# Nordson (NDSN.US)

Canonical: https://gigainvestors.com/s/NDSN

Analysis as of: 2026-10-01T19:03:52.857Z. Financial observations: FY2008–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed. Published buy qualification: no.

Share price: $328.80 per share; close as of 2026-10-15.

Estimated value: low $97.33 per share, central $111.67 per share, high $129.60 per share. Buy at or below the central value $111.67 per share. Valuation as of 2026-10-01T19:03:52.857Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.3% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.23×

- FY2018: 0.22×

- FY2019: 0.22×

- FY2020: 0.16×

- FY2021: 0.26×

- FY2022: 0.27×

- FY2023: 0.26×

- FY2024: 0.25×

- FY2025: 0.25×

### moat: pass

- ROIC, median of available years: 35.1%

- ROIC, second-lowest year: 29.3%

- Typical minus recent gross margin: -0.4 pp

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: 12.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 43.5%

- FY2017: 31.0%

- FY2018: 39.8%

- FY2019: 35.7%

- FY2020: 27.0%

- FY2021: 45.2%

- FY2022: 47.4%

- FY2023: 34.5%

- FY2024: 29.3%

- FY2025: 33.8%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.5B

- Net income, five-year total: $2.4B

- Return on incremental invested capital: 33.2%

- Working capital / revenue, annual change: 1.7 pp

- Working capital / revenue, change between three-year averages: 13.2 pp

- Working capital / revenue, final three-year average: 34.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.03×

- FY2023: 1.00×

- FY2024: 0.99×

- FY2025: 1.00×

### management: pass

- $1 retained earnings test: 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 39.8% vs 33.8%

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: $7.4B

- Cumulative retained earnings: $2.7B

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.6%

- Per-share value change: $3.73

- Per-share value, starting three-year median: $4.73

- Per-share value, ending three-year median: $8.46

- Buybacks concentrated in cheaper years (correlation): -0.10

- Average buyback yield: 0.8%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.4B

- Cumulative net income, 10 years: $3.9B

- ROIC, first three-year median: 39.8%

- ROIC, last three-year median: 33.8%

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.48×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.31×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.6%

- FY2017: -1.8%

- FY2018: -3.7%

- FY2019: -1.3%

- FY2020: -6.9%

- FY2021: -2.4%

- FY2022: -0.0%

- FY2023: -2.9%

- FY2024: -1.5%

- FY2025: -4.0%

## Holders

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 15.1% a year for ten years · "Nordson's 2026 Outlook: Recurring Revenue Base Drives Sustained Long-Term Profitability" (finance.yahoo.com, Sep 2026) · sales +3.8%

Story as of 2026-10-03T17:10:00Z; price observation 2026-10-02.

Price needs cash profits to grow 15.1% a year for ten years

- 2025-05-28: Nordson’s (NASDAQ:NDSN) Q1 Sales Beat Estimates, Provides Encouraging Quarterly Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/nordson-nasdaq-ndsn-q1-sales-203829020.html))

- 2025-08-21: Nordson Stock Jumps After Q3 Beats Estimates -- Revenue Up 12% ([finance.yahoo.com](https://finance.yahoo.com/news/nordson-stock-jumps-q3-beats-185342180.html))

- 2025-12-12: NDSN Q3 Deep Dive: Margin Expansion Offsets Flat Sales, Cautious Outlook for Year-End ([finance.yahoo.com](https://finance.yahoo.com/news/ndsn-q3-deep-dive-margin-185052220.html))

- 2026-02-19: NDSN Q4 Deep Dive: Semiconductor and Asia Demand Drive Growth, Guidance Raised ([finance.yahoo.com](https://finance.yahoo.com/news/ndsn-q4-deep-dive-semiconductor-200604847.html))

- 2026-08-20: Nordson Stock Jumps as AI Demand Sends Backlog Soaring 35% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/nordson-stock-jumps-ai-demand-171841485.html))

- 2026-09-15: Nordson's 2026 Outlook: Recurring Revenue Base Drives Sustained Long-Term Profitability ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/nordsons-2026-outlook-recurring-revenue-235501611.html))

### Sales · FY2024–2025

sales +3.8%; source https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm; observed 2025-12-17.

- FY2016: $1.8B 

- FY2017: $2.1B 

- FY2018: $2.3B 

- FY2019: $2.2B 

- FY2020: $2.1B 

- FY2021: $2.4B 

- FY2022: $2.6B 

- FY2023: $2.6B 

- FY2024: $2.7B 

- FY2025: $2.8B 

### Gross margin · FY2025

gross margin 55.2%; source https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm; observed 2025-12-17.

