Nordson (NDSN) AI Stock Analysis

• Market Cap: $16.45B
• Dividend Yield: 1.64%
• Average Volume (3M): 433.36K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.06
• Revenue Growth: 3.78%
• EPS Growth: 4.85%
• Country: US
• Employees: 8,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.37
• Shares Outstanding: 55,783,600
• 10 Day Avg. Volume: 472,177
• 30 Day Avg. Volume: 433,355
• 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: 1.11
• Enterprise Value/Revenue: 6.42
• Enterprise Value/Gross Profit: 11.63
• Enterprise Value/Ebitda: 19.98
• 1Y Price Target: $307.33
• Price Target Upside: 5.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 11.44
• Revenue Forecast (FY): $2.95B

• Rating: 76 Outperform
• Price Target: $338.00 ▲(16.22% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

Overall score reflects strong underlying financial quality (durable margins and cash generation) and a constructive earnings outlook with raised FY26 guidance. These positives are tempered by expensive valuation and technically overbought momentum, plus elevated leverage versus prior years.

Positive Factors

High and durable margins

Nordson's structural profitability — sustained gross margins in the mid-50s and EBIT margins in the low‑to‑mid 20s — signals durable pricing power and cost control across its precision-equipment businesses. That margin base supports earnings resilience if revenue growth slows.

Strong cash generation and conversion

Robust operating and free cash flow, with FCF nearly matching net income on a TTM basis, provides durable internal funding for capex, dividends, buybacks and M&A. High cash conversion underpins balance sheet resilience and long-term capital allocation flexibility.

Advanced Technology Solutions momentum & backlog

Strong ATS segment growth, driven by electronics/semiconductor demand, and a rising backlog provide structural end‑market exposure to higher‑value systems. This supports above‑market margin expansion and multi‑quarter revenue visibility versus commodity industrial cycles.

Negative Factors

Rising leverage and net debt load

Higher leverage and sizable net debt increase financial risk and reduce flexibility for opportunistic investment or to withstand cyclical downturns. Elevated leverage also raises interest‑cost sensitivity and covenant exposure, making capital allocation choices more constrained over the medium term.

Slowing top-line growth

Decelerating revenue growth makes future earnings more dependent on margin maintenance and cost discipline. With top-line expanding at low single digits, sustainable EPS gains require continued margin expansion or buybacks, which may be harder to achieve during end‑market softness.

Mix, FX and ATS timing create margin and volatility risk

Geographic/product mix shifts and favorable FX that carries lower incremental margins can compress overall profitability. Combined with ATS systems' lumpiness, this reduces earnings predictability and can amplify quarter‑to‑quarter volatility despite healthy underlying demand.

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

High-quality profitability and cash generation (gross margins ~54–56%, EBIT margins low-to-mid 20s; strong TTM operating cash flow and free cash flow close to net income). Offsetting factors are slowing revenue growth and a higher leverage profile versus prior years (debt-to-equity rising into ~0.64–0.79 range), which adds cyclicality risk.

Income Statement

NDSN shows consistently strong profitability with solid gross margins (~54–56%) and healthy operating profitability (EBIT margin generally in the low-to-mid 20s). Net margins remain attractive (roughly ~17–20%), and TTM (Trailing-Twelve-Months) net income is solid at ~$523M. The key weakness is growth: revenue has decelerated to low single digits in recent annual periods, which makes earnings quality more dependent on margin discipline than top-line expansion.

Balance Sheet

The balance sheet is generally sound with steady equity and solid returns on equity (mid-teens in recent periods; ~16% in TTM (Trailing-Twelve-Months)). Leverage, however, has risen versus earlier years: debt-to-equity moved from ~0.38–0.44 (2021–2022) to ~0.64–0.79 (2023–TTM), increasing financial risk and reducing flexibility if demand softens.

