Should you hold on to your Nordson position?

Nordson Receivables Turnover is quite stable at the moment as compared to the past year. The company's current value of Receivables Turnover is estimated at 5.29. Inventory Turnover is expected to rise to 4.37 this year, although the value of Revenue Per Employee will most likely fall to about 256.8 K. As many of us are excited about industrials space, it is fair to outline Nordson. We will cover the possibilities of making Nordson into a steady grower in January. This post is to show some fundamental factors affecting Nordson's products and services. I will also disclose how it may impact the investing outlook for Nordson in January.
Published over a year ago
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Reviewed by Rifka Kats

Over 71.0% of Nordson shares are owned by institutional investors. Institutional ownership of Nordson refers to the amount of Nordson equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Nordson, including its current ownership diagnostics.
The performance of Nordson in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Nordson's stock prices. When investing in Nordson, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Nordson Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Nordson carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Nordson earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Nordson dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Nordson one year expected dividend income is about USD1.72 per share.
At this time, Nordson's Dividends Paid is very stable compared to the past year. As of the 25th of April 2024, Dividend Yield is likely to grow to 0.01, while Dividend Payout Ratio is likely to drop 0.31.
Last ReportedProjected for Next Year
Dividends Paid172.9 M181.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.35  0.31 
Dividend Paid And Capex Coverage Ratio 4.99  5.23 
Investing in dividend-paying stocks, such as Nordson is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Nordson must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Nordson. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Nordson's Liquidity

Nordson financial leverage refers to using borrowed capital as a funding source to finance Nordson ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nordson financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Nordson's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Nordson's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Nordson's total debt and its cash.

What do experts say about Nordson?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Another Deeper Perspective

Nordson holds a total of 58.03 Million outstanding shares. The majority of Nordson outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Nordson to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Nordson. Please pay attention to any change in the institutional holdings of Nordson as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
 2017 2018 2019 2020 (projected)
Consolidated Income377.38 M337.09 M387.65 M353.23 M
Direct Expenses1.02 B1 B901.91 M789.03 M

Ownership Breakdown

Retail Investors
17.5%
Insiders
11.75%
Institutions
70.75%
Retail Investors17.5
Insiders11.75
Institutions70.75

Nordson is projected to stay under $202 in January

Coefficient of variation is down to 2403.81. It may entail a possible volatility slide. As of the 14th of December 2020, Nordson secures the Downside Deviation of 1.56, risk adjusted performance of 0.0496, and Mean Deviation of 1.28. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nordson, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for Nordson, which can be compared to its peers in the industry. Please verify Nordson information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if Nordson is priced some-what accurately, providing market reflects its recent price of 197.79 per share. Given that Nordson has jensen alpha of 0.0133, we recommend you to check Nordson's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On Nordson

Whereas other companies in the specialty industrial machinery industry are either recovering or due for a correction, Nordson may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor quit any shares of Nordson at this time. The Nordson risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Nordson.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Nordson. Please refer to our Terms of Use for any information regarding our disclosure principles.

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