Nordson (NDSN) AI Stock Analysis

• Market Cap: $12.75B
• Dividend Yield: 1.39%
• Average Volume (3M): 354.83K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.14
• Revenue Growth: 4.49%
• EPS Growth: -3.33%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.73
• Shares Outstanding: 56,186,302
• 10 Day Avg. Volume: 305,422
• 30 Day Avg. Volume: 354,829
• 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: 1.12
• Enterprise Value/Revenue: 5.11
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: 17.35
• 1Y Price Target: $260.40
• Price Target Upside: 14.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $254.00 ▲(11.89% 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

Revenue Growth

The 12% sales growth indicates strong demand and effective market strategies, particularly in Advanced Technology Solutions, supporting long-term revenue expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, crucial for sustainable growth.

Successful Acquisition

The successful integration of Atrion enhances Nordson's product offerings and market reach, strengthening competitive positioning and future earnings potential.

Negative Factors

Rising Debt Levels

Higher debt levels can strain cash flow and limit financial flexibility, impacting long-term stability. Managing leverage is crucial for maintaining financial health.

Weakness in Polymer Processing Systems

Continued weakness in polymer processing systems could hinder overall growth, necessitating strategic adjustments to address market challenges.

Higher Non-Operating Expenses

Rising non-operating expenses, including interest costs, could pressure profitability, requiring careful cost management to sustain margins.

Nordson Business Overview & Revenue Model

Company Description

Nordson Corporation (NDSN) is a global leader in precision technology, specializing in the development and manufacturing of equipment and systems used in various industrial applications including adhesives, coatings, sealants, and surface treatments. The company operates across multiple sectors such as packaging, electronics, medical, and construction, providing innovative solutions that enhance product performance and manufacturing efficiency. Nordson's core products include dispensing systems, surface treatment equipment, and testing and inspection systems, which are integral to enhancing product quality and production processes in diverse industries.

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: 227.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 227 is above the 20-day moving average (MA) of 224.38, above the 50-day MA of 219.72, and above the 200-day MA of 209.69, indicating a bullish trend. The MACD of 1.35 indicates Positive momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.27 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	13.79B	27.79	20.24%	0.78%	6.69%	21.44%
PNR	76 Outperform	17.99B	29.98	16.59%	0.89%	-0.25%	-7.32%
NDSN	75 Outperform	$12.75B	27.85	15.59%	1.39%	4.49%	-3.33%
IEX	71 Outperform	12.15B	26.04	11.70%	1.74%	4.73%	-19.15%
GGG	67 Neutral	14.04B	30.04	19.30%	1.27%	0.75%	-2.74%
RRX	64 Neutral	9.55B	38.26	3.74%	0.97%	-7.88%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.