Understanding Nordson’s Newly Added Risk Factors


Nordson (NASDAQ:NDSN) is a company that designs and manufactures dispensing equipment for adhesives, sealants, and coatings for both consumers and businesses.

Let us take a look at the company’s financials and understand what has changed in key risk factors that investors should know.

Nordson Risk Factors

According to the new Tipranks Risk Factors tool, Nordson’s main risk categories are Finance & Corporate and Macro & Political, each accounting for 26% of the total 23 risks identified.

The organization has identified two new risks, one under the Legal & Regulatory category and the other in the Production category.

Nordson points out that the corporation is subject to increasingly complex environmental regulations. These regulations cover a variety of areas, including air and water pollution, waste management, and climate change. Nordson warns investors that any changes to these environmental standards, or failure to comply with them, might subject the firm to various penalties, negatively impacting its financial situation and operating results.

Second, Nordson underlines that it needs a lot of raw materials to run its operations. However, the corporation warns that rising inflation may lead to scarcity, disruptions, or a rise in the prices of these raw materials, negatively impacting the financial health and cash flow of the company.

Meanwhile, the Finance and Corporate risk factor’s sector average is 36.2%, compared to Nordson’s 26.1%.

Q4 Financial Results

Sales increased 7% year-over-year to $599 million. Meanwhile, the company reported $1.88 per share in profits, up 18% year-over-year.

At the end of Q4, Nordson had $299.97 million in cash and investments and $781.7 million in long-term debt.

The company’s upcoming earnings report is expected to be released on February 21.

Wall Street’s Take

Turning to Wall Street, the stock has a Strong Buy consensus rating based on 5 Buys and 2 Holds. The average NDSN price target of $292.67 implies 15.4% upside potential to current levels.

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