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Nordson
(NASDAQ:NDSN)
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Rating:78Outperform
Price Target:
$382.00
▲(14.52% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by strong financial quality (especially free-cash-flow generation and improved leverage) and a very positive earnings update with raised guidance and surging backlog. Offsetting factors are a premium valuation (high P/E with a sub-1% yield) and near-term technical stretch (overbought RSI) despite a clear uptrend.
Positive Factors
High-Quality Cash Generation
Strong conversion of earnings into free cash flow gives Nordson internal funding for investment, debt reduction and shareholder returns. This supports resilience across industrial cycles and reduces reliance on external financing.
Negative Factors
Mature Growth and Margin Pressure
Moderate underlying growth limits the company’s expansion runway, while lower operating margins suggest cost or mix pressure. Persistent weakness could constrain earnings growth despite strong gross margins and cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
High-Quality Cash Generation
Strong conversion of earnings into free cash flow gives Nordson internal funding for investment, debt reduction and shareholder returns. This supports resilience across industrial cycles and reduces reliance on external financing.
Read all positive factors
Nordson Key Performance Indicators (KPIs)
Any
Sales by Segment
Breaks down revenue generated by each business segment, indicating which areas are driving growth and which may need strategic adjustments.
Breaks down revenue generated by each business segment, indicating which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyNordson (NDSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.58B
Dividend Yield0.98%
Average Volume (3M)399.61K
Price to Earnings (P/E)33.7
Beta (1Y)1.00
Revenue Growth7.02%
EPS Growth24.24%
CountryUS
Employees8,200
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)9.93
Shares Outstanding55,699,368
10 Day Avg. Volume343,115
30 Day Avg. Volume399,608
Financial Highlights & Ratios
PEG Ratio5.68
Price to Book (P/B)4.31
Price to Sales (P/S)4.70
P/FCF Ratio19.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$364.00Price Target Upside9.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)11.89
Revenue Forecast (FY)$3.05B
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, medical components, and other fluids. The Industrial Precision Solutions segment p...
How the Company Makes Money
Nordson primarily makes money by selling engineered capital equipment and systems used for precision dispensing and coating, along with the supporting components and integrated solutions needed to run those processes in customer factories. A subst...
Nordson Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported record sales, record EBITDA and adjusted EPS, strong free cash flow and a materially increased backlog, and it raised full-year guidance. Segment performance was strong across the board with exceptional outperformance in Advanced Technology Solutions and solid showings in Medical & Fluid Solutions. Headwinds include a noncash mark-to-market charge, ongoing inflationary pressures, a divestiture that reduced comparable medical sales, and concentration of upside in a cyclical segment (ATS) that may face tougher comparables next year. Overall financial strength (cash generation, deleveraging, margins) and constructive guidance outweighed the limited headwinds.Positive Updates
Record Quarterly Sales
Third-quarter sales of $818 million, a 10% increase year-over-year (prior year $742 million); included 12% overall organic growth and effectively neutral currency impact.
Negative Updates
Noncash Mark-to-Market Loss Impact
Other GAAP expenses increased by $14 million year-over-year primarily due to a $15 million noncash mark-to-market charge on minority investments; management states this is market-volatility driven and negligible year-to-date.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Sales
Third-quarter sales of $818 million, a 10% increase year-over-year (prior year $742 million); included 12% overall organic growth and effectively neutral currency impact.
Read all positive updates
Company Guidance
Nordson raised its fiscal 2026 full‑year guidance to $3.035–$3.075 billion in sales and $11.80–$12.00 in adjusted diluted EPS (assuming current FX rates, i.e., neutral FX), citing 35% year‑over‑year backlog growth and sustained order‑entry momentum; the update follows a record Q3 (sales $818 million, +10% YoY; organic +12%), record Q3 adjusted EPS of $3.25 (a $0.10 beat, +19% YoY), record EBITDA of $262 million (32% of sales) and adjusted operating profit of $226 million (28% of sales), with strong cash generation (Q3 free cash flow $237 million; ~144% conversion of net income), cash on hand $113 million, net debt ~$1.6 billion and leverage of 1.7x, and an expected full‑year tax rate near 18%; management cited these metrics, plus YTD capex of $40 million and year‑to‑date shareholder returns ($137 million dividends, $159 million repurchases), as the basis for the upgraded outlook.Nordson Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
87
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.98B | 2.79B | 2.69B | 2.63B | 2.59B | 2.36B |
| Gross Profit | 1.65B | 1.54B | 1.49B | 1.43B | 1.43B | 1.32B |
| EBITDA | 947.41M | 849.28M | 810.58M | 786.74M | 771.62M | 703.55M |
| Net Income | 555.18M | 484.47M | 467.28M | 487.49M | 513.10M | 454.37M |
Balance Sheet | ||||||
| Total Assets | 5.95B | 5.92B | 6.00B | 5.25B | 3.82B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 113.43M | 108.44M | 115.95M | 115.68M | 163.46M | 299.97M |
| Total Debt | 1.81B | 2.16B | 2.40B | 1.96B | 951.22M | 1.05B |
| Total Liabilities | 2.68B | 2.87B | 3.07B | 2.65B | 1.53B | 1.63B |
| Stockholders Equity | 3.27B | 3.04B | 2.93B | 2.60B | 2.29B | 2.16B |
Cash Flow | ||||||
| Free Cash Flow | 728.49M | 661.12M | 491.78M | 606.70M | 461.70M | 507.62M |
| Operating Cash Flow | 777.86M | 719.17M | 556.19M | 641.28M | 513.13M | 545.93M |
| Investing Cash Flow | -37.08M | -26.69M | -844.40M | -1.44B | -222.76M | -33.17M |
| Financing Cash Flow | -762.18M | -706.43M | 294.50M | 750.51M | -416.01M | -422.91M |
Nordson Technical Analysis
Positive
333.58
Price Trends
301.27
Positive
291.11
Positive
275.08
Positive
Market Momentum
9.52
Negative
73.40
Negative
86.86
Negative
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 333.58 is above the 20-day moving average (MA) of 313.90, above the 50-day MA of 301.27, and above the 200-day MA of 275.08, indicating a bullish trend. The MACD of 9.52 indicates Negative momentum. The RSI at 73.40 is Negative, neither overbought nor oversold. The STOCH value of 86.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDSN.
Nordson Risk Analysis
Nordson disclosed 25 risk factors in its most recent earnings report. Nordson reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nordson Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $16.98B | 33.70 | 12.91% | 1.29% | 7.32% | 12.36% | |
78 Outperform | $18.58B | 33.69 | 17.59% | 1.11% | 7.02% | 24.24% | |
76 Outperform | $12.75B | 24.64 | 20.27% | 1.46% | 4.58% | 12.51% | |
75 Outperform | $18.41B | 41.09 | 10.35% | 0.75% | 28.07% | -19.95% | |
66 Neutral | $11.91B | 36.20 | 16.19% | 0.43% | 13.85% | 8.45% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $11.91B | 46.85 | 9.54% | ― | 0.61% | -27.77% |
* Industrials Sector Average
NDSN
Nordson
334.58
111.83
50.21%
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Nordson Corporate Events
Business Operations and StrategyFinancial Disclosures
Nordson Delivers Record Q3 Results, Raises 2026 Guidance
Positive
Aug 19, 2026
On August 19, 2026, Nordson reported record fiscal third-quarter results for the period ended July 31, 2026, posting all-time high sales of $818 million, up 10% year over year, and net income of $153 million, or $2.73 per diluted share. Adjusted e...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.