Nordson (NDSN)
Key Statistics
EV/EBIT = 21.9x
ROE = 15.54%
Debt/Equity = 78%
FCF Yield = 3.2%
Dividend Yield = 1.45%
Market Cap = $12.16 billion
The Company
Nordson (NDSN) makes devices that help factories apply glue, coatings, and sealants with high precision.
Founded in 1954 in Amherst, Ohio, by brothers Eric and Evan Nord, the company originally grew out of their family’s screw-machine business, U.S. Automatic. Their major breakthrough came when they introduced the hot melt adhesive system, which made it easier and cleaner for manufacturers to apply glue in a fast and precise way. This innovation laid the groundwork for what Nordson would become—a global leader in precision technology.
Nordson makes highly specialized machines that help factories apply adhesives, coatings, sealants, and other materials with extreme accuracy. Their systems are used in industries like electronics, automotive, packaging, appliances, and even agriculture.
These machines are not only important, but in many cases, essential. When a manufacturer needs to place a small drop of glue in exactly the right spot hundreds or thousands of times a day, Nordson is often the company they rely on. These applications require precision, consistency, and reliability—qualities Nordson is known for.
A good example of one of their products is a glue dispenser used in smartphone assembly. It places tiny drops of adhesive in the right place, often using robotic arms, and ensures that everything is put together cleanly and securely. Over time, parts like nozzles need to be replaced, and that creates a steady source of income for Nordson, even after the machine is sold.
Beyond dispensing, Nordson also makes systems for inspecting products during manufacturing. For example, their machines can scan a microchip or circuit board to catch flaws before the product leaves the factory. This is a big deal in industries like electronics, where one tiny defect can ruin a product. In addition, Nordson provides surface treatment systems that prepare materials—such as metal or plastic—so they can better hold paint or glue. These technologies are used in products ranging from cars to food packaging.
In the medical field, Nordson manufactures precision components like catheters, tubing, and medical balloons that are used in minimally invasive surgeries and diagnostics. These parts must meet strict safety and quality standards, and Nordson has built a strong reputation in this space as well. They also produce single-use plastic parts for drug delivery and laboratory diagnostics. These are items that hospitals and medical labs rely on daily, and many of them need to be replaced often, which adds another dependable stream of recurring revenue.
Over the decades, Nordson has continued to grow not just by inventing new products, but also by making smart business decisions. In the 1980s and 1990s, the company began expanding globally, opening offices and building customer relationships across Europe, Asia, and Latin America. Today, Nordson sells its products in over 35 countries and earns most of its revenue outside of the United States. The company’s headquarters is now in Westlake, Ohio, and it employs about 8,000 people around the world.
A big part of Nordson’s success comes from its approach to growth. Rather than making huge, risky moves, Nordson has followed a strategy of steady, focused development. One way it grows is by acquiring other companies that complement its existing business. These are usually smaller, specialized businesses that bring new capabilities or help Nordson enter new markets. These are not massive, disruptive deals but rather targeted purchases that fit smoothly into Nordson’s overall operations.
For example, in 2017, Nordson bought Vention Medical’s Advanced Technologies business for $705 million, which helped expand its medical device offerings. In 2022, Nordson acquired CyberOptics for $380 million. That company specializes in 3D sensing and wireless measurement systems used in semiconductors and printed circuit boards. In 2023, Nordson added ARAG Group for €960 million, giving it a strong foothold in precision agriculture through fluid control systems and smart spraying technology. Most recently, in 2024, Nordson acquired Atrion Corporation for about $800 million. Atrion specializes in infusion and cardiovascular medical devices, and this deal significantly strengthened Nordson’s medical segment.
These acquisitions all fit with Nordson’s broader strategy of sustainable, high-margin growth. By carefully selecting companies that align with its core strengths, Nordson has been able to grow without losing focus. Its strategy, called "Ascend," emphasizes using data to identify the best areas for investment, encouraging strong leadership at all levels of the company, and building teams that can execute with discipline. The result is a company that steadily improves and adapts without chasing short-term wins.
Today, Nordson operates across three main business segments.
