ScoreWhy 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 5.33% and Operating profit at 8.79% over the last 5 years
4
Flat results in Jul 25
- OPERATING CASH FLOW(Y) Lowest at USD 612.64 MM
- INTEREST(HY) At USD 52.83 MM has Grown at 35.77%
- ROCE(HY) Lowest at 15.59%
5
With ROCE of 12.94%, it has a expensive valuation with a 4.50 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 -9.59%, its profits have fallen by -7%
6
High Institutional Holdings at 80.48%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.5% over the previous quarter.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -9.59% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow 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, Low Return
Absolute
Risk Adjusted
Volatility
Nordson Corp.
-7.75%
0.20
29.11%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.33%
EBIT Growth (5y)
8.79%
EBIT to Interest (avg)
16.96
Debt to EBITDA (avg)
1.52
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
0.60
Tax Ratio
19.27%
Dividend Payout Ratio
34.77%
Pledged Shares
0
Institutional Holding
80.48%
ROCE (avg)
18.40%
ROE (avg)
18.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
46
Industry P/E
Price to Book Value
6.99
EV to EBIT
34.78
EV to EBITDA
28.50
EV to Capital Employed
4.50
EV to Sales
8.43
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.94%
ROE (Latest)
15.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 35.18%
DIVIDEND PER SHARE(HY)
Highest at USD 4.94
RAW MATERIAL COST(Y)
Fallen by 1.73% (YoY
OPERATING PROFIT(Q)
Highest at USD 237.82 MM
OPERATING PROFIT MARGIN(Q)
Highest at 32.07 %
PRE-TAX PROFIT(Q)
Highest at USD 162.16 MM
NET PROFIT(Q)
Highest at USD 128.19 MM
EPS(Q)
Highest at USD 2.22
-9What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 612.64 MM
INTEREST(HY)
At USD 52.83 MM has Grown at 35.77%
ROCE(HY)
Lowest at 15.59%
Here's what is working for Nordson Corp.
Dividend per share
Highest at USD 4.94 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 35.18% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Operating Profit
Highest at USD 237.82 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 32.07 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 162.16 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 128.19 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 2.22
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by 1.73% (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
Depreciation
Highest at USD 37.85 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Nordson Corp.
Operating Cash Flow
Lowest at USD 612.64 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 52.83 MM has Grown at 35.77%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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