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Nordson Corporation (NDSN)

Fair Value
IndustrialsSpecialty Industrial MachineryUnited States

Fundamental

71

Price

$318.84

Market Cap

$17.96B

Part 1 · What the company is worth

Overview

Nordson makes precision dispensing equipment: machines that apply exact, controlled amounts of adhesives, coatings, sealants and other fluids inside a factory line, plus components used in medical devices and semiconductor manufacturing. Its products are typically a small line item inside a much larger production process — a diaper plant's glue applicator, a chip packaging step, a catheter's plastic tubing — but a failure or imprecision there can shut the whole line down.

How it makes money

Revenue comes mostly from selling dispensing systems and components once, plus recurring sales of spare parts, nozzles and service that keep those systems running precisely over years of use. Because customers integrate Nordson's equipment into a validated production process, replacing it later requires re-qualifying the whole line, which supports steady repeat business rather than one-off equipment sales.

Revenue by segment

Industrial Precision Solutions48%

Adhesive, coating and sealant dispensing systems sold into packaging, general industrial and consumer goods production lines.

Medical and Fluid Solutions30%

Components and precision fluid-management systems used in medical devices such as catheters, plus fluid dispensing for other industries.

Advanced Technology Solutions22%

Equipment used in semiconductor and electronics manufacturing, including chip packaging and testing steps.

Competitive moat

Switching costs · Narrow

Once a customer validates a production line around Nordson's dispensing equipment — calibrated to exact fluid volumes and tolerances, sometimes under regulatory approval as in medical devices — swapping to a competitor means re-validating the whole line, a costly and slow process manufacturers avoid unless something is badly wrong. That keeps replacement parts and service revenue sticky even where the original equipment sale was competitive.

What drives demand

Moderately cyclical

Demand splits between steadier end markets — packaging, medical devices, consumer nondurables — and more cyclical ones like semiconductor and electronics capital spending, which swings with chip industry investment cycles. The mix of the three segments smooths some of that cyclicality but does not remove it, particularly in the Advanced Technology segment.

Key risks

  • Cyclicality in semiconductor capital spending — The Advanced Technology Solutions segment depends on chip makers' capital equipment budgets, which are historically volatile and can swing sharply between shortage and oversupply periods.
  • Acquisition integration risk — Nordson has grown its segments partly through acquisitions; integrating acquired businesses' operations, systems and customer relationships carries execution risk and can strain expected returns.
  • Customer capital spending decisions — Equipment sales depend on customers deciding to build or upgrade production lines, decisions that can be postponed in an uncertain economic environment even when replacement parts demand continues.
  • International operations and currency exposure — A significant share of sales and manufacturing occurs outside the United States, exposing results to currency translation and to economic and trade conditions in those markets.

The case for

Buyers argue that Nordson's equipment gets embedded in validated production lines across three diversified end markets, that recurring parts and service revenue smooths the cycle, and that record fiscal 2025 results show the model compounding through both steadier and more cyclical segments at once.

The case against

Sellers fear that the Advanced Technology segment remains exposed to a genuinely volatile semiconductor capital-spending cycle, that growth built partly through acquisitions carries integration risk that can disappoint, and that a broader industrial slowdown would delay the equipment upgrades that drive the larger, steadier segments too.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$2.98B

Trailing 12 months (through 7/31/2026)

Net Income

$555M

Trailing 12 months (through 7/31/2026)

Free Cash Flow

$661M

Total Equity

$3.04B

Total Liabilities

$2.87B

Current Ratio

1.82

Interest Coverage

8.83

Debt/EBITDA

2.30

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$294.58

Current Price

$318.84

Margin of Safety

-8.2%

Fair Value Range

$226.09 - $363.07

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$349.71
Discounted cash flow (DCF):$318.31
Earnings multiple (P/E):$246.62
Graham growth formula:$331.60
Earnings power value (EPV):$109.74
Justified P/B:$123.66
Dividend discount (Gordon):$55.05
P/FFO, funds from operations:$161.94
Mid-cycle earnings:$273.10
Revenue multiple:$153.55
Last Earnings Surprise:+2.66%

Valuation Metrics

P/E Ratio

32.30

ROE

15.9%

P/B Ratio

5.43

P/FCF

24.53

Gross Margin

55.3%

ROIC

12.1%

Profitability Radar

Value Creation (Economic Moat)

ROIC

12.1%

WACC

9.5%

ROIC − WACC

+2.6 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (20)

