Sonoma Pharmaceuticals (SNOA) AI Stock Analysis

• Market Cap: $6.43M
• Dividend Yield: N/A
• Average Volume (3M): 65.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 25.02%
• EPS Growth: 55.11%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 1,701,076
• 10 Day Avg. Volume: 126,678
• 30 Day Avg. Volume: 65,281
• PEG Ratio: 0.02
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -16.18
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: -0.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $3.50 ▼(-7.41% Downside)

Sonoma Pharmaceuticals faces significant financial challenges, with ongoing losses and liquidity issues. However, strategic growth initiatives and partnerships in the healthcare sector provide a positive outlook. Technical indicators suggest balanced market sentiment, but valuation concerns persist due to negative earnings.

Positive Factors

Revenue Growth

Positive revenue growth indicates expanding market reach and product adoption, which is crucial for long-term business sustainability.

Strategic Partnerships

Strategic partnerships enhance distribution capabilities and market penetration, supporting long-term growth in the healthcare sector.

Product Recognition

Recognition by reputable organizations enhances product credibility and can drive sales, strengthening the company's market position.

Negative Factors

Profitability Challenges

Ongoing profitability challenges highlight operational inefficiencies that could hinder long-term financial stability and growth.

Cash Flow Issues

Negative operating cash flow suggests liquidity constraints, which could limit the company's ability to invest in growth opportunities.

Liquidity Concerns

Liquidity concerns due to ongoing losses may affect the company's ability to meet short-term obligations and fund operations sustainably.

Sonoma Pharmaceuticals Business Overview & Revenue Model

Company Description

Sonoma Pharmaceuticals, Inc., develops and produces stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, and dermatological conditions in the United States, Latin America, Europe, and internationally. The company offers Epicyn, an antimicrobial facial cleanser; Levicyn, an HOCl based prescription product to manage and relieve burning, itching, and pain experienced with various types of dermatoses; Celacyn gel, a HOCl-based topical prescription product indicated to promote efficient healing through the management of new and old scars; and SebuDerm to manage and relieve the burning, itching, erythema, scaling, and pain associated with seborrhea and seborrheic dermatitis. It also provides Acuicyn, a HOCl-based product indicated to relieve itch and inflammation while helping to keep areas around the eye clean; and Microcyn, a HOCl-based topical line of products designed to stimulate expedited healing by targeting a wide range of pathogens, as well as antibiotic-resistant strains that slow the natural healing of wounds. In addition, the company offers MicrocynAH, an HOCl-based solution designed to relieve common symptoms of hot spots, scratches, skin rashes post-surgical sites, and irritated animal skin for healing; Microdacyn60 oral care solution for the treatment of mouth and throat infections; MucoClyns for the use in emergencies and safe to use on mucous membranes, cuts, abrasions, burns, and body surfaces; Endocyn root canal irrigation solutions; Pediacyn atopic dermatitis hydrogel; Ocucyn eyelid and eyelash cleanser; Gramaderm for the treatment of topical mild to moderate acne; Nanocyn, a hospital-grade disinfectant; and Sinudox for nasal irrigation. The company was formerly known as Oculus Innovative Sciences, Inc. and changed its name to Sonoma Pharmaceuticals, Inc. in December 2016. Sonoma Pharmaceuticals, Inc. was incorporated in 1999 and is based in Woodstock, Georgia.

How the Company Makes Money

Sonoma Pharmaceuticals generates revenue primarily through the sale of its therapeutic products, which include prescription and over-the-counter formulations. Key revenue streams are derived from direct product sales to healthcare providers, hospitals, and pharmacies, as well as partnerships with distributors and licensees in various global markets. The company also benefits from collaborations with research institutions and healthcare organizations to advance its product pipeline and expand its market reach. Additionally, Sonoma may receive royalties from licensing agreements related to its proprietary technologies and formulations, contributing to overall earnings.

Sonoma Pharmaceuticals Financial Statement Overview

Summary

Sonoma Pharmaceuticals shows positive revenue growth but struggles with profitability and liquidity. The company has a conservative leverage position, yet persistent losses and negative cash flows indicate operational inefficiencies and liquidity constraints.

Income Statement

Sonoma Pharmaceuticals shows a positive revenue growth rate of 13.58% TTM, indicating some recovery in sales. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins, which suggest ongoing operational challenges. The gross profit margin remains moderate, but the consistent negative net income highlights the need for cost management improvements.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.14 TTM, indicating conservative leverage. However, the negative return on equity suggests inefficiencies in generating returns from equity investments. The equity ratio is not provided, but the overall financial stability appears moderate with room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth of 70.92% TTM, yet the company continues to experience negative operating cash flow, indicating cash management issues. The free cash flow to net income ratio above 1 suggests that cash flow generation is better than accounting profits, but the negative operating cash flow coverage ratio highlights liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.94M	14.29M	12.73M	13.27M	12.63M	18.63M
Gross Profit	6.38M	5.46M	4.75M	4.48M	3.99M	6.56M
EBITDA	-3.38M	-3.57M	-4.53M	-4.45M	-5.70M	-3.22M
Net Income	-3.48M	-3.46M	-4.83M	-5.15M	-5.09M	-3.95M
Balance Sheet
Total Assets	13.86M	13.69M	14.74M	16.23M	18.84M	14.99M
Cash, Cash Equivalents and Short-Term Investments	3.04M	5.37M	3.13M	3.82M	7.40M	4.22M
Total Debt	535.00K	305.00K	608.00K	849.00K	1.37M	2.67M
Total Liabilities	10.07M	9.28M	8.60M	8.25M	10.15M	9.62M
Stockholders Equity	3.79M	4.41M	6.14M	7.98M	8.70M	5.36M
Cash Flow
Free Cash Flow	-1.37M	-168.00K	-2.42M	-6.42M	-4.38M	-3.56M
Operating Cash Flow	-1.19M	-88.00K	-2.40M	-6.15M	-4.25M	-3.38M
Investing Cash Flow	-181.00K	-80.00K	-2.00K	-258.00K	-99.00K	388.00K
Financing Cash Flow	2.34M	3.03M	1.68M	2.49M	7.40M	3.31M

Sonoma Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNOA, the sentiment is Positive. The current price of 3.78 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.58, and above the 200-day MA of 3.54, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 74.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNOA.

Sonoma Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNOA	50 Neutral	$6.43M	-1.72	-76.14%	―	25.02%	55.11%
RDHL	47 Neutral	$6.82M	―	―	―	―	―
SBFM	44 Neutral	$6.72M	-0.74	-24.34%	―	13.24%	98.80%
CPHI	42 Neutral	$6.80M	-1.31	-42.47%	―	-26.92%	69.90%
SHPH	32 Underperform	$2.89M	-0.08	-9999.00%	―	―	79.31%