Nordson is organized into three segments:
- Adhesive dispensing systems. This group delivers precision dispensing technology including hot melt equipment and hot melt applicators to diverse industries including: Nonwovens, Packaging, Paper and paperboard converting, Product assembly, and Web coating systems
- Advanced technology systems. This group develops products that are used in production processes, such as surface preparation, dispensing of material, curing of dispensed material, bond testing and X-ray inspection, and engages with electronic and related high-tech industries that use the following systems: Dispensing systems, Surface preparation, Bond testing and inspection systems, and Fluid management.
- Industrial coating systems. This group provides both standard and highly customized equipment used primarily for applying coatings, paint, finishes, sealants and other materials. This group primarily serves the consumer durables market with the following systems: Powder coating systems, Container coating and curing systems, Automotive systems, Liquid finishing systems, and Curing and drying systems
Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems for dispensing and processing adhesives, coatings, polymers, sealants, biomaterials, fluid management, testing and inspection, surface treatment, and curing. Its Adhesive Dispensing Systems segment provides equipment to apply adhesives, lotions, liquids, and fibers to disposable products; automated adhesive dispensing systems for packaged goods industries; adhesive and sealant dispensing systems to bond and seal plastics, metal, and wood products in the paper and paperboard converting industries; laminating and coating systems to manufacture continuous-roll goods in nonwovens, textile, and paper industries; and components and systems used in plastic extrusion and injection molding processes. The company’s Advanced Technology Systems segment offers automated dispensing systems for attachment, protection, and coating of fluids and related gas plasma treatment systems for cleaning and conditioning surfaces prior to dispense; precision manual and semi-automated dispensers, plastic molded syringes, cartridges tips, and fluid connection components for applying and controlling the flow of adhesives, sealants, lubricants, and biomaterials; and bond testing and automated optical and X-ray inspection systems. This segment serves electronics, medical, and related industries. Its Industrial Coating Systems segment provides automated and manual dispensing systems to apply component adhesives and sealant materials; liquid paints and coatings to consumer and industrial products; ultraviolet equipment to cure and dry operations for specialty coatings, semiconductor materials, and paints; and powder paints and coatings to various metal, plastic, and wood products. The company markets its products in the United States and internationally through direct sales force, distributors, and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio. (Daily Chart)
11 February 2015
1yr Target $85.30
1yr Cap Gain 12.08%
1yr Tot Return 13.23%
Market Cap $4.72 Bil
3yr DivGR 12.49%
5yr DivGR 16.67%
Payout Ratio 19.60%
EPS (ttm) $3.85
EPS next yr $4.70
Forward P/E 16.21
Sales $1.70 Bil
Income $246.80 Mil
Profit Margin 14.50%
This is the kind of company I want in my portfolio. Solid dividend growth rate, low payout ratio, inexpensive P/E ratio, nice return on equity, and solid profit margin. The only blemish (if you even consider this one) is the low dividend yield. I generally like to buy companies that have dividend yields of 2% or more but this company, with a payout ratio of less that 20%, has plenty of room to increase their dividend for years to come.
I find this company extremely appealing and intend to start a position in this company as quickly as funds become available.