Nordson Corporation (NDSN) declares a $0.27/share quarterly dividend. This represents a 12.5% increase from their prior dividend of $0.24. The forward yield is 1.18% and is payable on Sept. 6, for shareholders of record Aug. 23. Ex-div is Aug. 19.
(Summary) (Company) (Chart)
14 Sugust 2016
1yr Target $93.78
Payout Ratio 24.42%
1yr Cap Gain 3.52%
1yr Tot Return 4.57%
EPS (ttm) $3.93
EPS next yr $4.65
Forward P/E 19.48
EPS next 5yr 15.53%
1yr Price Support $72.21
Market Cap $5.12 Bil
Revenues $1.72 Bil
Earnings $230.80 Mil
Profit Margin 13.37%
Quick Ratio 1.80
Current Ratio 2.70
1yr RevGR -0.94%
3yr RevGR 6.14%
5yr RevGR 10.14%
1yr EarnGR -10.16%
3yr EarnGR 0.00%
5yr EarnGR 6.99%
1yr DivGR 15.00%
3yr DivGR 18.50%
5yr DivGR 18.12%
1. Adhesive Dispensing Systems Division
Nonwoven Systems - Equipment for applying adhesives, lotions and liquids to disposable products.
Packaging Systems - Automated adhesive dispensing equipment used in the food and beverage and packaged goods industries.
Polymer Processing - Precision components for plastic extrusion, injection molding, recycling, compounding, pelletizing and polymerization processes in a wide range of applications.
2. Advanced Technology Systems
Nordson ASYMTEK - Automated dispensing systems for high-speed, accurate application of a broad range of attachment, protection and coating fluids.
Nordson DAGE - High resolution x-ray inspection and bond testing equipment for analyzing the integrity of electronic connections in semiconductor packages and printed circuit board assemblies.
Nordson EFD - Precision manual and automated dispensers for applying controlled amounts of adhesives, sealants, lubricants and other assembly fluids.
Nordson MARCH - Automated gas plasma treatment systems used to clean and condition surfaces for the semiconductor, medical and printed circuit board industries.
Nordson YESTECH - Automated optical inspection and x-ray inspection systems for yield enhancement in electronic assembly industries.
Nordson MEDICAL - Single-use, engineered, plastic molded fittings, connectors, luers, valves, syringes, tips, tubing and catheters for dispensing and controlling fluids in medical equipment and procedures.
3. Industrial Coating Systems
Container Coating & Curing Systems - Automated and manual dispensing and curing systems used to treat and cure food and beverage containers.
Liquid Finishing Systems - Automated and manual dispensing systems used to apply liquid paints and coatings to consumer and industrial products.
Powder Coating Systems - Automated and manual dispensing systems used to apply powder paints and coatings to a variety of metal, plastic and wood products.
UV (Ultraviolet) Curing Systems - Products and systems for curing liquids, powders, adhesives, sealers and coatings.
Products engineered and manufactured by Nordson can be found in a number of industries - Aerospace, Agriculture, Appliances, Automotive, Chemical, Construction, Defense, Electrical, Electronics, Energy, Food, Furniture, Lighting, Marine, Medical, Packaging, Graphics Arts and Textile. And that's why I'm most interested in the company. Their products are everywhere in the manufacturing process so their future should be secure.
But when you look at the fundamentals above, it's obvious that revenues are sinking as well as earnings. Both are very bad signs. Add in the fact that it's priced at 23 times earnings and investors have to wonder why it's as high as it is. The only answer I can come up with is the dividend. It's been growing at a nice, but slowing rate, and the payout ratio is low enough that dividend increases can continue for awhile. But that can't go on forever unless there's a turnaround in revenues and earnings.
I believe this company will be placed low on my watch list. It's P/E would have to sink into the low teens before I'd be interested and revenue and earnings would have to reverse their fall. Therefore I'd only buy this company if the price of the shares fell to an area somewhere between $60 and $70 per share.
That would be a significant fall from it's current price near $90 per share.