Core Insights - The article compares Gorman-Rupp (GRC) and Nordson (NDSN) to determine which stock is more attractive to value investors [1] Valuation Metrics - GRC has a forward P/E ratio of 20.26, while NDSN has a forward P/E of 22.02 [5] - GRC's PEG ratio is 1.56, compared to NDSN's PEG ratio of 1.69, indicating GRC's expected earnings growth is more favorable [5] - GRC's P/B ratio is 2.73, while NDSN's P/B ratio is 4.2, suggesting GRC is more undervalued relative to its book value [6] Analyst Outlook - GRC currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to NDSN's Zacks Rank of 3 (Hold) [3] - GRC's solid earnings outlook and favorable valuation metrics position it as the superior value option compared to NDSN [7]

Company Overview - Nordson is a global provider of precision dispensing and processing equipment, focusing on specialized, high-margin applications in industrial and technology-driven sectors [4] - The company serves diverse end markets, including medical, electronics, consumer non-durable, and industrials, with nearly 60% of its sales coming from outside the United States [8] - Nordson generates revenue through the sale of proprietary equipment, systems, and related components, as well as aftermarket parts and services, emphasizing automation and precision solutions [7] Financial Performance - As of July 8, 2025, Nordson's market capitalization is $12.51 billion, with a revenue of $2.70 billion and a net income of $447 million [2] - The company has a dividend yield of 1.41% and has increased its dividend payout annually for 61 consecutive years, with a 15% increase last year [5] - Nordson expects to grow its annual revenue by 6% to 8% and adjusted earnings per share by 10% to 12% between 2025 and 2029, anticipating nearly $4 billion in operating cash flows during this period [9] Investment Insights - Confluence Investment Management LLC increased its stake in Nordson by acquiring 182,305 additional shares, raising its total holding to 336,090 shares, with a reported position value increase of $41 million [1] - Nordson stock closed at $221.50 on July 8, 2025, with a one-year share price change of -2.29%, underperforming the S&P 500 by 14.1 percentage points [6] - The stock trades 16.3% below its 52-week high, with a forward P/E of 22.1 and an EV/EBITDA ratio of 18.1 [6]

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing [2] - It emphasizes the importance of dividend growth investing and identifying undervalued high-quality stocks [2] Group 1: Financial Independence Journey - The individual transitioned from being financially unstable at age 27 to achieving financial freedom by age 33 [2] - The approach involved living below means and making intelligent investment decisions [2] Group 2: Investment Strategies - Focus on dividend growth investing as a primary strategy for generating income [2] - Highlighting the significance of high-yield situations and long-term investment opportunities [2]

Core Insights - The industrials sector has been a top performer in 2025, with the Industrial Select Sector SPDR Fund (XLI) returning nearly 9% year-to-date, significantly outperforming the S&P 500 [1] - The Trump administration's focus on boosting domestic manufacturing is contributing to a positive outlook for industrial companies [1] Company Summaries Nordson Corporation (NASDAQ: NDSN) - Nordson's stock has a 12-month price forecast of $253.17, indicating a potential upside of 19.24% from the current price of $212.31 [3][6] - The company reported adjusted earnings per share of $2.42, exceeding analyst expectations by $0.06, with revenue increasing by 5% year-over-year to $683 million [4] - Nordson's strong performance is supported by a 5% growth in backlog and positive forecasts for the third quarter, with expected adjusted EPS between $2.55 and $2.75 [5] VSE Corporation (NASDAQ: VSEC) - VSE's stock forecast suggests a 12-month price target of $125.17, reflecting a downside of 4.72% from the current price of $131.37 [8] - The company has transitioned to focus solely on aviation, recently acquiring Turbine Weld Industries to enhance its maintenance, repair, and overhaul services [9][10] - VSE's shares have surged 40% year-to-date, driven by strategic repositioning in the high-demand aviation sector [8] Cimpress plc (NASDAQ: CMPR) - Cimpress has a 12-month stock price forecast of $62.50, indicating a potential upside of 40.29% from the current price of $44.55 [12] - The company is shifting towards "elevated products" such as apparel and packaging, which aligns with recent sales growth trends [13] - Despite a nearly 38% decline year-to-date, Cimpress has seen a 9% increase in the last month, suggesting potential recovery [12]

Company Performance - Life360 (LIF) has gained approximately 48.1% year-to-date, significantly outperforming the average return of -3.7% for the Industrial Products sector [4] - Life360 holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 11.6% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Another outperforming stock in the Industrial Products sector is Nordson (NDSN), which has returned 1.4% year-to-date and holds a Zacks Rank of 2 (Buy) [4][5] Industry Context - The Industrial Products sector consists of 190 individual stocks and currently ranks 13 among 16 sector groups according to Zacks [2] - Life360 is part of the Security and Safety Services industry, which includes 17 stocks and ranks 84 in the Zacks Industry Rank, with an average gain of 3.5% year-to-date [5] - In contrast, Nordson belongs to the Manufacturing - General Industrial industry, which has 38 stocks and ranks 145, with a year-to-date decline of -2.7% [6]

