Nordson Corp (NDSN) stock analysis

P/E above its 5-year median

Nordson's P/E of 33.3 is above its own 5-year median of 28.3.

P/E above the industry

Nordson's P/E of 33.3 is above the General Industrial Machinery and Equipment median of 26.9.

EV/EBITDA above its 5-year median

Nordson's EV/EBITDA of 22.7 is above its 5-year median of 19.4.

P/B above the industry

Nordson's price-to-book of 5.61 is above the General Industrial Machinery and Equipment median of 2.84.

Trading above fair value

The share price of $329.23 is above our fair value estimate of $242.69.

Margin of safety under 20%

The price is 35.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -1.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 22.0% over the last twelve months, against a 5-year average of 14.2% a year.

Growing slower than the industry

Revenue grew 7.0% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Guidance raised

Nordson raised its full year Sales outlook on Aug 19, 2026.

Gross margin improving

Gross margin was 55.3% over the last twelve months, against 54.6% a year earlier.

Return on equity over 15%

Return on equity was 17.8% over the last twelve months and averaged 19.9% over five years.

Return on capital over 10%

Return on invested capital was 13.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Nordson's return on equity of 17.8% is above the General Industrial Machinery and Equipment median of 9.9%.

Earnings grew over 5 years

Net income grew 14.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 18.6% over the last twelve months, against a 5-year average of 18.5%.

Net margin above the industry

Nordson's net margin of 18.6% is above the General Industrial Machinery and Equipment median of 8.0%.

High debt

Debt is 53.0% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 62.9% five years ago to 53.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 44.7% of total debt.

Interest well covered

Operating income covers interest expense 8.8 times.

Short-term assets cover short-term debts

Current assets are 1.82 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.32; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Nordson paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Nordson yields 1.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 33.0% of net income.

Covered by free cash flow

Dividends take 25.3% of free cash flow.