Imagine a world where everyday products are seamlessly manufactured with precision and efficiency—this is the reality that Nordson Corporation creates. As a cornerstone in the industrial machinery sector, Nordson excels in engineering advanced systems for dispensing and applying adhesives, coatings, and biomaterials. With a reputation for innovation and quality, the company continuously shapes the manufacturing landscape. As we delve into Nordson’s financial health and market positioning, the pivotal question remains: do its fundamentals substantiate its current market valuation and future growth prospects?
Table of contents
Company Description
Nordson Corporation (NDSN), founded in 1935 and headquartered in Westlake, Ohio, is a prominent player in the industrial machinery sector. The company specializes in engineering, manufacturing, and marketing advanced systems for dispensing, applying, and controlling adhesives, coatings, and various fluids on a global scale. Operating through two primary segments—Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS)—Nordson supports diverse industries, including packaging, consumer goods, and semiconductor manufacturing. With a market cap of approximately $13.25B and a workforce of around 8,000 employees, Nordson is well-positioned as a leader in innovation within its field. The company’s strategic focus on automation and precision technology reinforces its role in shaping industry standards and enhancing operational efficiencies for its clients.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Nordson Corporation, focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes the income statement for Nordson Corporation (NDSN) over the past five fiscal years, detailing key financial metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 2.36B | 2.59B | 2.63B | 2.69B | 2.79B |
| Cost of Revenue | 1.04B | 1.16B | 1.20B | 1.20B | 1.25B |
| Operating Expenses | 709M | 724M | 753M | 812M | 828M |
| Gross Profit | 1.32B | 1.43B | 1.43B | 1.49B | 1.54B |
| EBITDA | 704M | 772M | 787M | 811M | 712M |
| EBIT | 600M | 672M | 675M | 674M | 561M |
| Interest Expense | 25M | 22M | 60M | 89M | 101M |
| Net Income | 454M | 513M | 487M | 467M | 484M |
| EPS | 7.82 | 8.90 | 8.54 | 8.17 | 8.56 |
| Filing Date | Dec 17 | Dec 19 | Dec 20 | Dec 18 | Dec 10 |
Interpretation of Income Statement
Over the five-year period, Nordson Corporation has shown a steady increase in Revenue, climbing from 2.36B in 2021 to 2.79B in 2025. Net Income has remained relatively stable, with a slight dip in 2024, before rebounding to 484M in 2025. Gross Profit margins have improved slightly, indicating better cost management. In 2025, while EBITDA decreased compared to the previous year, the company maintained a solid EPS of 8.56, suggesting resilience in earnings despite fluctuations in operating income and rising interest expenses. Overall, the trends suggest a company that is growing revenues while managing costs effectively, although attention is needed on interest liabilities.
Financial Ratios
The following table presents the key financial ratios for Nordson Corporation (NDSN) over recent fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 19.23% | 19.81% | 18.55% | 17.37% | 17.35% |
| ROE | 21.04% | 22.36% | 18.76% | 15.94% | – |
| ROIC | 14.39% | 16.33% | 11.09% | 9.65% | – |
| P/E | 33.08 | 25.27 | 24.90 | 30.56 | 27.10 |
| P/B | 6.96 | 5.65 | 4.67 | 4.87 | – |
| Current Ratio | 2.62 | 1.36 | 2.11 | 2.41 | 0 |
| Quick Ratio | 1.88 | 0.90 | 1.33 | 1.51 | 0 |
| D/E | 0.38 | 0.32 | 0.72 | 0.79 | – |
| Debt-to-Assets | 21.52% | 19.31% | 35.47% | 38.67% | – |
| Interest Coverage | 24.13 | 31.34 | 11.31 | 7.58 | -7.04 |
| Asset Turnover | 0.62 | 0.68 | 0.50 | 0.45 | – |
| Fixed Asset Turnover | 6.64 | 7.33 | 5.27 | 4.21 | – |
| Dividend Yield | 0.65% | 0.97% | 1.24% | 1.13% | 1.36% |
Interpretation of Financial Ratios
Analyzing Nordson Corporation’s financial ratios for FY 2025 reveals significant aspects of its financial health. The gross profit margin stands at 55.16%, indicating robust profitability, while the net profit margin is 17.35%, suggesting healthy bottom-line performance despite a lack of liquidity and solvency ratios. The current and quick ratios are both zero, raising concerns about the company’s ability to cover short-term liabilities. The price-to-earnings (P/E) ratio is 27.10, which may signal overvaluation compared to industry peers. Additionally, the interest coverage ratio is negative, reflecting potential risk in meeting interest obligations. Overall, while profitability metrics are strong, the lack of liquidity and solvency ratios presents a worry for investors.
