Nordson Corp.

  • Market Cap: Mid Cap
  • Industry: Industrial Manufacturing
  • ISIN: US6556631025
  • NASDAQ: NDSN
USD
314.35
2.78 (0.89%)
  • 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.
Nordson Corp.
IDEX Corp.
Xylem, Inc.
Entegris, Inc.
Dover Corp.
Ingersoll Rand, Inc.
Lennox International, Inc.
Johnson Controls International Plc
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 2.24 times
3
With a growth in Net Profit of 30.29%, the company declared Very Positive results in Jul 26
  • OPERATING CASH FLOW(Y) Highest at USD 773.38 MM
  • ROCE(HY) Highest at 17.76%
  • DIVIDEND PER SHARE(HY) Highest at USD 4.81
4
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 39.66%, its profits have risen by 13.6% ; the PEG ratio of the company is 3
5
High Institutional Holdings at 90.79%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
  • Their stake has increased by 1.24% over the previous quarter.
6
Market Beating Performance
  • The stock has generated a return of 39.66% in the last 1 year, much higher than market (S&P 500) returns of 16.51%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  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, High Return

Absolute
Risk Adjusted
Volatility
Nordson Corp.
39.66%
1.78
22.27%
S&P 500
16.51%
1.25
13.16%
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
89.55%
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
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%
stock-recommendationTechnicals

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
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

15What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 773.38 MM

ROCE(HY)

Highest at 17.76%

DIVIDEND PER SHARE(HY)

Highest at USD 4.81

INTEREST COVERAGE RATIO(Q)

Highest at 993.37

RAW MATERIAL COST(Y)

Fallen by -1.24% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.87 times

NET SALES(Q)

Highest at USD 817.67 MM

OPERATING PROFIT(Q)

Highest at USD 260.21 MM

PRE-TAX PROFIT(Q)

Highest at USD 183.16 MM

NET PROFIT(Q)

Highest at USD 150.57 MM

EPS(Q)

Highest at USD 2.73

-2What is not working for the Company
CASH AND EQV(HY)

Lowest at USD 215.45 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.81 times

Here's what is working for Nordson Corp.

Interest Coverage Ratio
Highest at 993.37
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share
Highest at USD 4.81 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 773.38 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales
Highest at USD 817.67 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Operating Profit
Highest at USD 260.21 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit
Highest at USD 183.16 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 150.57 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 2.73
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio
Highest at 2.87 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost
Fallen by -1.24% (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 215.45 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio
Lowest at 4.81 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio