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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
15.0%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.46%
Trailing Yield
$1.46
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
46%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, NORDSON CORP (NDSN) receives a "Hold" rating with a composite score of 48.9/100, ranked #1269 out of 4446 stocks. Key factor scores: Quality 50/100, Value 42/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
NORDSON CORP (NDSN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NORDSON CORP Do?
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. NORDSON CORP (NDSN) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Sundaram Nagarajan and employs approximately 7,330 people, headquartered in Westlake, Ohio. With a market capitalization of $14.9B, NDSN is one of the prominent companies in the Industrials sector.
NORDSON CORP (NDSN) Stock Rating — Hold (April 2026)
As of April 2026, NORDSON CORP receives a Hold rating with a composite score of 48.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NDSN ranks #1,269 out of 4,446 stocks in our coverage universe. Within the Industrials sector, NORDSON CORP ranks #200 of 752 stocks, placing it in the upper half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NDSN Stock Price and 52-Week Range
NORDSON CORP (NDSN) currently trades at $275.28. The stock lost $0.97 (0.4%) in the most recent trading session. The 52-week high for NDSN is $305.28, which means the stock is currently trading -9.8% from its annual peak. The 52-week low is $165.03, putting the stock 66.8% above its annual trough. Recent trading volume was 312K shares, suggesting relatively thin trading activity.
Is NDSN Overvalued or Undervalued? — Valuation Analysis
NORDSON CORP (NDSN) carries a value factor score of 42/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 31.76x, compared to the Industrials sector average of 28.33x — a premium of 12%. The price-to-book ratio stands at 4.76x, versus the sector average of 2.23x. The price-to-sales ratio is 5.47x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, NDSN trades at 25.30x EV/EBITDA, versus 5.70x for the sector.
Overall, NDSN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
NORDSON CORP Profitability — ROE, Margins, and Quality Score
NORDSON CORP (NDSN) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 15.0%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 7.8% versus the sector average of 3.3%.
On a margin basis, NORDSON CORP reports gross margins of 54.7%, compared to 35.8% for the sector. The operating margin is 24.4% (sector: 6.2%). Net profit margin stands at 17.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at 1.2% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NDSN Debt, Balance Sheet, and Financial Health
NORDSON CORP has a debt-to-equity ratio of 64.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.72x, indicating strong short-term liquidity. Total debt on the balance sheet is $1.98B. Cash and equivalents stand at $108M.
NDSN has a beta of 1.09, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for NORDSON CORP is 76/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
NORDSON CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, NORDSON CORP reported revenue of $2.71B and earnings per share (EPS) of $2.39. Net income for the quarter was $466M. Gross margin was 54.7%. Operating income came in at $664M.
In Q1 2026, NORDSON CORP reported revenue of $669M and earnings per share (EPS) of $2.39. Net income for the quarter was $133M. Gross margin was 54.7%. Revenue grew 8.8% year-over-year compared to Q1 2025. Operating income came in at $166M.
In FY 2025, NORDSON CORP reported revenue of $2.79B and earnings per share (EPS) of $8.56. Net income for the quarter was $484M. Gross margin was 55.2%. Revenue grew 3.8% year-over-year compared to FY 2024. Operating income came in at $712M.
In Q3 2025, NORDSON CORP reported revenue of $742M and earnings per share (EPS) of $2.23. Net income for the quarter was $126M. Gross margin was 54.8%. Revenue grew 12.1% year-over-year compared to Q3 2024. Operating income came in at $188M.
Over the past 8 quarters, NORDSON CORP has demonstrated a growth trajectory, with revenue expanding from $662M to $2.71B. Investors analyzing NDSN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NDSN Dividend Yield and Income Analysis
NORDSON CORP (NDSN) currently pays a dividend yield of 1.5%. At this yield, a $10,000 investment in NDSN stock would generate approximately $$146.00 in annual dividend income. With a net margin of 17.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
NDSN Momentum and Technical Analysis Profile
NORDSON CORP (NDSN) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NDSN vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing NDSN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NDSN vs S&P 500 (SPY) comparison to assess how NORDSON CORP stacks up against the broader market across all factor dimensions.
NDSN Next Earnings Date
No upcoming earnings date has been announced for NORDSON CORP (NDSN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NDSN? — Investment Thesis Summary
NORDSON CORP presents a balanced picture with arguments on both sides. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 76/100) reduces downside risk.
In summary, NORDSON CORP (NDSN) earns a Hold rating with a composite score of 48.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NDSN stock.