Core Insights - Nordson's stock has seen a nearly 10% increase following strong quarterly results that pleased investors [1] Financial Performance - In Q2 of fiscal 2025, Nordson reported total sales of $683 million, up from $651 million in Q2 of fiscal 2024, exceeding analyst expectations of slightly under $673 million [2] - The company achieved a non-GAAP adjusted income of $138 million, or $2.42 per share, a slight increase from $135 million in the same period last year, also surpassing the average analyst projection of $2.36 [4] Factors Contributing to Performance - Management attributed the improved results to robust sales in key divisions such as electronic systems and precision agriculture, along with a 5% rise in order backlog [5] Future Guidance - For the current third quarter, Nordson estimates earnings between $710 million to $750 million, with adjusted earnings projected at $2.55 to $2.75 per share, while analysts expect a top line of just over $724 million and adjusted profitability of $2.63 per share [6] Overall Assessment - The company is demonstrating steady performance across key divisions, with growing fundamentals and consistent cash flow to support its increasing dividend, indicating a reliable investment opportunity [7]

Core Insights - Nordson Corporation is identified as a high-quality company with the potential to outperform the market over the long term due to its competitive advantage and defensibility [1]. Company Analysis - The analysis emphasizes a focus on companies in Europe and North America, without restrictions on market capitalization, ranging from large cap to small cap [1]. - The author has a strong academic background in sociology, which informs the analysis of organizational and economic factors affecting companies [1].

Part I – Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Nordson's Q2 FY2025 saw 5.0% sales growth, but net income decreased 4.9% to $112.4 million, with total assets at $6.06 billion [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $682,938 | $650,642 | $1,298,358 | $1,283,835 | | **Operating Profit** | $168,750 | $168,616 | $309,697 | $328,051 | | **Net Income** | $112,404 | $118,217 | $207,056 | $227,789 | | **Diluted EPS** | $1.97 | $2.05 | $3.62 | $3.95 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Metric | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,323,522 | $1,275,032 | | **Total Assets** | $6,062,038 | $6,000,966 | | **Total Current Liabilities** | $516,640 | $528,477 | | **Total Liabilities** | $3,101,734 | $3,068,774 | | **Total Shareholders' Equity** | $2,960,304 | $2,932,192 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended (in thousands) | Cash Flow Activity | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $278,292 | $294,964 | | **Net cash used in investing activities** | ($27,100) | ($15,177) | | **Net cash used in financing activities** | ($240,813) | ($265,757) | | **Increase in cash and cash equivalents** | $14,205 | $9,767 | | **Cash and cash equivalents at end of period** | $130,157 | $125,446 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Atrion acquisition, MCS realignment, derivative usage for risk, and the company's $2.2 billion debt - On August 21, 2024, the Company acquired Atrion Corporation for an all-cash price of **$789,996** (net of cash acquired), which now operates within the MFS segment[34](index=34&type=chunk)[35](index=35&type=chunk) - Effective November 1, 2024, the Measurement and Control Solutions (MCS) division was transferred from the Industrial Precision Solutions (IPS) segment to the Advanced Technology Solutions (ATS) segment[41](index=41&type=chunk)[69](index=69&type=chunk) - The company uses various derivative instruments, including foreign currency forward contracts, interest rate swaps (fair value hedges), and cross-currency swaps (net investment hedges) to manage market risks[81](index=81&type=chunk)[87](index=87&type=chunk)[90](index=90&type=chunk) - On May 28, 2025, the Company signed an agreement to divest select product lines within its medical contract manufacturing business, with the deal expected to close in Q4 2025[99](index=99&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reported a 5.0% sales increase in Q2 2025, driven by acquisitions and ATS growth, despite operating margin contraction [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 2025 sales increased 5.0% to **$682.9 million**, but net income decreased 4.9% to **$112.4 million**, with operating margin declining to **24.7%** Q2 2025 vs Q2 2024 Sales Variance Analysis | Segment/Region | Total Variance | Organic | Acquisitions | Currency | | :--- | :--- | :--- | :--- | :--- | | **Total Company** | **5.0%** | **(2.4)%** | **7.8%** | **(0.4)%** | | IPS Segment | (7.6)% | (6.9)% | —% | (0.7)% | | MFS Segment | 20.0% | (10.0)% | 30.0% | —% | | ATS Segment | 18.0% | 18.1% | —% | (0.1)% | | Asia Pacific Region | 25.2% | 22.6% | 3.2% | (0.6)% | Q2 2025 vs Q2 2024 Operating Profit (in thousands) | Segment | Q2 2025 Profit | Q2 2025 Margin | Q2 2024 Profit | Q2 2024 Margin | | :--- | :--- | :--- | :--- | :--- | | **Total Company** | **$168,750** | **24.7%** | **$168,616** | **25.9%** | | IPS | $95,722 | 30.0% | $115,922 | 33.6% | | MFS | $56,805 | 28.0% | $48,993 | 29.0% | | ATS | $31,558 | 19.6% | $20,693 | 15.1% | - Interest expense increased by **32.1%** in Q2 2025 to **$26.6 million**, primarily due to higher average debt levels driven by acquisitions[106](index=106&type=chunk)[114](index=114&type=chunk) - The effective tax rate for Q2 2025 was **19.0%**, down from **20.8%** in the prior-year period, primarily due to the foreign-derived intangible income deduction[46](index=46&type=chunk)[117](index=117&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=28&type=section&id=Financial%20Condition) The company maintains a strong financial condition with **$130.2 million** cash, **$278.3 million** operating cash flow, and **$806.5 million** available borrowings - Net cash provided by operating activities was **$278.3 million** for the six months ended April 30, 2025, compared to **$295.0 million** in the prior year period[123](index=123&type=chunk) - As of April 30, 2025, the company had **$130.2 million** in cash and cash equivalents and **$806.5 million** in available borrowings under its loan agreements and unused bank lines of credit[125](index=125&type=chunk) - Additions to property, plant and equipment increased to **$37.4 million** in the first six months of 2025, up from **$21.9 million** in the prior year, driven by productivity projects and a new manufacturing facility[123](index=123&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in market risk exposures, including interest rates and foreign currency, have occurred since the 2024 Form 10-K filing - Information regarding financial instruments sensitive to changes in interest and foreign currency exchange rates has not changed materially since the 2024 Form 10-K[129](index=129&type=chunk) [Controls and Procedures](index=29&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of April 30, 2025, with no material changes to internal controls - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of April 30, 2025[130](index=130&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[131](index=131&type=chunk) Part II – Other Information [Risk Factors](index=30&type=section&id=ITEM%201A.%20RISK%20FACTORS) Changes in government trade policies, tariffs, and import/export regulations pose a material risk to the company's business - The company highlights that changes in government trade policies, tariffs, and import/export regulations pose a material risk to its business, potentially impacting sales, margins, and profitability[135](index=135&type=chunk) [Share Repurchases](index=30&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Nordson repurchased **423,521** shares for **$85.3 million** in Q2 2025, with **$382.6 million** remaining for future repurchases Share Repurchases for the Three Months Ended April 30, 2025 | Period | Total Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | Feb 2025 | 123,121 | $216.07 | | Mar 2025 | 141,409 | $207.78 | | Apr 2025 | 158,991 | $184.59 | | **Total** | **423,521** | **$201.49** | - As of April 30, 2025, approximately **$382.6 million** remained available for share repurchases under the company's authorized programs[136](index=136&type=chunk)

