NDSN - Nordson: Premium Player Delivering A Soft Performance

2024-05-22 17:15:38 ET

Summary

• Nordson Corporation has been successful in combining organic growth with savvy M&A practices, but slower organic growth and demanding valuation multiples have made investors cautious.
• The company reported sales of $2.6 billion in 2023, is well diversified, and remains very profitable.
• Nordson's recent earnings report showed flat quarterly sales and a decline in earnings, as organic growth is difficult to find right here, making it difficult to justify a premium valuation.

Nearly a year ago, I concluded that Nordson Corporation ( NDSN ) was resorting to M&A after a challenging year. The company is a great long-term value creator, combining organic growth with savvy M&A practices. Slower organic growth was offset with more M&A at the time, which made me a bit cautious, moreover as debt levels were increasing....

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