Sonoma Pharmaceuticals (SNOA) AI Stock Analysis

• Market Cap: $5.90M
• Dividend Yield: N/A
• Average Volume (3M): 66.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.50
• Revenue Growth: 12.19%
• EPS Growth: 78.92%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.15
• Shares Outstanding: 1,642,765
• 10 Day Avg. Volume: 154,171
• 30 Day Avg. Volume: 66,654
• PEG Ratio: -0.07
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -35.79
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.23
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $4.00 ▲(11.42%Upside)

Sonoma Pharmaceuticals' overall stock score is driven primarily by its financial challenges, with declining revenues and persistent unprofitability being significant concerns. Despite favorable technical indicators suggesting strong market momentum, the potential overbought condition and negative valuation metrics, including a negative P/E ratio, balance out the outlook. The absence of earnings call and corporate events data means these aspects did not influence the score.

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 through the sale of its proprietary hypochlorous acid-based products to healthcare providers, hospitals, and consumers. The company's key revenue streams include direct sales to medical institutions, partnerships with distributors, and licensing agreements with other companies to market and sell its products in various regions. Significant partnerships with international distributors enhance its market reach and contribute to revenue growth. Additionally, Sonoma may earn income from its research and development collaborations aimed at expanding the application of its technology in new therapeutic areas.

Sonoma Pharmaceuticals Financial Statement Overview

Summary

Sonoma Pharmaceuticals is navigating significant financial challenges, particularly with declining revenues and persistent unprofitability. The balance sheet shows some stability with a decreasing debt load, but the equity position is weakening. Cash flow management remains critical as negative cash flows persist. The company needs strategic shifts to improve financial health.

Income Statement

Sonoma Pharmaceuticals has faced consistent revenue challenges, with a notable decline in revenue over the years. The revenue growth rate is negative, indicating a shrinking top line. The company also struggles with profitability, as evidenced by negative profit margins across gross, net, and EBIT. Despite some improvements in gross profit margin, the overall performance remains weak.

Balance Sheet

The balance sheet indicates a moderate financial position with challenges. The debt-to-equity ratio has improved due to reduced debt, yet the stockholders' equity has also decreased, reflecting a weakening financial foundation. The equity ratio is moderate, suggesting a balanced asset structure, but not particularly strong.

Cash Flow

Cash flow performance is concerning, with consistently negative operating and free cash flows. The company has managed financing inflows, yet the free cash flow growth has been negative, pointing to ongoing operational cash challenges. The cash flow to net income ratios reflect struggles in converting revenue into cash.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.29M	12.73M	13.27M	12.63M	18.63M
Gross Profit	5.46M	4.75M	4.48M	3.99M	6.56M
EBITDA	-3.57M	-4.53M	-4.45M	-5.70M	-3.22M
Net Income	-3.46M	-4.83M	-5.15M	-5.09M	-4.62M
Balance Sheet
Total Assets	13.69M	14.74M	16.23M	18.84M	14.99M
Cash, Cash Equivalents and Short-Term Investments	5.37M	3.13M	3.82M	7.40M	4.22M
Total Debt	305.00K	608.00K	849.00K	1.37M	2.67M
Total Liabilities	9.28M	8.60M	8.25M	10.15M	9.62M
Stockholders Equity	4.41M	6.14M	7.98M	8.70M	5.36M
Cash Flow
Free Cash Flow	-168.00K	-2.42M	-6.42M	-4.38M	-3.56M
Operating Cash Flow	-88.00K	-2.40M	-6.15M	-4.25M	-3.38M
Investing Cash Flow	-80.00K	-2.00K	-258.00K	-99.00K	388.00K
Financing Cash Flow	3.03M	1.68M	2.49M	7.40M	3.31M

Sonoma Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.59
• 50DMA: Positive
• 100DMA: Positive
• 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 3.59 is above the 20-day moving average (MA) of 3.22, above the 50-day MA of 3.22, and above the 200-day MA of 2.88, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 54.06 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
SONN	55 Neutral	$20.60M	―	-714.96%	―	978.39%	69.65%
SNOA	54 Neutral	$5.90M	―	-65.55%	―	12.19%	78.92%
Sector *	52 Neutral	$7.35B	-0.07	-63.71%	2.81%	16.17%	0.03%
NBY	45 Neutral	$3.86M	―	-235.50%	―	-49.76%	96.81%
CNSP	32 Underperform	$4.37M	―	-477.53%	―	―	90.33%
FOXO	22 Underperform	$2.12M	―	-467.31%	―	1397.08%	89.53%
KTTA	―	$5.35M	―	-82.81%	―	―	―

Sonoma Pharmaceuticals Corporate Events

Sonoma Pharmaceuticals Ends EMC Pharma Agreement

Sonoma has terminated its exclusive agreement with EMC Pharma due to EMC’s failure to meet minimum purchase requirements, allowing Sonoma to resume direct sales of its dermatological and eye care products in the U.S. This decision is part of the company’s strategy to enhance its market presence, despite potential risks and uncertainties that could affect its future financial performance.