Nordson Corporation’s (NDSN) second-quarter fiscal 2025 (ended April 30, 2025) adjusted earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line increased 3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Quarterly Results of NDSNNordson’s revenues were $682.9 million, up 5% from the year-ago fiscal quarter’s number, driven by strength in the Advanced Technology Solutions segment and contributions from acquired assets. Revenues be ...

Financial Performance - Sales reached $683 million, a 5% increase year-over-year, exceeding the midpoint of guidance[7, 15] - Adjusted EPS increased by 3%, driven by operational excellence despite geopolitical uncertainty[7, 15] - EBITDA increased by 7% to $217 million due to higher sales volume and improved SG&A leverage[15, 17] - The company reported a strong EBITDA margin of 32%, slightly above the prior year[17] Segment Performance - Industrial Precision Solutions (IPS) sales decreased by 8% to $319 million, with a 7% organic decrease[23] - Medical and Fluid Solutions (MFS) sales increased by 20% to $203 million, including 30% growth from the Atrion acquisition, but organic sales decreased by 10%[29] - Advanced Technology Solutions (ATS) sales increased by 18% to $161 million, with an 18% organic increase[35] Portfolio and Strategy - The company signed an agreement to divest certain contract manufacturing product lines within the medical interventional solutions business, expected to close in early 4Q fiscal 2025[11] - The company is prioritizing above-market growth in proprietary medical components, focusing on the remaining ~$800 million medical and fluid solutions product lines[9, 11] Balance Sheet and Cash Flow - Cash totaled $130 million, with a net debt leverage ratio of 24x based on trailing 12-month EBITDA[42] - Free cash flow was $103 million, representing a 92% conversion rate of net income[42] Capital Deployment and Outlook - The company executed share repurchases of $85 million and dividend payments of $44 million[42] - The company anticipates 3Q 2025 sales between $710 million and $750 million, with adjusted EPS between $255 and $275[50] - Backlog increased by approximately 5% from the prior quarter, indicating solid order entry moving into 3Q[48, 53]