📊 NDSN Key Takeaways
Is Nordson Corp. (NDSN) a Good Investment?
Nordson demonstrates exceptional operational quality with 25.8% operating margins and robust free cash flow generation (293.4M annually, 20.8% FCF margin), supported by a solid balance sheet and strong liquidity. However, net income stagnation despite 3.8% revenue growth signals margin compression requiring monitoring, though the company's strong cash generation and conservative leverage profile provide downside protection.
Nordson shows strong profitability and cash generation, with ~25% operating margin and an 18% FCF margin supporting reinvestment and balance sheet resilience. Growth is modest and net income is flat, while interest coverage of 2.8x and low ROE/ROA temper near-term upside. Hold pending clearer acceleration in organic growth and improved leverage coverage.
Nordson Corp. Key Strengths (NDSN)
- Exceptional free cash flow generation and conversion (20.8% FCF margin, 293.4M annually)
- Strong operational efficiency with 25.8% operating margins and 17.8% net margins
- Excellent liquidity position (2.60x current ratio, 1.65x quick ratio) with conservative leverage (0.59x debt/equity)
- Healthy interest coverage ratio (6.0x) indicating comfortable debt servicing capacity
- EPS growth of 4.9% despite flat net income suggests ongoing capital discipline
- High margins (44% gross, 25% operating)
- Strong free cash flow and low capex needs (18.4% FCF margin)
- Solid liquidity profile (2.72x current, 1.74x quick) and moderate leverage (0.64x D/E)
NDSN Stock Risks: Nordson Corp. Investment Risks
- Net income flat YoY (0% growth) despite 3.8% revenue growth indicates margin compression or expense pressures
- Moderate returns on capital (ROE 7.8%, ROA 4.2%) suggest capital is not generating exceptional value
- Low cash balance (102M) relative to 6.0B asset base may constrain major strategic investments or acquisitions
- Modest revenue growth rate (3.8%) suggests limited organic expansion in core markets
- 1.9B long-term debt represents significant fixed obligations
- Low interest coverage (2.8x) with limited cash versus debt
- Modest revenue growth (+3.8% YoY) and flat net income
- Low ROE/ROA indicating subdued capital efficiency
Key Metrics to Watch
- Net income growth trajectory and margin recovery
- Operating margin sustainability and cost management
- Revenue growth acceleration in core segments
- Free cash flow consistency and capital deployment decisions
- Return on invested capital and asset utilization efficiency
- Interest coverage
- Operating margin trend
Nordson Corp. (NDSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.60x current ratio provides a solid financial cushion.
NDSN Profit Margin, ROE & Profitability Analysis
NDSN vs Industrial Sector: How Nordson Corp. Compares
How Nordson Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nordson Corp. Stock Overvalued? NDSN Valuation Analysis 2026
Based on fundamental analysis, Nordson Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nordson Corp. Balance Sheet: NDSN Debt, Cash & Liquidity
NDSN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nordson Corp.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.46 reflects profitable operations.
NDSN Revenue Growth, EPS Growth & YoY Performance
NDSN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $682.9M | $94.7M | $1.97 |
| Q1 2026 | $615.4M | $94.7M | $1.65 |
| Q3 2025 | $661.6M | $94.7M | $2.04 |
| Q2 2025 | $650.6M | $94.7M | $1.97 |
| Q1 2025 | $615.4M | $94.7M | $1.65 |
| Q3 2024 | $648.7M | $104.3M | $2.04 |
| Q2 2024 | $650.2M | $104.3M | $2.05 |
| Q1 2024 | $610.5M | $104.3M | $1.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nordson Corp. Dividends, Buybacks & Capital Allocation
NDSN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nordson Corp. (CIK: 0000072331)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NDSN
What is the AI rating for NDSN?
Nordson Corp. (NDSN) has a Combined AI Grade of A from Claude (A) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NDSN's key strengths?
Claude: Exceptional free cash flow generation and conversion (20.8% FCF margin, 293.4M annually). Strong operational efficiency with 25.8% operating margins and 17.8% net margins. ChatGPT: High margins (44% gross, 25% operating). Strong free cash flow and low capex needs (18.4% FCF margin).
What are the risks of investing in NDSN?
Claude: Net income flat YoY (0% growth) despite 3.8% revenue growth indicates margin compression or expense pressures. Moderate returns on capital (ROE 7.8%, ROA 4.2%) suggest capital is not generating exceptional value. ChatGPT: Low interest coverage (2.8x) with limited cash versus debt. Modest revenue growth (+3.8% YoY) and flat net income.
What is NDSN's revenue and growth?
Nordson Corp. reported revenue of $1.4B.
Does NDSN pay dividends?
Nordson Corp. pays dividends, with $91.6M distributed to shareholders in the trailing twelve months.
Where can I find NDSN SEC filings?
Official SEC filings for Nordson Corp. (CIK: 0000072331) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NDSN's EPS?
Nordson Corp. has a diluted EPS of $4.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NDSN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Nordson Corp. has a A grade with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NDSN stock overvalued or undervalued?
Valuation metrics for NDSN: ROE of 7.8% (sector avg: 15%), net margin of 17.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NDSN's AI grade for 2026?
Our dual AI analysis gives Nordson Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NDSN's free cash flow?
Nordson Corp.'s operating cash flow is $321.1M, with capital expenditures of $27.7M. FCF margin is 20.8%.
How does NDSN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 17.8% (avg: 10%), ROE 7.8% (avg: 15%), current ratio 2.60 (avg: 1.8).