Nordson Corp

Industrials
Industrial Machinery/Components
www.nordson.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $14.54B
PE 31
Debt $1.60B
Cash $165.32M
EV $15.97B
FCF $568.90M

Earnings

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Sales & Net Margins

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Earnings	$472.89M
EBIT	$680.15M
ROE	17%
ROA	13%
FCF	$568.90M
Equity	$2.85B
Growth Stability	74%
PE	30.74
PEG	2.32
PB	5.09
P/FCF	25.55
P/S	5.45
Price/Cash	0.01
Debt/Equity	0.56
Debt/FCF	2.82
Net Margins	18%
Gross Margins	55%
Op. Margins	26%
Earnings CAGR	9%
Sales Growth YoY	2%
Sales Growth QoQ	2%
Sales CAGR	5%
FCF CAGR	12%
Equity CAGR	17%
Earnings Stability	0.72
Earnings Growth YoY	-8%
Earnings Growth QoQ	-1%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	6%
FCF CAGR 5Y	11%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	12%
Equity CAGR 3Y	12%
Market Cap	$14.54B
Revenue	$2.66B
Dividend Yield	1%
Payout Ratio	33%
Assets	$5.20B
Total Debt	$1.60B
Cash	$165.32M
Shares Outstanding	57.14M
EV	15.97B
Earnings Score	88%
Moat Score	94%
Safety Score	89%
Final Score	90%
Working Capital	705.87M
Current Ratio	2.36
Gross Profit	$1.47B
Shares Growth 3y	-1%
Equity Growth QoQ	2%
Equity Growth YoY	11%

Assets & ROA

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Stockholders Equity & ROE

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Nordson is a manufacturer of equipment (including pumps, valves, dispensers, applicators, filters, and pelletizers, among other equipment) used for dispensing adhesives, coatings, sealants, and other materials. The firm serves a diverse range of end markets including packaging, medical, electronics, and industrial. Nordson's business is organized into two segments: industrial precision solutions (53% of sales in fiscal 2021) and advanced technology solutions (47% of sales in fiscal 2021). The company generated approximately $2.4 billion in revenue and $615 million in operating income in its fiscal 2021.

SEC Filings

Direct access to Nordson Corp (NDSN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2022
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Nordson Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Nordson Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 9%

Stability 72%

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Nordson Corp Discounted Cash Flow

Fully customizable DCF calculator online for Nordson Corp.

Years

Calculation mode

= $13B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$569M	$635M	$709M	$792M	$884M	$988M	$1.1B	$1.2B	$1.4B	$1.5B	$1.7B	$17B
DCF		$578M	$586M	$595M	$604M	$613M	$623M	$632M	$641M	$651M	$661M	$6.6B
Value	$13B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Net Margins	13%	15%	14%	17%	15%	12%	19%	20%	19%	18%
ROA	-	16%	13%	14%	14%	10%	16%	18%	13%	13%
ROE	-	32%	26%	26%	21%	14%	21%	22%	19%	17%

Good Net Margins (17.74%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Debt over FCF	-	3.73	6.71	3.25	4.45	2.54	1.68	2.45	3.07	2.82
Debt over Equity	1.72	1.2	1.66	0.93	0.9	0.65	0.39	0.49	0.72	0.56
Growth Stability	-	-	-	100%	100%	74%	100%	100%	100%	74%

Neutral Debt/FCF ratio (2.82)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.56)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (74%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	CAGR 5Y
Revenue YoY growth	-	7%	14%	9%	-3%	-3%	11%	10%	1%	6%
Earnings YoY growth	-	29%	9%	28%	-11%	-26%	82%	13%	-5%	13%
Equity YoY growth	-	29%	36%	26%	9%	11%	23%	6%	13%	13%
FCF YoY growth	-	37%	4%	45%	-23%	42%	12%	-9%	31%	11%