- FY2016: 54.9% 

- FY2017: 55.1% 

- FY2018: 54.8% 

- FY2019: 54.3% 

- FY2020: 53.3% 

- FY2021: 56.1% 

- FY2022: 55.1% 

- FY2023: 54.2% 

- FY2024: 55.2% 

- FY2025: 55.2% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Annual sales are USD 2.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm (filed 2025-12-17); FY2025: revenue 2791687000; grossProfit 1539784000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); NDSN.US: Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, medical components, and other fluids. The Industrial Precision Solutions segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems; components and systems for thermoplastic and biopolymer melt stream; fluid components, such as nozzles, pumps, and filters; smart components that measure and control the flow, quantity and location of dispensed fluid; control systems; and product assembly solutions. It also offers automated and manual dispensing products and systems for cold materials, container coating, liquid finishing, and powder coating, as well as ultraviolet equipment. The Medical and Fluid Solutions segment offers precision manual and semi-automated dispensers, plastic molded syringes, cartridges, tips, and fluid connection components; interventional solutions for engineered shafts and interventional delivery systems, medical tubing, balloons, balloon inflators, nitinol devices, cardiovascular cannula, and biomaterial delivery; medical fluid components; and microplegia myocardial protection devices and related consumables. The Advanced Technology Solutions segment provides automated dispensing systems for high-speed, precise application of various attachment, protection, and coating fluids, and related gas plasma treatment systems; destructive and non-destructive testing technologies, such as bond testers and automated optical, acoustic microscopy, and x-ray inspection systems used in the semiconductor and printed circuit board industries; and precision measurement and control technologies. The company markets its products through direct sales force, distributors, and sales representatives. Nordson Corporation was founded in 1909 and is headquartered in Westlake, Ohio.

### Why customers stay

Margins ranged from 54.2% to 55.2% during 2023–25; it earns 35.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2023: grossProfit / revenue = 54.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2024: grossProfit / revenue = 55.2%.

- Source: https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm (filed 2025-12-17); FY2025: grossProfit / revenue = 55.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); 10-year return on capital observations [[2016,0.4354273104059062],[2017,0.31000095649586396],[2018,0.3984974714815107],[2019,0.3566164861397687],[2020,0.27049498401659766],[2021,0.45205033854993387],[2022,0.4741643514896453],[2023,0.3450853767804089],[2024,0.29260534572648733],[2025,0.3376830630897313]]; median 0.35085093146008883. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 306.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2016: growth capex 0; upkeep 60851000; owner earnings 263085000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2017: growth capex 0; upkeep 71558000; owner earnings 294930000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2018: growth capex 0; upkeep 89790000; owner earnings 374442000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2019: growth capex 0; upkeep 64244000; owner earnings 365005000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2020: growth capex 0; upkeep 50535000; owner earnings 299450000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2021: growth capex 0; upkeep 38303000; owner earnings 497191000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2022: growth capex 0; upkeep 51428000; owner earnings 530850000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2023: growth capex 0; upkeep 34583000; owner earnings 542098000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); FY2024: growth capex 0; upkeep 64410000; owner earnings 520092000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm (filed 2025-12-17); FY2025: growth capex 0; upkeep 58060000; owner earnings 557993000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Dividend observations: [[2016,56436000],[2017,63840000],[2018,72443000],[2019,82145000],[2020,88347000],[2021,97683000],[2022,125914000],[2023,150356000],[2024,161438000],[2025,179069000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm (filed 2025-12-17); FY2025: cash repurchases 306367000 USD.

### What could break it

"Changes in U.S. or international economic conditions" (SEC filing, Dec 2025)

- Source: https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm (filed 2025-12-17); Changes in U.S. or international economic conditions

### What the price says

The price assumes cash profits grow 14.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-17); Ten-year compound average after fade. Initial solved rate 0.2021634137911642. Price 329.02; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-01.

