Nordson Story

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:3em;'>NDS</div>
NDSN -- USA Stock  

USD 192.10  1.77  0.91%

It looks like Barnes will be up for a correction way faster as its share price whent up 4.20% today to Nordson's 1.0965%. As many rational traders are trying to avoid industrials space, it makes sense to outline Nordson a little further and understand how it stands against Barnes and other similar entities. We are going to inspect some of the competitive aspects of both Nordson and Barnes.
Published over a month ago
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Our viewpoint on Nordson (NASDAQ:NDSN) and Barnes (NYSE:B)?
By analyzing existing basic indicators between Nordson and Barnes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Barnes with a short position in Nordson. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Nordson has an asset utilization ratio of 88.76 percent. This suggests that the company is making $0.89 for each dollar of assets. An increasing asset utilization means that Nordson is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Nordson or Barnes is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Nordson 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 $0.87 per share.
Dividend Yield is expected to rise to 0.007847 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (85.8 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-79.5 M-85.8 M
Dividend Yield 0.0072  0.007847 
Dividends per Basic Common Share 1.76  1.45 
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. Please check the breakdown between Nordson's total debt and its cash.

What do experts say?

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. It is good to see analyst projects for Nordson, but it might be worth checking our own buy vs. sell analysis

Correlation Between Nordson and Barnes Group

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Nordson together with similar or unrelated positions with a negative correlation. For example, you can also add Barnes to your portfolio. If Barnes is not perfectly correlated to Nordson it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Nordson for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between NDSN and B for more information.

Note

Are you currently holding both Nordson and Barnes in your portfolio? Please note if you are using this as a pair-trade strategy between Nordson and Barnes, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Nordson exotic insider transaction detected

Legal trades by Nordson insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Nordson insider trading alert for general transaction of employee stock options (right to buy) by Gina Beredo, Exec. VP Gen. Counsel & Sec., on 7th of January 2021. This event was filed by Nordson Corp with SEC on 2021-01-07. Statement of changes in beneficial ownership - SEC Form 4. Gina Beredo currently serves as vice president general counsel and secretary of Nordson [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Nordson revenue. Based on the latest financial disclosure, Nordson reported 2.15 B of revenue. This is 38.55% lower than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 77.21% higher than that of Nordson. As for Barnes we see revenue of 1.21 B, which is much higher than that of the Specialty Industrial Machinery

Nordson2.15 Billion
Sector0.0
Barnes1.21 Billion
2.1 B
Nordson
Sector
1.2 B
Barnes

Nordson may start a throwback in January

Latest maximum drawdown is at 7.55. Nordson has relatively low volatility with skewness of -0.22 and kurtosis of -0.18. However, we advise all investors to independently investigate Nordson to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Perspective on Nordson

When is the right time to buy or sell Nordson? Buying stocks such as Nordson isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. To conclude, as of the 15th of December 2020, we believe that at this point, Nordson is very steady with low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our concluding 30 days 'Buy-vs-Sell' recommendation on the company is Strong Hold.

About Contributor

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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