📊 NDSN Key Takeaways
Is NDSN a Good Investment? Thesis Analysis
Nordson demonstrates exceptional profitability with 44.3% gross margin, 24.9% operating margin, and 19.9% net margin, coupled with strong free cash flow generation (18.4% FCF margin) and a solid balance sheet (2.72x current ratio, 0.64x D/E). However, the concerning disconnect between profitability and capital returns (ROE 4.3%, ROA 2.2%) suggests suboptimal capital deployment, and flat net income growth despite 3.8% revenue growth indicates margin pressures that warrant monitoring.
Why Buy NDSN? Key Strengths
- Exceptional profitability margins (44.3% gross, 24.9% operating, 19.9% net) indicating strong pricing power and operational efficiency
- Robust free cash flow generation of $122.9M (18.4% of revenue) on capital-light business model with CapEx only 2.6% of sales
- Solid financial position with 2.72x current ratio, 0.64x debt-to-equity, and $120.4M cash providing operational flexibility
NDSN Investment Risks to Consider
- Critically low returns on capital (ROE 4.3%, ROA 2.2%) despite high profitability suggests significant asset inefficiency or prior acquisition underperformance
- Net income flat YoY (0.0%) with only 3.8% revenue growth indicates gross margin compression and operational headwinds
- Modest organic revenue growth at 3.8% suggests limited business momentum in industrial equipment sector
- Interest coverage of 2.8x provides limited debt service cushion in economic downturns
Key Metrics to Watch
- Operating margin trend - monitor whether 24.9% operating margin is sustainable or under structural pressure
- Return on equity and return on assets - critical to understand if capital inefficiency is temporary or structural
- Free cash flow conversion and capital allocation decisions - assess management's ability to deploy capital at attractive returns
NDSN Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.72x current ratio provides a solid financial cushion.
NDSN Profitability Ratios
NDSN vs Industrial Sector
How NORDSON CORP compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NDSN Overvalued or Undervalued?
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.
NDSN Balance Sheet & Liquidity
NDSN 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NDSN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q3 2023 | $648.7M | $104.3M | $2.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NDSN Capital Allocation
NDSN SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NDSN's key strengths?
Claude: Exceptional profitability margins (44.3% gross, 24.9% operating, 19.9% net) indicating strong pricing power and operational efficiency. Robust free cash flow generation of $122.9M (18.4% of revenue) on capital-light business model with CapEx only 2.6% of sales.
What are the risks of investing in NDSN?
Claude: Critically low returns on capital (ROE 4.3%, ROA 2.2%) despite high profitability suggests significant asset inefficiency or prior acquisition underperformance. Net income flat YoY (0.0%) with only 3.8% revenue growth indicates gross margin compression and operational headwinds.
What is NDSN's revenue and growth?
NORDSON CORP reported revenue of $669.5M.
Does NDSN pay dividends?
NORDSON CORP pays dividends, with $45.8M 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 $2.38.
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 rating reflects both perspectives for balanced insights.
Is NDSN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NORDSON CORP has a BUY rating with 72% 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 4.3% (sector avg: 15%), net margin of 19.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NDSN stock in 2026?
Our dual AI analysis gives NORDSON CORP a combined BUY rating 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 $140.4M, with capital expenditures of $17.5M. FCF margin is 18.4%.
How does NDSN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 19.9% (avg: 10%), ROE 4.3% (avg: 15%), current ratio 2.72 (avg: 1.8).