-222.76M	-33.17M	-194.11M
Financing Cash Flow	220.58M	294.50M	750.51M	-416.01M	-422.91M	-251.53M

Nordson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 225.03
• 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 225.03 is above the 20-day moving average (MA) of 220.26, above the 50-day MA of 218.48, and above the 200-day MA of 212.60, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 45.21 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
ITT	79 Outperform	$13.33B	26.86	20.17%	0.80%	6.69%	21.44%
GGG	78 Outperform	$14.23B	30.45	19.62%	1.26%	0.75%	-2.74%
GNRC	77 Outperform	$10.64B	30.11	14.59%	―	9.69%	54.29%
NDSN	75 Outperform	$12.64B	28.29	15.59%	1.39%	4.49%	-3.33%
CR	72 Outperform	$10.60B	34.77	18.23%	0.49%	3.01%	27.13%
IEX	71 Outperform	$12.42B	26.62	12.25%	1.70%	4.73%	-19.15%
Sector *	64 Neutral	$10.73B	15.74	7.63%	2.01%	2.75%	-15.09%

Nordson Corporate Events

Nordson Announces $500 Million Share Repurchase Plan

On August 18, 2025, Nordson Corporation announced a new $500 million share repurchase authorization, bringing the total authorization to approximately $793 million. This decision reflects the company’s robust financial performance in the third quarter of fiscal 2025, where sales increased by 12% year-over-year to $742 million, and adjusted earnings per share rose by 13%. The company also reported strong cash flow conversion and maintained a solid balance sheet, enabling investments in growth and shareholder returns. Nordson’s Advanced Technology Solutions segment showed significant organic growth, contributing to the overall positive results. The company affirmed its full-year sales and earnings guidance, supported by its strategic initiatives and diverse product portfolio.

Nordson Appoints New Chief Accounting Officer

On July 14, 2025, Nordson Corporation appointed Joseph M. Rutledge as Vice President and Chief Accounting Officer, succeeding Stephen Shamrock who left the company on July 10, 2025. Rutledge, with extensive experience from Eaton Corporation, will oversee Nordson’s accounting operations and financial reporting, potentially strengthening the company’s financial management and operational efficiency.