Nordson Corp

NDSN

General Industrial Machinery & Equipment, NEC

Mkt Cap

$13.34B

PE

27.58

Debt

$1.664B

Cash

$125.4M

EV

$14.87B

FCF

$607.2M

Market Cap

$13.34B

P/E Ratio

27.58

Debt

$1.664B

Cash

$125.4M

EV

$14.87B

FCF

$607.2M

Charts data: {"Earnings":[{"time":"2014-10-30","value":246773000},{"time":"2015-10-30","value":211111000},{"time":"2016-10-30","value":271843000},{"time":"2017-10-30","value":295802000},{"time":"2018-10-30","value":377375000},{"time":"2019-10-30","value":337091000},{"time":"2020-10-30","value":249539000},{"time":"2021-10-30","value":454368000},{"time":"2022-10-30","value":513103000},{"time":"2023-10-30","value":487493000}],"Sales":[{"time":"2014-10-30","value":1704021000},{"time":"2015-10-30","value":1688666000},{"time":"2016-10-30","value":1808994000},{"time":"2017-10-30","value":2066982000},{"time":"2018-10-30","value":2254668000},{"time":"2019-10-30","value":2194226000},{"time":"2020-10-30","value":2121100000},{"time":"2021-10-30","value":2362209000},{"time":"2022-10-30","value":2590278000},{"time":"2023-10-30","value":2628632000}],"Net Margins":[{"time":"2014-10-30","value":0.14481805095125003},{"time":"2015-10-30","value":0.12501643308978802},{"time":"2016-10-30","value":0.15027302467559317},{"time":"2017-10-30","value":0.14310816446393823},{"time":"2018-10-30","value":0.16737497494087822},{"time":"2019-10-30","value":0.15362638123876027},{"time":"2020-10-30","value":0.11764603271887228},{"time":"2021-10-30","value":0.19234877184872295},{"time":"2022-10-30","value":0.19808800445357602},{"time":"2023-10-30","value":0.1854550199495403}],"Assets":[{"time":"2014-10-30","value":2280130000},{"time":"2015-10-30","value":2360444000},{"time":"2016-10-30","value":2422365000},{"time":"2017-10-30","value":3414539000},{"time":"2018-10-30","value":3421012000},{"time":"2019-10-30","value":3516447000},{"time":"2020-10-30","value":3674656000},{"time":"2021-10-30","value":3790961000},{"time":"2022-10-30","value":3820375000},{"time":"2023-10-30","value":5251770000}],"Stockholders Equity":[{"time":"2014-10-30","value":904797000},{"time":"2015-10-30","value":660016000},{"time":"2016-10-30","value":851603000},{"time":"2017-10-30","value":1155493000},{"time":"2018-10-30","value":1450741000},{"time":"2019-10-30","value":1581045000},{"time":"2020-10-30","value":1758991000},{"time":"2021-10-30","value":2159130000},{"time":"2022-10-30","value":2294375000},{"time":"2023-10-30","value":2598060000}],"ROE":[{"time":"2014-10-30","value":0.27273852587928565},{"time":"2015-10-30","value":0.31985739739642677},{"time":"2016-10-30","value":0.3192132953970336},{"time":"2017-10-30","value":0.2559963582643945},{"time":"2018-10-30","value":0.2601256874934947},{"time":"2019-10-30","value":0.21320772021036719},{"time":"2020-10-30","value":0.14186485320277364},{"time":"2021-10-30","value":0.21044031623848494},{"time":"2022-10-30","value":0.2236351947698175},{"time":"2023-10-30","value":0.18763731399582764}],"ROA":[{"time":"2014-10-30","value":0.1611960721537807},{"time":"2015-10-30","value":0.1346060317465697},{"time":"2016-10-30","value":0.16035197007882793},{"time":"2017-10-30","value":0.13404503506915574},{"time":"2018-10-30","value":0.14456453236644595},{"time":"2019-10-30","value":0.13738668604986795},{"time":"2020-10-30","value":0.0951231897625247},{"time":"2021-10-30","value":0.1622614951723323},{"time":"2022-10-30","value":0.1838458266531427},{"time":"2023-10-30","value":0.12810176378630442}]}

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 three segments: Industrial Precision Solutions (IPS); Medical and Fluid Solutions; 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 and biopolymer 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 for cold materials, container coating, liquid finishing, and powder coating, as well as ultraviolet equipment used primarily in curing and drying operations. The Medical and Fluid Solutions segment offers medical devices, including cannulas, catheters, and medical balloons; single-use plastic components; precision manual and semi-automated dispensers; minimally invasive interventional delivery devices; and plastic molded syringes, cartridges, tips, and fluid connection components. 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; 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 1909 and is headquartered in Westlake, Ohio.

Sector

ESAB

10-Q
7/31/23
10-Q
4/30/23
10-Q
1/31/23
10-K
10/31/22
10-Q
7/31/22
10-Q
4/30/22
10-Q
1/31/22
10-K
10/31/21
10-Q
7/31/21
10-Q
4/30/21
10-Q
1/31/21
10-K
10/31/20
10-Q
7/31/20
10-Q
4/30/20
10-Q
1/31/20
10-K
10/31/19
10-Q
7/31/19
10-Q
4/30/19
10-Q
1/31/19
10-K
10/31/18
10-Q
7/31/18
10-Q
4/30/18
10-Q
1/31/18

DCF

Discounted Cash Flow Valuation of Nordson Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$607.2M	$683.3M	$763.2M	$846.1M	$930.9M	$1.016B	$1.101B	$1.184B	$1.263B	$1.337B	$1.404B	$14.04B
DCF		$594.2M	$577.1M	$556.3M	$532.2M	$505.3M	$476.1M	$445.1M	$412.9M	$380M	$346.9M	$3.469B
Value	$8.295B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 9.6%

Earnings Stability 75%

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.

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

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	10-2015	10-2016	10-2017	10-2018	10-2019	10-2020	10-2021	10-2022	10-2023	TTM
Net Margin	13%	15%	14%	17%	15%	12%	19%	20%	19%	18%
ROA	13%	16%	13%	14%	14%	9.5%	16%	18%	13%	13%
ROE	32%	32%	26%	26%	21%	14%	21%	22%	19%	17%

What is the average Net Margin?

The average Net Margin over the past 5 years is +16.91%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.85%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +14.19%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.35%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +20.62%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.75%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	10-2015	10-2016	10-2017	10-2018	10-2019	10-2020	10-2021	10-2022	10-2023	TTM
Debt FCF	5.70	3.73	6.71	3.25	4.45	2.54	1.68	2.45	3.07	2.74
Debt Equity	1.72	1.20	1.66	0.93	0.90	0.65	0.39	0.49	0.72	0.60
MIN
Graham Stability	-	-	100%	100%	100%	74%	100%	100%	100%	74%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.74.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.22.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.74.

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.

Earnings growth has been increasing in past years.

Years	10-2016	10-2018	10-2020	10-2022	Trend
Revenue	5.5%	3.1%	7.4%	1.5%	-0.018%
Net Income	8.7%	5.3%	25%	-5%	1.4%
Stockholders Equity	17%	12%	14%	13%	0.88%
FCF	12%	7.9%	10%	31%	1.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.12%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.02%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +5.25%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.39%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.36%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.88%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +7.9%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.22%.