Graco vs Nordson
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KIRA’s take AI analyst
I put Graco and Nordson side by side, using each one’s latest annual report. Here is what stands out:
- Nordson is the larger business, with $2.8B of revenue in fiscal 2025 against $2.2B for Graco.
- Graco grew revenue faster (5.8%, against 3.8%).
- Graco kept more of each dollar of sales as operating profit (27.9% operating margin, against 25.5%).
- Graco turned more of its sales into free cash flow (28.5% FCF margin, against 23.7%).
- Graco earned a higher return on the capital invested in it (25.8%, against 11.6%).
- Investors pay more for each dollar of Nordson’s earnings: a P/E of 32.6x against 21.3x for Graco.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Graco
GGG
9/11
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Nordson
NDSN
2/11
Gross marginPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | GGG FY25 | NDSN FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.8B | $18.0B |
| Revenue | $2.2B | $2.8B |
| Free cash flow | $638M | $661M |
| Net income | $522M | $485M |
| Growth | ||
| Revenue growth | 5.8% | 3.8% |
| 5-year growth | 6.3% | 5.7% |
| Share count change | −1.9% | −1.2% |
| Profitability | ||
| Gross margin | 52.5% | 55.2% |
| Operating margin | 27.9% | 25.5% |
| Net margin | 23.3% | 17.4% |
| FCF margin | 28.5% | 23.7% |
| Return on capital | 25.8% | 11.6% |
| Return on equity | 19.9% | 16.2% |
| Balance sheet | ||
| Net debt | −$623M | $1.9B |
| Net debt / EBITDA | −0.9x | 2.4x |
| Dividends and buybacks | $607M | $486M |
| Valuation & quality | ||
| P/E | 21.3x | 32.6x |
| Piotroski F-score | 4 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.