Nordson (NDSN) AI Stock Analysis

• Market Cap: $12.59B
• Dividend Yield: 1.4%
• Average Volume (3M): 476.85K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.15
• Revenue Growth: 1.98%
• EPS Growth: -7.66%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 2.42
• Shares Outstanding: 56,508,945
• 10 Day Avg. Volume: 555,132
• 30 Day Avg. Volume: 476,853
• PEG Ratio: -23.85
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.27
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 9.62
• Enterprise Value/Ebitda: 4.43
• 1Y Price Target: $253.13
• Price Target Upside: 13.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $242.00 ▲(8.63%Upside)

Nordson's overall stock score of 77 is driven by its strong financial performance and positive earnings call sentiment. The company's solid profitability, effective cost management, and strategic growth initiatives position it well within its industry. Technical analysis and valuation provide a more balanced view but do not significantly detract from the overall positive outlook.

Positive Factors

Growth Potential

NDSN is emerging from a challenging period with positive organic growth anticipated after eight quarters of negative performance.

Segment Performance

Encouragement is drawn from quarter-over-quarter improvement in the MFS and ATS segments, with expectations for ongoing company-wide improvements.

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

Cyclical Headwinds

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

Foreign Exchange Impact

The strengthening U.S. dollar presents a headwind to sales and earnings forecasts due to unfavorable foreign exchange movements.

Segment Challenges

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 Corporation generates revenue through the sale of its high-performance machinery and systems that are crucial in various production processes. Its key revenue streams include the dispensing systems for adhesives, coatings, sealants, biomaterials, and other fluids used in manufacturing. Nordson also earns money from the aftermarket support services, including parts, repairs, and maintenance contracts, which ensure the longevity and optimal performance of its equipment. Moreover, strategic partnerships with leading companies in high-growth industries and continuous investment in research and development contribute significantly to its earnings by allowing Nordson to innovate and meet the evolving needs of its customers.

Nordson Financial Statement Overview

Summary

Nordson demonstrates solid financial health with strong profitability, effective cost management, and robust cash flow generation. While experiencing moderate revenue growth and a slight increase in leverage, its consistent margins and operational efficiency position it well within the industrial machinery industry.

Income Statement

Nordson's income statement reflects strong profitability with a consistent gross profit margin of approximately 55% over recent periods. The net profit margin has been stable, around 16-18%, showcasing effective cost management. Revenue growth has been moderate, with a slight increase year-over-year. The company maintains healthy EBIT and EBITDA margins, indicating efficient operations within the industry.

Balance Sheet

The balance sheet presents a solid financial position with a relatively low debt-to-equity ratio, although it has increased due to higher total debt. Return on equity remains robust at around 15%, reflecting efficient use of equity. The equity ratio shows stability, indicating balanced leverage and asset management. However, the rising debt level is a point of caution.

Cash Flow

Cash flow analysis reveals strong operational cash generation, consistently exceeding net income, which highlights the company's ability to convert earnings into cash. Free cash flow has been positive and growing, supporting reinvestment and financial flexibility. Despite a slight decline in free cash flow growth recently, operational efficiency remains a strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.70B	2.69B	2.63B	2.59B	2.36B	2.12B
Gross Profit	1.48B	1.49B	1.43B	1.43B	1.32B	1.13B
EBITDA	798.15M	810.58M	786.74M	771.62M	703.55M	446.95M
Net Income	446.55M	467.28M	487.49M	513.10M	454.37M	249.54M
Balance Sheet
Total Assets	6.06B	6.00B	5.25B	3.82B	3.79B	3.67B
Cash, Cash Equivalents and Short-Term Investments	130.16M	115.95M	115.68M	163.46M	299.97M	208.29M
Total Debt	2.32B	2.32B	1.86B	737.86M	815.90M	1.11B
Total Liabilities	3.10B	3.07B	2.65B	1.53B	1.63B	1.92B
Stockholders Equity	2.96B	2.93B	2.60B	2.29B	2.16B	1.76B
Cash Flow
Free Cash Flow	459.58M	491.78M	606.70M	461.70M	507.62M	451.89M
Operating Cash Flow	539.52M	556.19M	641.28M	513.13M	545.93M	502.42M
Investing Cash Flow	-856.32M	-844.40M	-1.44B	-222.76M	-33.17M	-194.11M
Financing Cash Flow	319.44M	294.50M	750.51M	-416.01M	-422.91M	-251.53M

Nordson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 222.78
• 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 222.78 is above the 20-day moving average (MA) of 215.52, above the 50-day MA of 203.70, and above the 200-day MA of 220.21, indicating a bullish trend. The MACD of 3.75 indicates Positive momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 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
PNR	78 Outperform	$17.58B	27.56	18.59%	0.94%	-0.42%	3.23%
NDSN	77 Outperform	$12.59B	28.66	15.54%	1.40%	1.98%	-7.66%
GGG	77 Outperform	$14.84B	31.33	20.28%	1.24%	-0.40%	-2.50%
IEX	76 Outperform	$13.76B	28.85	12.73%	1.56%	1.66%	-17.18%
ITT	76 Outperform	$12.68B	25.64	19.27%	0.88%	6.99%	23.25%
RRX	72 Outperform	$10.06B	43.22	3.69%	0.92%	-10.19%	―
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%

Nordson Corporate Events

Nordson Reports Strong Q2 2025 Financial Results

Nordson Corporation reported its fiscal second quarter 2025 results, highlighting a 5% year-over-year sales increase to $683 million, driven by strong performance in electronics systems and steady growth in nonwovens systems, precision agriculture, and medical fluid components. Despite a decrease in industrial systems sales, the company achieved an EBITDA of 32% of sales, reflecting operational excellence. The Atrion acquisition exceeded expectations, contributing to the growth. Looking ahead, Nordson anticipates third-quarter sales between $710 to $750 million, supported by strong order entry and backlog, aligning with their full-year guidance.

The most recent analyst rating on (NDSN) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on Nordson stock, see the NDSN Stock Forecast page.

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.