What Are the Fundamentals Of NDSN?

Nordson has moved 0.6% so far today on a volume of 38,590, compared to its average of 236,655. In contrast, the S&P 500 index moved 0.2%.

Over the last 52 weeks, the stock moved -8.5%, with a high of $258.77 and a low of $194.89. During this time, the stock underperformed the S&P 500 index by 11.7%.Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. The large-cap Industrials company has 7,331 full time employees and is based in Westlake, OH. Nordson has returned a 0.9% dividend yield over the last 12 months.

Snapshot of the Company's Strong Margins and Cash Flows:

2019-10-31 2020-10-31 2021-10-31 2022-10-31
Revenue (MM) $2,194 $2,121 $2,362 $2,590
Revenue Growth n/a -3.3% 11.4% 9.6%
Gross Margins 54.33% 53.3% 56.05% 55.07%
Gross Margins Growth n/a -1.9% 5.16% -1.75%
Operating Margins 22.02% 20.6% 26.04% 27.12%
Operating Margins Growth n/a -6.45% 26.41% 4.15%
Earnings Per Share $5.79 $4.27 $7.74 $8.81
EPS Growth n/a -26.25% 81.26% 13.82%
Free Cash Flow (MM) $319 $452 $508 $462
FCF Growth n/a 41.81% 12.33% -9.05%
Net Debt / EBITDA 1.87 1.72 0.77 0.77

Basic Valuation Metrics Show Nordson Is Fairly valued:

Compared to the Industrials sector's average of 21.46, Nordson has a trailing twelve month price to earnings (P/E) ratio of 26.8 and, based on its Eps guidance of 10.12, an expected P/E ratio of 23.3. The firm's price to earnings growth (PEG) is 1.91, which indicates that it is overvalued in terms of its expected rate of earnings growth. . Nordson's price to book (P/B) ratio is 5.9 compared to its sector average of 3.7.

As of the date of publication, the company is trading 164.5% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 8.81 * 40.174) = $89.24

There is Positive Market Sentiment About Nordson:

7 analysts are following Nordson and have set target prices ranging from $250 to $300 per share. On average, they have given the company a rating of buy. At today's prices, NDSN is trading -12.07% away from its average analyst target price of $268.43 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 1.7% of the company's shares are tied to short positions. Institutions own 75.4% of Nordson's shares, while the insider ownership rate stands at 10.78%. The biggest shareholder is the Vanguard Group, Inc. with a 10.59% stake in the company worth approximately $1,427,969,645.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.