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Should Nordson’s Slowing Organic Growth and EPS Trend Require Action From NDSN Investors?

Simply Wall St · 4d ago
  • Recently, analysts have highlighted that Nordson Corporation’s organic sales have underperformed over the past two years, with earnings per share rising only 2% annually and returns on capital easing, raising questions about the durability of its prior profit engines.
  • This weaker earnings momentum, combined with signs of diminishing capital efficiency, has sparked debate over whether Nordson must lean more on acquisitions or operational changes to revive growth.
  • Now we’ll examine how concerns over Nordson’s slowing earnings and organic sales trajectory affect the previously optimistic investment narrative built around margin resilience.

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Nordson Investment Narrative Recap

To own Nordson, you need to believe its niche dispensing and precision solutions can still compound value despite slower organic sales and easing returns on capital. The recent data on softer organic growth and modest earnings progress makes near term earnings momentum the key catalyst to watch, while the biggest current risk is that weaker capital efficiency persists and forces heavier reliance on acquisitions to sustain growth. If that happens, the long held margin resilience story may face a tougher test in the short run.

The latest full year 2025 results, with sales of US$2,791.69M and net income of US$484.47M, sit in the background of this debate, as they show earnings growth that has recently trailed both Nordson’s own history and analyst expectations for the broader market. At the same time, ongoing buybacks under the long running repurchase program and a 5 percent dividend increase to US$0.82 per share show management continuing to return cash to shareholders even as questions build around the sustainability of past organic growth drivers and returns on capital.

Yet investors should be aware that if organic sales softness persists and returns on capital keep slipping, then ...

Read the full narrative on Nordson (it's free!)

Nordson's narrative projects $3.5 billion revenue and $694.8 million earnings by 2028.

Uncover how Nordson's forecasts yield a $271.00 fair value, a 10% upside to its current price.

Exploring Other Perspectives

NDSN 1-Year Stock Price Chart
NDSN 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community cluster between US$240 and US$271, showing how differently individual investors can assess Nordson. You can weigh those views against the recent concerns about slower organic sales and easing returns on capital, and consider what they might mean for Nordson’s ability to support earnings growth over time.

Explore 4 other fair value estimates on Nordson - why the stock might be worth as much as 10% more than the current price!

Build Your Own Nordson Narrative

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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.