Cash Flow

Cash generation is strong: TTM (Trailing-Twelve-Months) operating cash flow is ~$700M and free cash flow is ~$646M, with free cash flow close to net income (TTM free cash flow to net income ~0.92), supporting earnings quality. That said, free cash flow growth has been choppy and slightly negative in TTM (Trailing-Twelve-Months), and cash flow coverage of net income varies by year, pointing to some variability in working capital or cash conversion.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	2.85B	2.79B	2.69B	2.63B	2.59B	2.36B
Gross Profit	1.57B	1.54B	1.49B	1.43B	1.43B	1.32B
EBITDA	913.91M	874.79M	810.58M	786.74M	771.62M	703.55M
Net Income	523.20M	484.47M	467.28M	487.49M	513.10M	454.37M
Balance Sheet
Total Assets	5.96B	5.92B	6.00B	5.25B	3.82B	3.79B
Cash, Cash Equivalents and Short-Term Investments	120.39M	108.44M	115.95M	115.68M	163.46M	299.97M
Total Debt	2.14B	2.16B	2.40B	1.96B	951.22M	1.05B
Total Liabilities	2.85B	2.87B	3.07B	2.65B	1.53B	1.63B
Stockholders Equity	3.11B	3.04B	2.93B	2.60B	2.29B	2.16B
Cash Flow
Free Cash Flow	646.31M	661.12M	491.78M	606.70M	461.70M	507.62M
Operating Cash Flow	700.48M	719.17M	556.19M	641.28M	513.13M	545.93M
Investing Cash Flow	-30.09M	-26.69M	-844.40M	-1.44B	-222.76M	-33.17M
Financing Cash Flow	-691.09M	-706.43M	294.50M	750.51M	-416.01M	-422.91M

Nordson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 290.83
• 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 290.83 is above the 20-day moving average (MA) of 288.22, above the 50-day MA of 267.27, and above the 200-day MA of 232.46, indicating a bullish trend. The MACD of 7.42 indicates Positive momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 23.73 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
GGG	81 Outperform	$15.46B	30.31	19.92%	1.32%	2.85%	3.09%
ITT	78 Outperform	$17.81B	33.88	17.85%	0.79%	8.01%	2.67%
IEX	77 Outperform	$15.50B	32.48	12.35%	1.56%	7.09%	-2.29%
NDSN	76 Outperform	$16.45B	31.86	17.47%	1.64%	3.78%	4.85%
CR	65 Neutral	$11.77B	32.65	17.92%	0.49%	-0.37%	21.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	60 Neutral	$13.80B	88.04	6.22%	―	5.52%	9.03%

Nordson Corporate Events

Nordson Posts Record Q1 Results, Raises 2026 Guidance

Nordson Corporation reported record first-quarter fiscal 2026 results on February 18, 2026, with sales rising 9% year over year to $669 million, driven by 7% organic growth and favorable currency, and net income climbing to $133 million, or $2.38 per diluted share. Adjusted earnings per share reached a first-quarter record of $2.37, backlog increased about 4%, all segments delivered organic growth led by Advanced Technology Solutions’ 23% sales gain, and management raised both second-quarter and full-year 2026 sales and adjusted earnings guidance, signaling growing confidence in demand, particularly in semiconductor and electronics end markets.

The most recent analyst rating on (NDSN) stock is a Buy with a $312.00 price target. To see the full list of analyst forecasts on Nordson stock, see the NDSN Stock Forecast page.

Nordson Expands Multicurrency Revolving Credit Facility to 2031

On January 30, 2026, Nordson Corporation entered into an amended and restated senior unsecured multicurrency revolving credit agreement, replacing its June 6, 2023 facility and establishing a $1.2 billion revolving credit line maturing on January 30, 2031. The agreement, arranged with Wells Fargo as administrative agent and a syndicate of global lenders, allows borrowings in multiple major currencies, includes sub-facilities for standby letters of credit and swingline loans, and is governed by customary covenants tied to leverage and interest coverage ratios, as well as standard events of default. Interest rates under the facility are indexed to base or benchmark rates such as SOFR, EURIBOR, TIBOR, SORA, SONIA or SARON plus a margin based on Nordson’s leverage or debt rating, with proceeds available for working capital, acquisitions, and general corporate purposes, including refinancing existing debt. At closing, Nordson used part of the new facility to repay and retire $248 million of outstanding term loans under its prior credit arrangement, enhancing its financial flexibility and extending its debt maturity profile.

The most recent analyst rating on (NDSN) stock is a Buy with a $311.00 price target. To see the full list of analyst forecasts on Nordson stock, see the NDSN Stock Forecast page.

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.

The most recent analyst rating on (NDSN) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on Nordson stock, see the NDSN Stock Forecast page.