We came across a bullish\u00a0thesis on Nordson Corporation on Danny\u2019s Substack by Danny Green. In this article,\u00a0we will summarize the\u00a0bulls\u2019\u00a0thesis on\u00a0NDSN.\u00a0Nordson Corporation’s\u00a0share was trading at $299.29\u00a0as of\u00a0February 18th.\u00a0NDSN\u2019s\u00a0trailing and forward\u00a0P\/E\u00a0were\u00a035.04\u00a0and\u00a026.53\u00a0respectively\u00a0according to Yahoo Finance.<\/p>\n Suwin\/Shutterstock.com<\/p>\n Nordson Corporation (NDSN) represents a high-quality industrial compounder with cyclical exposure, currently positioned for a constructive inflection as macro conditions stabilize. The company operates across diversified end markets including Industrial Precision, Medical & Fluid Solutions, and Advanced Technology, reducing reliance on any single sector while maintaining exposure to industrial capex cycles.<\/p>\n Although recent organic sales have been flat to modestly negative in pockets such as polymer processing and advanced systems, management\u2019s fiscal 2026 outlook assumes improving customer demand,\u00a0signaling\u00a0confidence that macro softness is bottoming. Nordson delivered record fiscal 2025 revenue of $2.8 billion and EBITDA of $900 million, with adjusted EPS rising approximately 5% year over year, while Q3 revenue grew 12% year over year and free cash flow conversion remained exceptionally strong. Backlog entering fiscal 2026 stands near $600 million, providing revenue visibility despite modest Q4 organic softness.<\/p>\n The company\u2019s durable moat stems from technological expertise, entrenched customer relationships, recurring industrial spend, and a strong margin profile of roughly 32\u201334% EBITDA margins. Capital allocation remains disciplined, with free cash flow supporting dividends, share repurchases, and selective acquisitions under structured frameworks such as NBS Next and Ascend.<\/p>\n While exposure to FX and cyclical capex creates volatility risk, strong cash generation and backlog conversion provide downside support. If sequential organic growth reaccelerates in Industrial Precision and Advanced Technology, multiple expansion is likely. With moderate growth expectations embedded in valuation and robust cash flow underpinning earnings, Nordson offers an attractive risk\/reward skew for investors anticipating a cyclical recovery.<\/p>\n Previously, we covered a\u00a0bullish thesis<\/b> on Graco Inc. (GGG) by Stock Analysis Compilation in December 2024, which highlighted the company\u2019s premium fluid-handling niche, pricing power, and stable parts-driven margins. GGG’s stock price has appreciated by approximately 10.28% since our coverage.<\/strong> Danny Green shares a similar view but emphasizes on Nordson Corporation\u2019s cyclical recovery inflection, diversified end-markets, and backlog-supported earnings visibility.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>