## Monthly share-price history (USD per share)

- 2016-10: $100.13 per share

- 2016-11: $106.73 per share

- 2016-12: $112.05 per share

- 2017-01: $113.53 per share

- 2017-02: $120.04 per share

- 2017-03: $122.84 per share

- 2017-04: $125.20 per share

- 2017-05: $115.88 per share

- 2017-06: $121.32 per share

- 2017-07: $127.00 per share

- 2017-08: $109.30 per share

- 2017-09: $118.50 per share

- 2017-10: $126.69 per share

- 2017-11: $128.36 per share

- 2017-12: $146.40 per share

- 2018-01: $143.72 per share

- 2018-02: $134.07 per share

- 2018-03: $136.34 per share

- 2018-04: $128.60 per share

- 2018-05: $125.63 per share

- 2018-06: $128.41 per share

- 2018-07: $134.11 per share

- 2018-08: $139.02 per share

- 2018-09: $138.90 per share

- 2018-10: $122.67 per share

- 2018-11: $120.41 per share

- 2018-12: $119.35 per share

- 2019-01: $129.64 per share

- 2019-02: $135.76 per share

- 2019-03: $132.52 per share

- 2019-04: $145.95 per share

- 2019-05: $125.62 per share

- 2019-06: $141.31 per share

- 2019-07: $141.66 per share

- 2019-08: $135.96 per share

- 2019-09: $146.26 per share

- 2019-10: $156.81 per share

- 2019-11: $165.83 per share

- 2019-12: $162.84 per share

- 2020-01: $168.86 per share

- 2020-02: $145.30 per share

- 2020-03: $135.07 per share

- 2020-04: $160.91 per share

- 2020-05: $188.35 per share

- 2020-06: $189.71 per share

- 2020-07: $193.63 per share

- 2020-08: $186.49 per share

- 2020-09: $191.82 per share

- 2020-10: $193.43 per share

- 2020-11: $203.81 per share

- 2020-12: $200.95 per share

- 2021-01: $178.99 per share

- 2021-02: $192.41 per share

- 2021-03: $198.68 per share

- 2021-04: $211.41 per share

- 2021-05: $221.69 per share

- 2021-06: $219.51 per share

- 2021-07: $226.13 per share

- 2021-08: $238.60 per share

- 2021-09: $238.15 per share

- 2021-10: $254.21 per share

- 2021-11: $254.19 per share

- 2021-12: $255.27 per share

- 2022-01: $232.54 per share

- 2022-02: $226.49 per share

- 2022-03: $227.08 per share

- 2022-04: $215.69 per share

- 2022-05: $217.88 per share

- 2022-06: $202.44 per share

- 2022-07: $230.99 per share

- 2022-08: $227.17 per share

- 2022-09: $212.27 per share

- 2022-10: $225.00 per share

- 2022-11: $236.49 per share

- 2022-12: $237.72 per share

- 2023-01: $243.30 per share

- 2023-02: $219.64 per share

- 2023-03: $222.26 per share

- 2023-04: $216.31 per share

- 2023-05: $217.93 per share

- 2023-06: $248.18 per share

- 2023-07: $251.61 per share

- 2023-08: $244.14 per share

- 2023-09: $223.17 per share

- 2023-10: $212.59 per share

- 2023-11: $235.34 per share

- 2023-12: $264.16 per share

- 2024-01: $251.72 per share

- 2024-02: $265.65 per share

- 2024-03: $274.54 per share

- 2024-04: $258.19 per share

- 2024-05: $234.72 per share

- 2024-06: $231.94 per share

- 2024-07: $250.33 per share

- 2024-08: $256.56 per share

- 2024-09: $262.63 per share

- 2024-10: $247.89 per share

- 2024-11: $260.99 per share

- 2024-12: $209.24 per share

- 2025-01: $220.22 per share

- 2025-02: $210.29 per share

- 2025-03: $201.72 per share

- 2025-04: $189.57 per share

- 2025-05: $211.99 per share

- 2025-06: $214.37 per share

- 2025-07: $214.21 per share

- 2025-08: $225.09 per share

- 2025-09: $226.95 per share

- 2025-10: $231.95 per share

- 2025-11: $237.66 per share

- 2025-12: $240.43 per share

- 2026-01: $274.53 per share

- 2026-02: $293.44 per share

- 2026-03: $266.06 per share

- 2026-04: $288.45 per share

- 2026-05: $287.33 per share

- 2026-06: $301.69 per share

- 2026-07: $297.78 per share

- 2026-08: $321.72 per share

- 2026-09: $327.85 per share

## Annual estimated value (USD per share)

- FY2020: low $61.45 per share, central $72.58 per share, high $84.02 per share

- FY2021: low $81.29 per share, central $96.69 per share, high $111.91 per share

- FY2022: low $87.11 per share, central $102.33 per share, high $118.76 per share

- FY2023: low $95.57 per share, central $110.49 per share, high $128.26 per share

- FY2024: low $89.29 per share, central $102.39 per share, high $118.80 per share

- FY2025: low $95.25 per share, central $109.28 per share, high $126.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/72331/000007233125000144/ndsn-20251031.htm); period 2025-10-31, filed 2025-12-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.