Why is Nordson Corp. ?
1
High Management Efficiency with a high ROCE of 18.40%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.24 times
3
Poor long term growth as Net Sales has grown by an annual rate of 5.74% and Operating profit at 9.75% over the last 5 years
4
Positive results in Apr 26
- OPERATING CASH FLOW(Y) Highest at USD 761.98 MM
- DIVIDEND PER SHARE(HY) Highest at USD 4.72
- RAW MATERIAL COST(Y) Fallen by 0.39% (YoY)
5
With ROCE of 14.96%, it has a attractive valuation with a 5.35 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 38.58%, its profits have risen by 13.6% ; the PEG ratio of the company is 3
6
High Institutional Holdings at 89.55%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 10.09% over the previous quarter.
7
Market Beating Performance
- The stock has generated a return of 38.58% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
How much should you hold?
- Overall Portfolio exposure to Nordson Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nordson Corp. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Nordson Corp.
38.58%
1.48
21.18%
S&P 500
25.41%
1.92
13.25%
Quality key factors
Factor
Value
Sales Growth (5y)
5.74%
EBIT Growth (5y)
9.75%
EBIT to Interest (avg)
16.96
Debt to EBITDA (avg)
1.52
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
0.56
Tax Ratio
19.27%
Dividend Payout Ratio
37.12%
Pledged Shares
0
Institutional Holding
89.55%
ROCE (avg)
18.40%
ROE (avg)
18.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
Price to Book Value
8.00
EV to EBIT
35.73
EV to EBITDA
29.77
EV to Capital Employed
5.35
EV to Sales
9.41
PEG Ratio
3.00
Dividend Yield
NA
ROCE (Latest)
14.96%
ROE (Latest)
16.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 761.98 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.72
RAW MATERIAL COST(Y)
Fallen by 0.39% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.77 times
-2What is not working for the Company
CASH AND EQV(HY)
Lowest at USD 222.41 MM
PRE-TAX PROFIT(Q)
Lowest at USD 138.86 MM
Here's what is working for Nordson Corp.
Dividend per share
Highest at USD 4.72 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 761.98 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Inventory Turnover Ratio
Highest at 2.77 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.39% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Nordson Corp.
Pre-Tax Profit
Lowest at USD 138.86 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Cash and Eqv
Lowest at USD 222.41 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