Evolution of Financial Ratios
Over the past five years, Nordson Corporation has shown fluctuating profitability ratios, with the gross profit margin slightly declining from 56.05% in 2021 to 55.16% in 2025. However, liquidity ratios have significantly worsened, with the current ratio dropping to zero in 2025 from 2.62 in 2021, indicating a concerning trend in short-term financial health.
Distribution Policy
Nordson Corporation (NDSN) maintains a consistent dividend payout, with a current payout ratio of 37%. The annual dividend yield stands at approximately 1.36%, showing a steady trend in dividends per share over recent years. While the company is also engaged in share buybacks, I advise caution as high payouts can pose risks if not supported by robust cash flow. Overall, this distribution strategy appears to support sustainable long-term value creation for shareholders.
Sector Analysis
Nordson Corporation operates within the Industrial Machinery sector, specializing in advanced dispensing systems for adhesives and coatings, facing competition from key players while leveraging strong technological advantages. A SWOT analysis reveals its strengths in innovation and market reach, alongside potential weaknesses in economic sensitivity.
Strategic Positioning
Nordson Corporation (NDSN) operates in the industrial machinery sector, holding a competitive market share in dispensing and coating systems. With a market cap of approximately $13.25B, it faces moderate competitive pressure from companies offering similar technologies. Technological disruption is a constant threat, particularly from innovations in automation and materials science. Nevertheless, Nordson’s dual-segment approach—Industrial Precision Solutions and Advanced Technology Solutions—enables it to diversify revenue streams and mitigate risks associated with market fluctuations. This strategic positioning allows Nordson to maintain a robust presence amidst evolving industry dynamics.
Revenue by Segment
The pie chart below illustrates Nordson Corporation’s revenue distribution by segment for the fiscal year 2024.
In fiscal year 2024, Nordson Corporation’s revenue segments show a mixed performance. The Industrial Precision Solutions segment remains the largest at 1.48B, followed by Medical and Fluid Solutions at 695M, while Advanced Technology Systems contributed 510M. Notably, while Industrial Precision Solutions experienced growth from the previous year, Advanced Technology Systems saw a decline, highlighting potential concentration risks. Overall, the growth in the Industrial Precision Solutions segment may indicate a strategic focus, yet the slowdown in Advanced Technology Systems warrants close monitoring for future performance.
Key Products
Nordson Corporation offers a diverse range of products designed for various industrial applications. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| Adhesive Dispensing Systems | Automated systems for precise application of adhesives in packaging and manufacturing processes. |
| Coating and Laminating Systems | Equipment for applying coatings and laminates on a variety of materials, enhancing product durability and appearance. |
| Fluid Management Solutions | Systems for accurate dispensing and control of fluids in medical devices and semiconductor manufacturing. |
| UV Curing Equipment | Machines that utilize ultraviolet light to cure and dry coatings on various substrates, including plastics and metals. |
| Bond Testing Systems | Advanced systems for testing adhesion strength in various materials, crucial for quality control in manufacturing. |
| Interventional Delivery Devices | Minimally invasive devices designed for precise fluid delivery in medical applications, such as syringes and catheters. |
This table provides a snapshot of Nordson’s innovative product offerings that cater to multiple industries, reflecting their commitment to engineering excellence and technological advancement.
