Today we're going to take a look at the well-established Nordson Corporation (NASDAQ:NDSN). The company's stock saw a significant share price rise of 28% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Nordson’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What Is Nordson Worth?
According to our valuation model, Nordson seems to be fairly priced at around 11% below our intrinsic value, which means if you buy Nordson today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $242.04, then there’s not much of an upside to gain from mispricing. Furthermore, Nordson’s low beta implies that the stock is less volatile than the wider market.
View our latest analysis for Nordson
Can we expect growth from Nordson?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Nordson's earnings over the next few years are expected to increase by 34%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? NDSN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on NDSN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Nordson, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Nordson and we think they deserve your attention.
If you are no longer interested in Nordson, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.