📊 NDSN Key Takeaways
Is Nordson Corp. (NDSN) a Good Investment?
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.
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.
Why Buy Nordson Corp. Stock? 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
- 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
- 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
- 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
- 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
- Interest coverage
- Operating margin trend
Nordson Corp. (NDSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.72x 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 |
|---|---|---|---|
| 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.
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 Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 68% combined 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. 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: 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. 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 $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 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 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).