Company Reports

Narrow-moat-rated Nordson's fiscal first-quarter adjusted EPS of $2.21 came in above management's $2.00-$2.10 guidance range, thanks to strong incremental margins driven by favorable mix shift and factory efficiencies. While nothing in Nordson's fiscal first-quarter earnings release materially alters our long-term thesis, we've modestly raised our fair value estimate to $240 from $238 due to time value of money.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

Narrow-moat-rated Nordson ended its fiscal 2023 on a solid note, as its full-year revenue of $2,629 million and adjusted EPS of $9.03 both came in above our estimates of $2,622 million and $9.00, respectively. After rolling our model forward one year, we’ve raised our fair value estimate to $238 from $237, mostly due to time value of money.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

Narrow-moat-rated Nordson’s fiscal third-quarter adjusted EPS declined by 6% from the prior-year period, from $2.49 to $2.35, as the firm continued to face headwinds in the semiconductor and biopharma end markets. We’ve maintained our $237 fair value estimate, as our slightly more muted near-term revenue growth projections were offset by time value of money.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

We do not expect any significant change to our $237 fair value estimate or our Standard capital allocation rating for narrow-moat-rated Nordson after the company announced the acquisition of ARAG Group. The all-cash transaction implies a EUR 960 million enterprise value for ARAG, which reflects a multiple of around 16.5 times 2023 EBITDA (and 13.5 times 2025 EBITDA including synergies). Nordson expects the deal to close in its fiscal fourth quarter.

Narrow-moat Nordson posted solid fiscal second-quarter results, featuring a nearly 18% year-over-year increase in adjusted EPS, from $1.88 to $2.21. While nothing in the earnings release materially alters our long-term outlook, we've bumped our fair value estimate up to $237 from $235 due to time value of money.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

We are lowering our fair value estimate for narrow-moat-rated Nordson to $235 from $239 after the company reported its fiscal first-quarter earnings. Nordson’s adjusted EPS of $1.95 decreased by roughly 6% from $2.07 in the prior-year period, as the company grappled with foreign currency headwinds as well as a surge in COVID-19 cases in China. Our fair value reduction reflects our slightly more muted near-term revenue growth and operating margin projections, partially offset by time value of money.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

Narrow-moat Nordson ended its fiscal 2022 on a solid note, as its full-year adjusted EPS of $9.43 came in $0.07 above our expectations. After rolling our model forward one year, we’ve increased our fair value estimate for Nordson to $239 from $238, mostly due to time value of money.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

Narrow-moat-rated Nordson posted solid fiscal third-quarter results, with adjusted EPS of $2.49 up 3% year over year. We’ve bumped our fair value estimate up to $238 from $235, mostly due to time value of money, and view shares as fairly valued at current levels.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

We’ve increased our fair value estimate for narrow-moat-rated Nordson to $235 from $231 after the company announced solid fiscal second-quarter results, featuring a 15% year-over-year increase in adjusted EPS, from $2.12 to $2.43. Our fair value adjustment reflects Nordson’s solid performance, a more optimistic near-term outlook, and time value of money.

We are maintaining our $231 fair value estimate for narrow-moat-rated Nordson as nothing its fiscal first-quarter earnings release materially alters our long-term outlook for the firm. Nordson increased its fiscal first-quarter adjusted EPS by 57% year over year, from $1.32 to $2.07. The stock has pulled back about 11% year to date, and we now view Nordson as fairly valued.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.

Nordson is a leading manufacturer of equipment used for dispensing adhesives, coatings, sealants, and other materials. The company enjoys strong market share across its business lines, and its products are often used in niche applications where competition is limited. Nordson differentiates itself by offering highly engineered and customizable solutions which perform a mission-critical role in a customer’s manufacturing process.