About NORDSON CORP
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products. It also offers automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints.
The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.
NDSN operates in the Manufacturing | Machinery | headquartered in Westlake, Ohio | approximately 7,330 employees | led by CEO Sundaram Nagarajan.
$12.1 billion 24.1x P/E 4.1x P/B 13.6x EV/EBITDA 18.0% ROE 12.0% rev. growth 1.0% yield
NORDSON CORP earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #40 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 89/100, which places NDSN in the top 11 percent of all stocks on this measure. stability at 85/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, NDSN ranks 20th out of 50 peers, placing it in the 60th percentile. At $12.1 billion, the company is a well-established large cap.
Quality Analysis
NORDSON CORP's quality score of 83/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 18.0% exceeds the sector median of -2.0%. Gross margins of 55.0% reflect strong pricing power and competitive moats. Operating margins of 25.0% sit above the 3.0% sector average.
Net margins of 17.0% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 89/100 puts NDSN in the top 11 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 24.1x, an EV/EBITDA of 13.6x, a price-to-book of 4.1x, a price-to-sales of 4.1x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 68/100 shows NDSN is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 12.0% provides a moderate fundamental underpinning. A beta of 0.93 means NORDSON CORP moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Leverage risk. A debt-to-equity ratio of 71.00 indicates significant leverage. In a rising rate environment or economic downturn, high debt loads can amplify losses and strain cash flow. Investors should monitor the company's ability to service its obligations.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support NORDSON CORP's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
NORDSON CORP earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #40 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position NDSN above the majority of the market.
Explore the full NDSN analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