Main Competitors
The competitive landscape for Nordson Corporation is characterized by several strong players in the industrial machinery sector. Below is a summary of the main competitors, including Nordson itself, sorted by descending market capitalization:
| Company | Market Cap |
|---|---|
| ATI Inc. | 14.90B |
| Watsco, Inc. | 14.61B |
| Graco Inc. | 13.83B |
| Lincoln Electric Holdings, Inc. | 13.71B |
| IDEX Corporation | 13.56B |
| ITT Inc. | 13.53B |
| WESCO International, Inc. | 13.46B |
| Nordson Corporation | 13.25B |
| CNH Industrial N.V. | 12.47B |
| Crane Company | 11.07B |
| Donaldson Company, Inc. | 10.80B |
In summary, Nordson Corporation operates in a competitive market alongside significant players such as ATI Inc., Watsco, Inc., and Graco Inc. The primary geographic market for these companies is North America, although many have a global presence.
Competitive Advantages
Nordson Corporation (NDSN) enjoys several competitive advantages that position it well for future growth. With a strong market capitalization of $13.25B and a diverse product portfolio, Nordson excels in dispensing and application systems across various industries, including industrial machinery and healthcare. The company is actively pursuing new markets and products, particularly in advanced technology solutions, which could enhance its revenue streams. Additionally, its established distribution network and innovative capabilities in automation give it an edge in capturing emerging opportunities in the automation and semiconductor sectors.
SWOT Analysis
The SWOT analysis provides a structured overview of Nordson Corporation’s strengths, weaknesses, opportunities, and threats to inform strategic decisions.
Strengths
- strong market position
- diverse product portfolio
- solid financial performance
Weaknesses
- dependency on specific industries
- high operational costs
- limited geographic diversification
Opportunities
- growth in automation
- increasing demand for sustainable solutions
- expansion into emerging markets
Threats
- economic downturns
- intense competition
- supply chain disruptions
Overall, the SWOT assessment suggests that while Nordson Corporation possesses significant strengths and opportunities for growth, it should address its weaknesses and prepare for potential threats to maintain competitive advantage and drive long-term success.
Stock Analysis
Over the past year, Nordson Corporation (NDSN) has experienced significant price fluctuations, culminating in a bearish trend with notable price movements that reflect the current trading dynamics.
Trend Analysis
Analyzing the overall price change of NDSN over the past year, we see a decrease of 7.23%. This percentage indicates a bearish trend, as it falls below the -2% threshold. The stock has reached a notable high of 278.89 and a low of 176.73. Furthermore, the trend shows signs of acceleration, suggesting a more pronounced downward movement, supported by a standard deviation of 23.71.
Volume Analysis
In the last three months, trading volumes for NDSN have been characterized by increasing activity, with a total volume of 167.1M shares. The buyer-driven activity is evident, with buyers accounting for 50.67% of the total volume. Recent data indicates a shift towards buyer dominance, with buyers representing 61.17% of the recent volume, suggesting positive investor sentiment and increased market participation amidst the current bearish trend.
Analyst Opinions
Recent recommendations for Nordson Corporation (NDSN) suggest a consensus rating of “Buy.” Analysts have highlighted strong metrics, with a B+ rating reflecting solid discounted cash flow and return on equity scores. For instance, analysts note that the company’s return on assets is notably high at 5, indicating efficient asset utilization. However, the debt-to-equity and price-to-earnings ratios score lower at 2, suggesting some caution regarding leverage. Overall, the positive outlook is supported by analysts advocating for continued investment in NDSN due to its robust financial health.
Stock Grades
Nordson Corporation (NDSN) has received consistent evaluations from renowned grading companies, showcasing a stable outlook in the market.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-12-11 |
| Oppenheimer | Maintain | Outperform | 2025-08-25 |
| Baird | Maintain | Neutral | 2025-08-22 |
| Keybanc | Maintain | Overweight | 2025-07-15 |
| Baird | Maintain | Neutral | 2025-05-30 |
| Oppenheimer | Upgrade | Outperform | 2025-05-30 |
| Keybanc | Maintain | Overweight | 2025-04-08 |
| Keybanc | Upgrade | Overweight | 2025-03-04 |
| Baird | Maintain | Neutral | 2025-02-21 |
| Loop Capital | Upgrade | Buy | 2025-01-22 |
Overall, the trend indicates a strong confidence in Nordson Corporation, with multiple firms maintaining or upgrading their grades, reflecting a positive sentiment towards the company’s future performance.
