What happened
According to an SEC filing dated July 1, 2025, Confluence Investment Management LLC increased its stake in Nordson (NDSN -1.05%) by acquiring 182,305 additional shares during fiscal 2025's second quarter. The transaction lifted the fund’s holding in Nordson to 336,090 shares, increasing the reported position value by $41 million.
What else do you need to know?
Nordson stock now comprises 1.02% of Confluence Investment Management's reportable AUM.
Top five holdings after filing:
- iShares 0-3 Month Treasury Bond ETF (SGOV): $238.64 million (3.4% of AUM)
- Chubb (CB): $158.86 million (2.2% of AUM)
- Snap-on (SNA): $156.07 million (2.2% of AUM)
- Paychex (PAYX): $151.95 million (2.1% of AUM)
- Northern Trust (NTRS): $150.20 million (2.1% of AUM)
Other need-to-know facts about Nordson:
- Nordson's share price closed at $221.50 on July 8, 2025.
- The stock's one-year share price change is -2.29%, and it underperformed the S&P 500 by 14.1 percentage points over the past year.
- Forward P/E is 22.1; EV/EBITDA (TTM) ratio is 18.1.
- The stock trades 16.3% below its 52-week high (as of July 8, 2025).
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $12.51 billion |
| Revenue (TTM) | $2.70 billion |
| Net income (TTM) | $447 million |
| Dividend yield | 1.41% |
Note: Trailing 12-month data is as of April 30, 2025.
Company snapshot
- Engineers and manufactures dispensing, coating, and curing systems for adhesives, coatings, polymers, sealants, biomaterials, and related fluids, serving both industrial and advanced technology applications.
- Generates revenue through the sale of proprietary equipment, systems, and related components, as well as aftermarket parts and service, with a focus on automation and precision solutions.
- Serves a global customer base across diverse end markets, including packaging, electronics, medical, and industrial sectors, with operations spanning North America, Europe, and Asia.
Nordson is a global provider of precision dispensing and processing equipment, leveraging advanced engineering to serve diverse end markets. The company’s scale and focus on specialized, high-margin applications enable it to maintain a strong competitive position in industrial and technology-driven sectors.
Foolish take
If you haven’t heard about Nordson, you likely are also unaware of what a powerful dividend-paying company it is. Nordson is a Dividend King, having increased its dividend payout annually for 61 consecutive years. The company increased its dividend by 15% last year, and appears to be on track to announce yet another meaningful hike in the coming weeks.
Nordson serves diverse end markets, including medical, electronics, consumer non-durable, and industrials, and it gets nearly 60% of its sales from outside the United States. Nordson’s product mix has undergone a sea change over the past decade, with the company generating more in recurring revenue now than ever. In 2024, for instance, 58% of Nordson's sales came from parts and consumables versus only 39% in 2014.
Buoyed by its 2024 acquisition of medical products maker Atrion, Nordson now expects to grow its annual revenue by 6% to 8% and adjusted earnings per share by 10% to 12% between 2025 and 2029. It also expects to generate nearly $4 billion in operating cash flows during the period, the bulk of which should be deployed into organic growth and dividends.
Given the backdrop, I wouldn’t be surprised if Nordson stock generates handsome returns for shareholders in the long run. The stock has more than tripled in value in the past 10 years.
Glossary
- Reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
- SEC filing: Official documents submitted to the U.S. Securities and Exchange Commission, providing financial and ownership information about companies or funds.
- Post-trade position: The total number of shares or value held in a security after a transaction is completed.
- Dividend yield: Annual dividends per share divided by share price, expressed as a percentage.
- Forward P/E: Price-to-earnings ratio based on projected future earnings, used to assess valuation.
- EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric.