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Nordson
(NASDAQ:NDSN)
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Rating:75Outperform
Price Target:
$311.00
▲(10.33% Upside)
Action:Reiterated
Date:05/21/26
The score is driven primarily by strong financial performance (high margins, excellent cash conversion, and improving leverage) and a notably constructive earnings call with raised guidance and strong backlog/order trends. Offsetting factors are mixed technical momentum and a relatively high P/E with only a modest dividend yield.
Positive Factors
Free Cash Flow Strength
Consistently high FCF and excellent cash conversion provide durable funding for dividends, share repurchases, bolt-on M&A, and capex without relying on external financing. Strong cash generation also supports balance sheet repair and cushions the business versus cyclical demand swings.
Negative Factors
Meaningful Absolute Debt
Although leverage ratios are improving, a near‑$2 billion debt stock keeps interest and refinancing risk relevant, limiting runway for large transformative acquisitions and increasing sensitivity to macro shocks; steady cash generation mitigates but does not eliminate this constraint.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently high FCF and excellent cash conversion provide durable funding for dividends, share repurchases, bolt-on M&A, and capex without relying on external financing. Strong cash generation also supports balance sheet repair and cushions the business versus cyclical demand swings.
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
$15.96B
Dividend Yield1.64%
Average Volume (3M)412.99K
Price to Earnings (P/E)30.6
Beta (1Y)1.03
Revenue Growth7.37%
EPS Growth20.50%
CountryUS
Employees8,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)9.41
Shares Outstanding55,717,950
10 Day Avg. Volume364,460
30 Day Avg. Volume412,991
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 Cap1.13
Enterprise Value/Revenue6.21
Enterprise Value/Gross Profit11.28
Enterprise Value/Ebitda19.82
Forecast
1Y Price Target
$338.33Price Target Upside20.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)11.6
Revenue Forecast (FY)$2.98B
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 makes money primarily by selling engineered capital equipment and systems that dispense, apply, coat, melt, meter, mix, or otherwise process materials used in customers’ production lines, along with the supporting components that keep thos...
Nordson Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based operational and financial results: record sales, EBITDA, adjusted EPS, robust backlog (+18%), and exceptional cash generation and balance sheet improvement. All three segments posted record quarters, with ATS showing particularly strong momentum tied to semiconductor and electronics demand. Management raised full-year guidance and emphasized disciplined capital deployment including a strategic bolt-on acquisition. Headwinds were manageable and largely one-time or noncash (pension settlement charge, mark-to-market adjustments), and the company noted short-term margin pressure from a regulatory-driven medical product change and inflationary input costs. Given the weight and quality of the positive operating and financial achievements relative to the contained challenges, the overall tone is confident and growth-oriented.Positive Updates
Record Quarterly Sales
Second quarter record sales of $741 million, up 8% year-over-year, including 7% organic growth and a 3% favorable currency translation impact.
Negative Updates
Lower-than-Typical Incremental EBITDA Conversion
Incremental EBITDA contribution was ~31% in the quarter, below the company's typical mid- to upper-30% sales conversion range (though a 300 basis point improvement versus Q1).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Sales
Second quarter record sales of $741 million, up 8% year-over-year, including 7% organic growth and a 3% favorable currency translation impact.
Read all positive updates
Company Guidance
Nordson guided fiscal 2026 third quarter sales of $760–$790 million (midpoint $775M) and third quarter adjusted EPS of $2.95–$3.15 (midpoint $3.05), and raised full‑year sales guidance to $2.930–$3.010 billion (midpoint $2.970B) with adjusted EPS $11.30–$11.80 (midpoint $11.55); management said it has high confidence in the midpoints and that a meaningful macro slowdown would be required to reach the low end. The company noted backlog up 18% year‑over‑year and broad‑based order momentum, expects foreign exchange to be essentially neutral in the second half, and that the net M&A impact (divestiture plus the small CapstanAG bolt‑on) is roughly a 1% headwind in the back half. Nordson also reiterated a full‑year adjusted tax rate of 18–19%, highlighted Q2 free cash flow of $170M (119% conversion of net income excluding noncash items), cash of $102M, net debt of ~$1.8B and leverage of 1.9x (below the low end of its target range) as financial flexibility supporting M&A and shareholder returns.Nordson Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
73
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.90B | 2.79B | 2.69B | 2.63B | 2.59B | 2.36B |
| Gross Profit | 1.60B | 1.54B | 1.49B | 1.43B | 1.43B | 1.32B |
| EBITDA | 910.43M | 849.28M | 810.58M | 786.74M | 771.62M | 703.55M |
| Net Income | 528.12M | 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 | 102.02M | 108.44M | 115.95M | 115.68M | 163.46M | 299.97M |
| Total Debt | 1.97B | 2.16B | 2.40B | 1.96B | 951.22M | 1.05B |
| Total Liabilities | 2.76B | 2.87B | 3.07B | 2.65B | 1.53B | 1.63B |
| Stockholders Equity | 3.20B | 3.04B | 2.93B | 2.60B | 2.29B | 2.16B |
Cash Flow | ||||||
| Free Cash Flow | 718.15M | 661.12M | 491.78M | 606.70M | 461.70M | 507.62M |
| Operating Cash Flow | 766.46M | 719.17M | 556.19M | 641.28M | 513.13M | 545.93M |
| Investing Cash Flow | -39.26M | -26.69M | -844.40M | -1.44B | -222.76M | -33.17M |
| Financing Cash Flow | -744.00M | -706.43M | 294.50M | 750.51M | -416.01M | -422.91M |
Nordson Technical Analysis
Neutral
281.89
Price Trends
286.61
Negative
281.34
Positive
262.57
Positive
Market Momentum
0.45
Positive
46.38
Neutral
19.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDSN, the sentiment is Neutral. The current price of 281.89 is below the 20-day moving average (MA) of 292.79, below the 50-day MA of 286.61, and above the 200-day MA of 262.57, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 19.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.26B | 32.96 | 12.61% | 1.56% | 7.54% | 7.09% | |
75 Outperform | $15.96B | 30.61 | 17.12% | 1.64% | 7.37% | 20.50% | |
72 Outperform | $17.25B | 34.32 | 13.03% | 0.79% | 16.63% | -9.75% | |
71 Outperform | $12.15B | 23.80 | 19.65% | 1.32% | 4.61% | 7.87% | |
70 Outperform | $12.53B | 39.73 | 16.30% | 0.49% | 7.18% | 5.22% | |
68 Neutral | $13.88B | 72.30 | 7.18% | ― | -0.51% | -44.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Nordson Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Nordson Delivers Record Q2 Results, Raises 2026 Outlook
Positive
May 20, 2026
Nordson Corporation reported record results for its fiscal second quarter ended April 30, 2026, with sales rising 8% year over year to $741 million, driven by 7% organic growth and favorable currency effects across all segments. Net income increas...
Executive/Board ChangesShareholder Meetings
Nordson Shareholders Approve Directors, Auditor and Executive Pay
Positive
Mar 4, 2026
At its 2026 annual meeting held on March 2, 2026, Nordson shareholders representing 91.66% of outstanding shares voted, ensuring a quorum for the session. Shareholders elected Christopher Mapes, Michael Merriman Jr. and Sundaram Nagarajan to the b...
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.