  • EPS shows upward trend
  • EPS CAGR 5.49%
  • Price CAGR 11.11%
  • ROIC 12.1%
  • Gross margin 55.3%
  • P/FCF 24.53
  • Debt/equity ratio
  • Operating margin 26.9%
  • Positive free cash flow
  • CapEx intensity
  • Current ratio
  • Interest coverage
  • Debt/EBITDA
  • Return on tangible assets
  • ROE 17.6%
  • Revenue growth 5Y 5.7%
  • Earnings quality (operating cash flow / net income) 1.39
  • Share dilution -1.2%
  • Net margin trend 18.6% vs 16.3%
  • Piotroski F-Score 7/9

Failed (6)

  • P/B ratio 5.43
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings surprise, average 0.3%
  • PEG ratio 2.18

Unavailable (1)

  • Dividend payout –

Piotroski F-Score

7/9

Strong financial health

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.39

High quality: earnings backed by cash

Share Dilution

-1.2%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Sundaram NagarajanPresident, CEO & Director62
Mr. Daniel R. HopgoodExecutive VP & CFO52
Ms. Jennifer L. McDonough J.D.Executive VP, General Counsel & Corporate Secretary53
Mr. Joseph P. KelleyExecutive VP of Industrial Precision Solutions Leader52
Mr. Joseph M. RutledgeVP & Chief Accounting Officer45
Ms. Lara L. MahoneyVice President of Investor Relations & Corporate Communications-
Katie ColacarroVice President of Corporate Development-
Ms. Sarah SiddiquiExecutive VP & Chief Human Resources Officer47
Mr. Justin HallExecutive Vice President of Medical & Fluid Solutions46
Mr. Matthew MatejkaSenior Director of Investor Relations-

Audit Risk

8

Board Risk

3

Compensation Risk

6

Shareholder Rights Risk

10

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2025-12-17

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-20

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-10-23

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Part 2 · The price and its context

This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Market Reaction Profile

How much NDSN moves, measured on its daily prices.

VolatilityLow

More volatile than 17% of the tracked stocks (90-day volatility).

Volatility 30d
19.2%
Volatility 90d
23.8%
Beta vs S&P 500 (1y)
0.87Correlation 0.50
Max drawdown (12m)
-14.4%
ATR (14d, % of price)
2.31%

Earnings reactions

How NDSN moved around its past quarterly results.

Next earnings release

No upcoming release on the calendar.

What usually happens

  • Over the last 12 releases the stock moved a median of 3.8% the next day, up or down.
  • Next-day moves: up 8, down 4 (out of 12).

Release history

DateWhen EPS est.EPS actualSurprise Gap 1 day5 days
Aug 19, 2026After the close2.882.86-0.5% +2.0% +8.0% +8.0%
May 20, 2026After the close2.422.37-2.2% +1.0% +3.8% +4.3%
Feb 18, 2026After the close2.993.03+1.4% +2.0% -1.8% -2.8%
Dec 10, 2025After the close2.692.73+1.5% +5.8% -0.8% +0.7%
Aug 20, 2025After the closen/an/an/a+6.1% +3.0% +5.7%
May 28, 2025After the closen/an/an/a+7.2% +6.8% +8.9%
Feb 19, 2025After the closen/an/an/a-2.7% +0.3% -3.1%
Dec 11, 2024After the closen/an/an/a-6.2% -8.2% -14.7%
Aug 21, 2024After the closen/an/an/a+2.5% +3.3% +3.4%
May 20, 2024After the closen/an/an/a-8.3% -9.4% -13.0%
Feb 21, 2024After the closen/an/an/a+0.5% +4.5% +2.0%
Dec 13, 2023After the closen/an/an/a+1.3% +3.9% +6.0%

Release dates from SEC 8-K filings.

Updated 10/24/2026

Historical statistics for educational purposes only. They are not forecasts and not investment advice.

Price reaction to the news

Latest news on NDSN and what the price did next.

Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.

Latest News

Recent headlines for NDSN.

  • 8/21/2026POSITIVE
    Thursday’s Activity, 4 Possible Friday Plays

    Nordson Corporation (NDSN) was highlighted as a potential multi-bagger opportunity in Thursday's trading session, with the NDSN Weekly $310-320 call options showing significant upside potential. The article suggests that the stock has delivered strong performance, aligning with the firm's successful track record of identifying profitable trading plays. Investors who followed this recommendation may have seen substantial gains, indicating positive momentum for the company's stock.