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Institutional Research Dossier
NORDSON CORP (NDSN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Nordson Corporation (NDSN). While Nordson exhibits strong profitability and operates in niche markets with decent growth prospects, its current valuation appears stretched, particularly when compared to its sector peers. The company's premium valuation, coupled with only moderate revenue growth, suggests that much of its future potential is already priced into the stock, limiting potential upside for investors at current levels.
Nordson's impressive margins and returns on equity are undeniable strengths, reflecting its ability to command premium pricing and efficiently allocate capital. However, the relatively high multiples, especially the P/E and EV/EBITDA ratios, warrant caution. We believe investors should await a more favorable entry point before considering a more bullish stance, as the current risk/reward profile appears balanced.
Business Strategy & Overview
Nordson Corporation operates through two primary segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment focuses on dispensing, coating, and laminating systems for a wide array of applications, including adhesives, liquids, and powders. This segment serves diverse industries, from packaging and disposable products to automotive and general industrial manufacturing. The ATS segment, on the other hand, caters to more specialized applications, providing automated dispensing systems, plasma treatment systems, and bond testing equipment primarily for the semiconductor and printed circuit board industries. This segment also includes medical device components and fluid management systems.
Nordson's strategic positioning revolves around providing highly engineered solutions that improve efficiency, reduce waste, and enhance product quality for its customers. The company emphasizes innovation and invests in research and development to maintain a technological edge in its chosen markets. This focus on specialized applications and customized solutions allows Nordson to command premium pricing and build strong relationships with its customers. Furthermore, Nordson's global presence enables it to serve multinational corporations and capitalize on growth opportunities in emerging markets.
The company's revenue generation is diversified across various end markets, which helps to mitigate the impact of cyclical downturns in any single industry. However, the semiconductor industry, a key market for the ATS segment, can be particularly volatile. Nordson's strategy of acquiring complementary businesses has also been instrumental in expanding its product portfolio and geographic reach. These acquisitions often target companies with specialized technologies or strong market positions in niche areas, further strengthening Nordson's competitive advantage.
Looking ahead, Nordson's growth strategy is centered on organic growth through innovation and market penetration, as well as continued strategic acquisitions. The company is focused on expanding its presence in high-growth markets, such as medical devices and electronics, and leveraging its technological expertise to develop new and improved solutions for its customers. Nordson's emphasis on sustainability and environmentally friendly technologies also aligns with growing customer demand for more sustainable manufacturing processes.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.2%
Sector: 6.4%
-81% VS SCTR
Economic Moat Analysis
Nordson possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's reputation for high-quality, reliable products and its extensive application expertise create a barrier to entry for competitors. Customers often rely on Nordson's solutions to ensure consistent product quality and efficient manufacturing processes, making them hesitant to switch to unproven alternatives. This is particularly true in industries where precision and reliability are paramount, such as semiconductor manufacturing and medical device production.
The intangible assets associated with Nordson's brand and reputation are built over decades of experience and innovation. The company has a long track record of developing cutting-edge technologies and providing exceptional customer service, which has fostered strong brand loyalty among its customer base. This brand equity allows Nordson to command premium pricing and maintain its market share in competitive markets. Furthermore, the company's intellectual property, including patents and proprietary know-how, provides a degree of protection against direct competition.
Switching costs also contribute to Nordson's narrow moat. Integrating Nordson's equipment and systems into a customer's existing manufacturing processes often requires significant investment in training and process optimization. Once these systems are in place, switching to a different supplier can be costly and disruptive, as it may require retraining personnel, reconfiguring production lines, and validating new processes. This creates a degree of stickiness that makes it more difficult for competitors to displace Nordson.
However, the moat is not wide due to the presence of viable competitors and the potential for technological disruption. While Nordson holds a strong position in many of its chosen markets, it faces competition from both large, established players and smaller, more specialized companies. Furthermore, advancements in technology could potentially render some of Nordson's existing solutions obsolete, requiring the company to continually innovate and adapt to changing market conditions. Therefore, while Nordson enjoys certain competitive advantages, these advantages are not insurmountable and require ongoing investment and strategic execution to maintain.
Financial Health & Profitability
Nordson's financial health is generally strong, characterized by robust profitability, healthy margins, and solid cash flow generation. The company's gross margin consistently hovers around 55%, significantly exceeding the sector average of 35.8%. This reflects Nordson's ability to command premium pricing for its specialized solutions and effectively manage its cost structure. Similarly, the operating margin of approximately 25% is substantially higher than the sector average of 6.2%, indicating superior operational efficiency.
