The Misfits: Nordson Corporation (NDSN)

Some businesses change in subtle ways, but they can profoundly impact our investment thesis.

The Iron Rolling Mill (Modern Cyclopes), Adolph von Menzel, 1875, oil on canvas (Alte Nationalgalerie)

All businesses change. Some in more subtle ways than others.

Change is a necessity for any business. Otherwise, they can fall into obscurity. Unfortunately, change also means taking on new challenges where there is no certainty of success.

Not all business changes are necessary, though. They can sometimes be the brainchild of management looking to take the company in a different direction.

Nordson Corporation (NASDAQ: NDSN) doesn’t look like a company going through much of a change. The machinery company’s growth via acquisition playbook has been used since the 1970s. It's a playbook, I think, that most of its investors have appreciated.

What seems different is the type of investments the company has made in the past couple of years. Management appears to be charting a new course.

Let’s dig in.