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NDSN — Nordson Corporation

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 23.52%
Profit Margins 18.19%
Return on Equity 17.14%
Return on Assets 7.92%
Free Float 0.05B
Dividend Yield 1.09%
Short Int % Utilisation 3.0%

2.2 Growth

Metric Value
Revenue Growth 8.5%
Free Cash Flow 0.57B
EBITDA 19.09 (Ratio)
Enterprise Value 17.39B
EV/Revenue 5.99
EV/EBITDA 19.09

Revenue growth of 8.5% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 50.23%
Risk / Std Dev (Ann.)* 20.97%
1-Year Price Return* 46.54%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $308.72
52-Week Range $211.50 – $315.68
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $2.79B $2.69B
Net income Reported net income $484.47M $467.28M
Total assets Year-end reported balance $5.92B $6.00B
Shareholders’ equity Year-end reported balance $3.04B $2.93B
Net margin Net income ÷ revenue 17.35% 17.37%
Asset turnover Revenue ÷ total assets 0.4718x 0.4482x
Equity multiplier Total assets ÷ shareholders’ equity 1.9443x 2.0466x
ROE Net margin × asset turnover × equity multiplier 15.92% 15.94%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $2.79B
Prior annual revenue $2.69B
EBIT $701.80M
Tax rate 18.94%
NOPAT = EBIT × (1 − tax rate) $568.88M
Forecast start-growth basis 3.78%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $568.88M
Add: depreciation & amortisation $150.52M
Less: capital expenditure -$58.06M
Less/(add): working-capital cash-flow movement $56.83M
Current unlevered FCFF $718.17M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 3.78% $590.40M $156.22M -$60.26M $58.98M $745.34M $712.81M
2 3.46% $610.85M $161.63M -$87.16M $61.02M $746.33M $652.81M
3 3.14% $630.04M $166.70M -$115.50M $62.94M $744.17M $595.34M
4 2.82% $647.81M $171.41M -$145.08M $64.71M $738.84M $540.60M
5 2.50% $664.00M $175.69M -$175.69M $66.33M $730.33M $488.75M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.96
Cost of equity 10.01%
Pre-tax cost of debt 4.72%
WACC 9.34%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $10.95B
Implied terminal EV / EBITDA 11.01x
Terminal value as % of enterprise value 70.09%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $2.99B
Present value of terminal value $7.01B
Indicated enterprise value $10.00B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $10.00B
Less: gross interest-bearing debt $2.09B
Add: cash and equivalents $108.44M
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $8.01B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 56,916,000.00
Share-count basis reported diluted weighted-average shares
Current market price $305.28
DCF indicative value per share $140.81
Indicative value vs. market price -53.87%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:43:17.072651 UTC; latest reported fiscal period: 2025-10-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 14.33% 25.37%
Adjusted R² 0.44 0.53
Annualised residual volatility 15.73% 14.38%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.91 (9.88) 1.14 (11.70)
Size (SMB) 0.56 (4.51) 0.38 (3.10)
Value (HML) 0.37 (3.48) -0.08 (-0.65)
Profitability (RMW) NM 0.14 (1.37)
Investment (CMA) NM 1.05 (5.85)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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