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Nordson (Nordson) Gross Margin % : 55.03% (As of Jan. 2024)


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What is Nordson Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nordson's Gross Profit for the three months ended in Jan. 2024 was $348 Mil. Nordson's Revenue for the three months ended in Jan. 2024 was $633 Mil. Therefore, Nordson's Gross Margin % for the quarter that ended in Jan. 2024 was 55.03%.


The historical rank and industry rank for Nordson's Gross Margin % or its related term are showing as below:

NDSN' s Gross Margin % Range Over the Past 10 Years
Min: 53.3   Med: 54.88   Max: 56.05
Current: 54.5


During the past 13 years, the highest Gross Margin % of Nordson was 56.05%. The lowest was 53.30%. And the median was 54.88%.

NDSN's Gross Margin % is ranked better than
94.17% of 2934 companies
in the Industrial Products industry
Industry Median: 26.36 vs NDSN: 54.50

Nordson had a gross margin of 55.03% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nordson was 0.10% per year.


Nordson Gross Margin % Historical Data

The historical data trend for Nordson's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nordson Gross Margin % Chart

Nordson Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 54.33 53.30 56.05 55.07 54.23

Nordson Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.87 54.16 55.55 53.40 55.03

Competitive Comparison of Nordson's Gross Margin %

For the Specialty Industrial Machinery subindustry, Nordson's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nordson's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nordson's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Nordson's Gross Margin % falls into.



Nordson Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Nordson's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=1425.4 / 2628.632
=(Revenue - Cost of Goods Sold) / Revenue
=(2628.632 - 1203.227) / 2628.632
=54.23 %

Nordson's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=348.4 / 633.193
=(Revenue - Cost of Goods Sold) / Revenue
=(633.193 - 284.766) / 633.193
=55.03 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Nordson  (NAS:NDSN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Nordson had a gross margin of 55.03% for the quarter that ended in Jan. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Nordson Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nordson's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nordson (Nordson) Business Description

Traded in Other Exchanges
Address
28601 Clemens Road, Westlake, OH, USA, 44145
Nordson is a manufacturer of equipment (including pumps, valves, dispensers, applicators, filters, and pelletizers, among other equipment) used for dispensing adhesives, coatings, sealants, and other materials. The firm serves a diverse range of end markets including packaging, medical, electronics, and industrial. Nordson's business is organized into three segments: industrial precision solutions, medical and fluid solutions, and advanced technology solutions. The company generated approximately $2.6 billion in revenue in its fiscal 2023.
Executives
Srinivas Subramanian officer: Executive Vice President 28601 CLEMENS ROAD, WESTLAKE OH 44145
Stephen Lovass officer: Executive Vice President C/O NORDSON CORPORATION, 28601 CLEMENS ROAD, WESTLAKE X1 44145
Joseph P Kelley officer: EVP and CFO 6070 PARKLAND BLVD., MAYFIELD HEIGHTS OH 44124
Stephen F Shamrock officer: Interim CFO 28601 CLEMENS ROAD, WESTLAKE OH 44145
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Jeffrey A Pembroke officer: Executive Vice President C/O NORDSON CORPORATION, 28601 CLEMENS ROAD, WESTLAKE OH 44145
Sarah Siddiqui officer: EVP, CHRO C/O NORDSON CORPORATION, 28601 CLEMENS ROAD, WESTLAKE OH 44145
Shelly Peet officer: Executive Vice President 28601 CLEMENS ROAD, WESTLAKE OH 44145
Sundaram Nagarajan director, officer: President and CEO 28601 CLEMENS ROAD, WESTLAKE OH 44145
Jennifer L Mcdonough officer: EVP, GC, and Secretary C/O NORDSON CORPORATION, 28601 CLEMENS ROAD, WESTLAKE OH 44145
Michael J Merriman director C/O RC2 CORPORATION, 1111 WEST 22ND STREET, SUITE 320, OAK BROOK IL 60523
Richey Victor L Jr director C/O ESCO TECHNOLOGIES, 9900 A CLAYTON ROAD, ST. LOUIS MO 63124
Frank M Jaehnert director C/O ITRON, INC., 2111 N MOLTER ROAD, LIBERTY LAKE WA 99019
Ginger M Jones director 55 JEWELERS PARK DRIVE, NEENAH WI 54956
Jennifer A Parmentier director 6035 PARKLAND BLVD, CLEVELAND OH 44124

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