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Nordson Corp NDSN

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Nordson Is Well-Positioned to Deliver Profitable Growth; Raising FVE

Analyst Note

| Krzysztof Smalec, CFA |

Following Nordson’s 2021 investor day, we've raised our fair value estimate for the narrow-moat-rated industrial firm to $200 from $190. The fair value increase is primarily driven by more optimistic long-term revenue growth projections. Management expects sales to grow at an over 7% CAGR over the next five years, including over 4% organic growth and an over 3% boost from acquisitions. Furthermore, the company is targeting an EBITDA margin of at least 30% by 2025, which would represent a roughly 300-basis-point margin expansion from 2020 levels.

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Company Profile

Business Description

Nordson is a manufacturer of equipment (including pumps, valves, dispensers, applicators, filters, and pelletizers, among other equipment) used for dispensing adhesives, coatings, sealants, and other materials. The firm serves a diverse range of end markets including packaging, medical, electronics, and industrial. Nordson’s business is organized into two segments: industrial precision solutions (54% of sales in fiscal 2020) and advanced technology solutions (46% of sales in fiscal 2020). The company generated approximately $2.1 billion in revenue and $350 million in operating income in its fiscal 2020.

Contact
28601 Clemens Road
Westlake, OH, 44145
T +1 440 892-1580
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Jan 31, 2021
Fiscal Year End Oct 31, 2021
Stock Type Cyclical
Employees 7,600