Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Nordson as such a stock due to the following factors:
- NDSN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
- NDSN has traded 8,322 shares today.
- NDSN is trading at a new lifetime high.
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More details on NDSN:
Nordson Corporation 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. The stock currently has a dividend yield of 1%. NDSN has a PE ratio of 22.4. Currently there are 2 analysts that rate Nordson a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Nordson has been 248,500 shares per day over the past 30 days. Nordson has a market cap of $4.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.38 and a short float of 1.6% with 6.86 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Wednesday.
rates Nordson as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- NDSN's revenue growth has slightly outpaced the industry average of 6.4%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, NDSN has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $47.69 million or 19.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.00%.
- The gross profit margin for NORDSON CORP is rather high; currently it is at 58.22%. Regardless of NDSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NDSN's net profit margin of 9.70% compares favorably to the industry average.
- NORDSON CORP's earnings per share declined by 16.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, NORDSON CORP reported lower earnings of $3.42 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($3.70 versus $3.42).
- You can view the full Nordson Ratings Report.