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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on NDSN

Nordson's recent performance was driven by strong Q3 earnings, fueled by acquisitions, including Atrion, and robust demand in the Asia-Pacific region. The company's Medical Fluid Solutions and Advanced Technology segments exhibited significant growth. A strategic portfolio realignment aimed at emphasizing differentiated technology and proprietary medical components also contributed positively. Furthermore, Nordson increased its dividend by 5% to 82 cents, marking 62 consecutive years of dividend growth, demonstrating its strong cash flow and commitment to shareholder value.

1.c. Company Highlights

2. Nordson Corporation Delivers Record Q1 Sales and Raises Full-Year Guidance

Nordson Corporation reported record first quarter sales of $669 million, a 9% increase over the prior year, with 7% overall organic growth. The company's EBITDA reached a record $203 million, and adjusted earnings per share grew 15%. The actual EPS came out at $2.37, beating estimates of $2.36. The strong financial performance was driven by the ATS segment, which grew 20% due to momentum in the semiconductor end market.

Publication Date: Feb -20

📋 Highlights
  • Record Q1 Sales:: Achieved $669 million in sales, a 9% increase YoY, with 7% organic growth.
  • EBITDA Growth:: Generated a record $203 million EBITDA, reflecting 8% growth and 15% adjusted EPS growth.
  • ATS Segment Momentum:: 20% sales growth driven by semiconductor demand, with X-ray business gaining traction from automotive recovery.
  • Free Cash Flow:: Delivered $123 million in free cash flow, achieving a 105% conversion rate on net income.
  • Full-Year Guidance Raised:: Sales projected at $2.86B–$2.98B, adjusted EPS at $11–$11.60/share, with Q2 sales of $710M–$740M.

Segment Performance

The ATS segment was a key driver of the company's growth, with a 20% increase in sales. The medical segment also performed well, with strong incrementals north of 50% in the quarter when excluding the divestiture impact. The IPS segment returned to growth in Q1, with 3% organic growth, and is expected to continue throughout the year. As Sundaram Nagarajan mentioned, "Our ATS segment is performing well, with strong momentum in order entry and revenue shipments."

Guidance and Outlook

The company increased its full-year guidance, with sales expected in the range of $2.860 billion to $2.980 billion, and adjusted earnings expected in the range of $11 to $11.60 per diluted share. The second quarter sales are expected to be in the range of $710 million to $740 million, and adjusted earnings are forecasted to be in the range of $2.70 to $2.90 per diluted share.

Valuation

With a P/E Ratio of 31.34 and an EV/EBITDA of 21.45, the company's valuation appears to be pricing in a strong growth outlook. The ROE of 17.3% and ROIC of 12.72% indicate a strong return on equity and invested capital. Analysts estimate next year's revenue growth at 4.9%, which is lower than the current year's expected growth. The dividend yield of 1.35% and free cash flow yield of 3.94% provide a reasonable return for investors.

Conclusion on Financial Health

The company's balance sheet and cash flow position remain strong, with a $120 million cash balance and $1.9 billion net debt. The leverage ratio is 2.1x, indicating a manageable debt burden. The company generated $123 million in free cash flow, resulting in a 105% conversion rate on net income.

3. NewsRoom

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Raiffeisen Bank International AG Invests $754,000 in Nordson Corporation $NDSN

10:40

Source: defenseworld.net

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Nordson Corp (NDSN) Q1 2026 Earnings Call Highlights: Record Sales and Strong Growth in Advanced Technology Solutions

Feb -19

Source: gurufocus.com

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Nordson Corporation (NDSN) Q1 2026 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

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Nordson's Earnings Surpass Estimates in Q1, Revenues Up Y/Y

Feb -19

Source: zacks.com

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Nordson (NDSN) Reports Q1 Earnings: What Key Metrics Have to Say

Feb -19

Source: zacks.com

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Nordson (NDSN) Q1 Earnings and Revenues Top Estimates