The company's return on equity (ROE) of 15.0% also surpasses the sector average of 9.2%, demonstrating its ability to generate attractive returns on shareholder equity. This is a testament to Nordson's efficient capital allocation and its focus on high-margin businesses. However, the company's revenue growth of 1.2% is significantly lower than the sector average of 6.6%, suggesting that Nordson may be facing challenges in expanding its top line at the same pace as its peers.
Nordson's balance sheet carries a moderate level of debt, with a debt-to-equity ratio of 64.00, which is slightly below the sector average of 70.00. The company's current ratio of 2.72 indicates a strong liquidity position, suggesting that it has ample resources to meet its short-term obligations. Furthermore, Nordson generates substantial free cash flow, providing it with the financial flexibility to invest in organic growth initiatives, pursue strategic acquisitions, and return capital to shareholders through dividends and share repurchases.
Analyzing the quarterly financial history reveals a consistent pattern of profitability and margin stability. While revenue growth has been somewhat uneven, the company has consistently maintained its high gross and operating margins. This suggests that Nordson's business model is resilient and that it is able to effectively manage its cost structure even in challenging economic environments. However, the lack of significant revenue growth in recent periods is a concern that warrants close monitoring.
Valuation Assessment
Nordson's valuation appears stretched when compared to its sector peers and its historical performance. The company's P/E ratio of 109.9x is significantly higher than the sector average of 27.7x, indicating that investors are paying a substantial premium for its earnings. Similarly, the EV/EBITDA ratio of 25.0x is considerably higher than the sector average of 5.7x, suggesting that the company is overvalued relative to its earnings before interest, taxes, depreciation, and amortization.
While Nordson's strong profitability and high margins justify a premium valuation to some extent, the magnitude of the premium appears excessive. The company's relatively low revenue growth rate does not support such a high multiple, suggesting that much of its future potential is already priced into the stock. Furthermore, the current valuation leaves little room for error, as any disappointment in future earnings or growth could lead to a significant correction in the stock price.
A discounted cash flow (DCF) analysis would be required to determine a more precise fair value estimate. However, based on the available data and the company's current valuation multiples, it appears that the stock is trading at a premium to its intrinsic value. This suggests that investors should exercise caution and await a more favorable entry point before considering a long-term investment in Nordson.
The Hold rating reflects our belief that the stock is fairly valued at current levels, taking into account its strengths and weaknesses. While Nordson is a well-managed company with a strong track record of profitability, its high valuation and relatively low revenue growth limit its upside potential. We believe that investors should remain on the sidelines until the stock price more accurately reflects its intrinsic value.
Risk & Uncertainty
Several risks and uncertainties could potentially impact Nordson's future performance. One key risk is the cyclical nature of some of its end markets, particularly the semiconductor industry. Downturns in the semiconductor market could lead to reduced demand for Nordson's ATS segment products, negatively impacting its revenue and profitability. The company's reliance on a few key customers also poses a concentration risk. The loss of a major customer could have a significant impact on its financial results.
Competition is another significant risk. Nordson faces competition from both large, established players and smaller, more specialized companies. Increased competition could lead to pricing pressure and reduced market share, negatively impacting its profitability. Technological disruption also poses a threat. Advancements in technology could render some of Nordson's existing solutions obsolete, requiring the company to continually innovate and adapt to changing market conditions. Failure to keep pace with technological advancements could result in a loss of competitive advantage.
Acquisition integration risk is also a factor. Nordson has a history of acquiring complementary businesses, and these acquisitions can be complex and challenging to integrate. Failure to successfully integrate acquired businesses could lead to cost overruns, operational inefficiencies, and a loss of synergies. Furthermore, the company's international operations expose it to currency exchange rate fluctuations and geopolitical risks. Unfavorable currency movements could negatively impact its revenue and profitability, while geopolitical instability could disrupt its operations and supply chain.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNordson's consistent profitability and high margins demonstrate its ability to command premium pricing and efficiently manage its cost structure, justifying a premium valuation.
BULL VIEWThe company's strategic acquisitions and focus on high-growth markets, such as medical devices and electronics, position it for continued growth and market leadership.
The Bear Case
BEAR VIEWNordson's high valuation multiples, particularly its P/E and EV/EBITDA ratios, are unsustainable given its relatively low revenue growth.
BEAR VIEWThe cyclical nature of the semiconductor industry and the company's reliance on a few key customers expose it to significant downside risk.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NDSN and 4,400+ other equities.
NORDSON CORP exhibits a 366% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.8%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
54.7%
Sector: 35.8%
Operating Margin
Core business profitability
24.4%
Sector: 6.2%
Net Margin
Bottom-line profitability
17.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $146 annually in dividends at the current trailing rate.
