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.