Nordson Corp.

  • Market Cap: Mid Cap
  • Industry: Industrial Manufacturing
  • ISIN: US6556631025
USD
268.71
1.14 (0.43%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Trane Technologies Plc
Parker-Hannifin Corp.
Xylem, Inc.
Nordson Corp.
Dover Corp.
Johnson Controls International Plc
IDEX Corp.
Lennox International, Inc.
Entegris, Inc.
Ingersoll Rand, Inc.
Carrier Global Corp.

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 1.52 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
Flat results in Jan 26
  • CASH AND EQV(HY) Lowest at USD 228.83 MM
5
With ROCE of 14.96%, it has a attractive valuation with a 5.51 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 29.56%, its profits have risen by 13.6% ; the PEG ratio of the company is 3.1
6
High Institutional Holdings at 79.46%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating Performance
  • The stock has generated a return of 29.56% in the last 1 year, much higher than market (S&P 500) returns of 18.81%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Nordson Corp. should be less than 10%
  2. 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.
29.56%
0.69
27.75%
S&P 500
18.81%
0.98
19.26%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

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
79.46%
ROCE (avg)
18.40%
ROE (avg)
18.94%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
50
Industry P/E
Price to Book Value
8.26
EV to EBIT
36.82
EV to EBITDA
30.68
EV to Capital Employed
5.51
EV to Sales
9.70
PEG Ratio
3.10
Dividend Yield
NA
ROCE (Latest)
14.96%
ROE (Latest)
16.64%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 700.48 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.16

RAW MATERIAL COST(Y)

Fallen by -0.21% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.16 times

-1What is not working for the Company
CASH AND EQV(HY)

Lowest at USD 228.83 MM

Here's what is working for Nordson Corp.

Dividend per share
Highest at USD 5.16 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow
Highest at USD 700.48 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio
Highest at 5.16 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -0.21% (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.

Cash and Eqv
Lowest at USD 228.83 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents