Nordson Corporation (NDSN)
Fair ValueFundamental
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
Adhesive, coating and sealant dispensing systems sold into packaging, general industrial and consumer goods production lines.
Components and precision fluid-management systems used in medical devices such as catheters, plus fluid dispensing for other industries.
Equipment used in semiconductor and electronics manufacturing, including chip packaging and testing steps.
Competitive moat
Switching costs · NarrowOnce 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 cyclicalDemand 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
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
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
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Sundaram Nagarajan | President, CEO & Director | 62 |
| Mr. Daniel R. Hopgood | Executive VP & CFO | 52 |
| Ms. Jennifer L. McDonough J.D. | Executive VP, General Counsel & Corporate Secretary | 53 |
| Mr. Joseph P. Kelley | Executive VP of Industrial Precision Solutions Leader | 52 |
| Mr. Joseph M. Rutledge | VP & Chief Accounting Officer | 45 |
| Ms. Lara L. Mahoney | Vice President of Investor Relations & Corporate Communications | - |
| Katie Colacarro | Vice President of Corporate Development | - |
| Ms. Sarah Siddiqui | Executive VP & Chief Human Resources Officer | 47 |
| Mr. Justin Hall | Executive Vice President of Medical & Fluid Solutions | 46 |
| Mr. Matthew Matejka | Senior Director of Investor Relations | - |
Audit Risk
8
Board Risk
3
Compensation Risk
6
Shareholder Rights Risk
10
Documents
- View document
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
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.
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
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 19, 2026 | After the close | 2.88 | 2.86 | -0.5% | +2.0% | +8.0% | +8.0% |
| May 20, 2026 | After the close | 2.42 | 2.37 | -2.2% | +1.0% | +3.8% | +4.3% |
| Feb 18, 2026 | After the close | 2.99 | 3.03 | +1.4% | +2.0% | -1.8% | -2.8% |
| Dec 10, 2025 | After the close | 2.69 | 2.73 | +1.5% | +5.8% | -0.8% | +0.7% |
| Aug 20, 2025 | After the close | n/a | n/a | n/a | +6.1% | +3.0% | +5.7% |
| May 28, 2025 | After the close | n/a | n/a | n/a | +7.2% | +6.8% | +8.9% |
| Feb 19, 2025 | After the close | n/a | n/a | n/a | -2.7% | +0.3% | -3.1% |
| Dec 11, 2024 | After the close | n/a | n/a | n/a | -6.2% | -8.2% | -14.7% |
| Aug 21, 2024 | After the close | n/a | n/a | n/a | +2.5% | +3.3% | +3.4% |
| May 20, 2024 | After the close | n/a | n/a | n/a | -8.3% | -9.4% | -13.0% |
| Feb 21, 2024 | After the close | n/a | n/a | n/a | +0.5% | +4.5% | +2.0% |
| Dec 13, 2023 | After the close | n/a | n/a | n/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.
- 8/21/2026PositiveThursday’s Activity, 4 Possible Friday Plays
- +1 day
- -1.1%
- +3 days
- -0.8%
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.
- 8/21/2026POSITIVEThursday’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.