Target Prices
The current consensus among analysts for Nordson Corporation (NDSN) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 295 | 240 | 269.4 |
Overall, analysts expect NDSN’s stock to perform well, with a consensus target price suggesting room for growth based on current evaluations.
Consumer Opinions
Consumer sentiment about Nordson Corporation (NDSN) reflects a mix of satisfaction and concerns, showcasing the company’s strengths while also highlighting areas needing improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent product quality and reliability.” | “Customer service could be improved.” |
| “Innovative solutions that boost productivity.” | “Pricing is on the higher side.” |
| “Responsive to industry needs.” | “Delivery times are often delayed.” |
| “Strong reputation in the market.” | “Limited support for new users.” |
Overall, consumer feedback for Nordson Corporation indicates a strong appreciation for product quality and innovation, while concerns about customer service and pricing persist.
Risk Analysis
In assessing the investment potential of Nordson Corporation (NDSN), it is crucial to understand the associated risks. Below is a summary of key risks that could affect the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for industrial products. | High | High |
| Supply Chain Risk | Disruptions due to global supply chain issues. | Medium | High |
| Regulatory Risk | Changes in regulations affecting manufacturing. | Medium | Medium |
| Competition Risk | Increased competition in the industrial sector. | High | Medium |
| Currency Risk | Exchange rate fluctuations impacting profits. | Medium | Medium |
The most pressing risks for NDSN include market fluctuations and supply chain disruptions, which have been heightened by recent global events, affecting manufacturing and delivery timelines.
Should You Buy Nordson Corporation?
Nordson Corporation (NDSN) reported a revenue of 2.79B in fiscal year 2025, reflecting a growth of 3.78% from the previous year. The company demonstrated a positive net income of 484.47M, supported by a net profit margin of 17.35%. Nordson has shown robust fundamentals, with a B+ rating, although it carries a debt-to-equity ratio of 0, indicating no debt. The company’s performance may suggest potential value creation if it maintains its current trajectory. However, investors should consider inherent risks before making decisions.
Favorable signals
I have identified several favorable elements in the provided data for Nordson Corporation. The gross margin stands at a strong 55.16%, indicating efficient cost management. The EBIT margin is also favorable at 20.1%, suggesting solid operational profitability. Additionally, the interest expense is favorable at 3.62%, reflecting manageable debt costs. The net margin is favorable at 17.35%, and the EPS growth of 4.93% indicates positive earnings potential.
Unfavorable signals
Conversely, there are notable unfavorable elements. The ROE and ROIC are both at 0%, indicating a lack of return on equity and capital, which suggests value destruction. The PE ratio of 27.1 is considered unfavorable, suggesting the stock may be overvalued. The current ratio and quick ratio are both at 0, which raises concerns about liquidity. Moreover, the EBIT growth has declined significantly by 16.79%, and the net margin growth is slightly down by 0.1%.
Conclusion
In summary, while there are favorable signals indicating the potential for profitability, the unfavorable indicators, particularly the lack of returns on equity and capital, suggest challenges. The overall trend is bearish with a price change of -7.23%, and recent seller volume exceeds buyer volume, so it might be prudent to wait for buyers to return before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Nordson’s Earnings Surpass Estimates in Q4, Revenues Miss – TradingView (Dec 11, 2025)
- Amundi Has $16.36 Million Stake in Nordson Corporation $NDSN – MarketBeat (Dec 11, 2025)
- Nordson Corp. (NDSN) Tops Q4 EPS by 10c, Offers Guidance – StreetInsider (Dec 10, 2025)
- Stronger 2025 Results and 2026 Outlook Might Change The Case For Investing In Nordson (NDSN) – simplywall.st (Dec 11, 2025)
- NORDSON Earnings Preview: Recent $NDSN Insider Trading, Hedge Fund Activity, and More – Quiver Quantitative (Dec 08, 2025)
For more information about Nordson Corporation, please visit the official website: nordson.com