Feb -18

Source: zacks.com

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Nordson Corporation Reports Record First Quarter Fiscal 2026 Results and Increases Full Year Guidance

Feb -18

Source: businesswire.com

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Nordson (NDSN) Q1 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Feb -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.73%)

6. Segments

Industrial Precision Solutions

Expected Growth: 2.5%

Nordson Corporation's Industrial Precision Solutions segment growth of 2.5% is driven by increasing demand for precision dispensing and conformal coating solutions in the electronics and industrial manufacturing industries, as well as the company's strategic acquisitions and investments in emerging technologies such as 3D printing and robotics.

Medical and Fluid Solutions

Expected Growth: 2.8%

Nordson Corporation's Medical and Fluid Solutions segment growth of 2.8% is driven by increasing demand for precision dispensing and fluid management solutions in the medical device and biopharmaceutical industries, as well as growth in the industrial manufacturing sector.

Advanced Technology Solutions

Expected Growth: 3.2%

Nordson's Advanced Technology Solutions segment growth of 3.2% is driven by increasing demand for precision dispensing and conformal coating solutions in the electronics industry, as well as growing adoption of industrial automation and robotics. Additionally, the segment benefits from Nordson's strong brand reputation, innovative product offerings, and strategic acquisitions.

7. Detailed Products

Adhesive Dispensing Systems

Nordson's adhesive dispensing systems provide precise and consistent application of adhesives, sealants, and lubricants in various industries such as automotive, aerospace, and consumer goods.

Coating Systems

Nordson's coating systems provide precise and consistent application of coatings, paints, and inks in various industries such as automotive, aerospace, and industrial manufacturing.

Industrial Coating Systems

Nordson's industrial coating systems provide precise and consistent application of coatings, paints, and inks in various industries such as industrial manufacturing, energy, and construction.

Plasma Treatment Systems

Nordson's plasma treatment systems provide surface modification and cleaning solutions for various industries such as medical, aerospace, and industrial manufacturing.

Precision Dispensing Systems

Nordson's precision dispensing systems provide precise and consistent application of adhesives, sealants, and lubricants in various industries such as automotive, aerospace, and consumer goods.

UV Curing Systems

Nordson's UV curing systems provide high-intensity ultraviolet light for curing inks, coatings, and adhesives in various industries such as printing, packaging, and industrial manufacturing.

X-ray Inspection Systems

Nordson's X-ray inspection systems provide non-destructive testing and inspection solutions for various industries such as aerospace, automotive, and industrial manufacturing.

8. Nordson Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Nordson Corporation operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products are not entirely unique, and some customers may find alternative solutions.

Bargaining Power Of Customers

Nordson Corporation's customers are diverse and fragmented, reducing their bargaining power. The company's products are often critical to its customers' operations, making it difficult for customers to negotiate prices or switch suppliers.

Bargaining Power Of Suppliers

Nordson Corporation relies on a few key suppliers for critical components, giving them some bargaining power. However, the company's size and diversified supply chain mitigate this risk.

Threat Of New Entrants

The barriers to entry in Nordson Corporation's markets are relatively high, including significant capital expenditures and technical expertise. This reduces the threat of new entrants.

Intensity Of Rivalry

Nordson Corporation operates in a competitive market with several established players, leading to a high intensity of rivalry. The company must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.07%
Debt Cost 4.13%
Equity Weight 59.93%
Equity Cost 8.95%
WACC 7.02%
Leverage 66.86%

11. Quality Control: Nordson Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ITT

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Nordson

A-Score: 5.1/10

Value: 2.5

Growth: 5.8

Quality: 7.1

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

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A-Score: 4.7/10

Value: 2.9

Growth: 4.9

Quality: 7.0

Yield: 3.0

Momentum: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

288.69$

Current Price

288.69$

Potential

-0.00%

Expected Cash-Flows