Sono-Tek (SOTK) AI Stock Analysis

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Sono-Tek

(NASDAQ:SOTK)

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Neutral 56 (OpenAI - 4o)

Rating:56Neutral

Price Target:―

Sono-Tek's strong revenue growth and solid balance sheet provide a stable foundation, but challenges in operational efficiency and cash flow limit upside potential. Technical analysis indicates weak momentum, and the high P/E ratio suggests overvaluation risks. Corporate events support the growth narrative but are already reflected in the financial performance.

Sono-Tek (SOTK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$65.58M

Dividend YieldN/A

Average Volume (3M)23.64K

Price to Earnings (P/E)46.0

Beta (1Y)0.62

Revenue Growth-2.47%

EPS Growth-16.94%

CountryUS

Employees82

SectorTechnology

Sector Strength88

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)0.03

Shares Outstanding15,727,702

10 Day Avg. Volume38,679

30 Day Avg. Volume23,641

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.76

Enterprise Value/Revenue2.47

Enterprise Value/Gross Profit5.16

Enterprise Value/Ebitda35.36

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering1

Sono-Tek Business Overview & Revenue Model

Company DescriptionSono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. It also designs and manufactures custom-engineered ultrasonic coating systems; and provides nozzles and generators for manufacturers' equipment. The company's products include integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. It markets and distributes its products through independent distributors and sales representatives. The company was incorporated in 1975 and is based in Milton, New York.

How the Company Makes MoneySono-Tek generates revenue primarily through the sale of its ultrasonic coating systems and related equipment. The company's key revenue streams include direct sales to manufacturers, integrators, and other businesses that require advanced coating solutions. Additionally, Sono-Tek offers technical support, maintenance, and consulting services, which provide recurring revenue. Significant partnerships with companies in sectors such as medical devices and electronics also contribute to its earnings by expanding market reach and enhancing product offerings. By focusing on innovation and customization, Sono-Tek maintains a competitive edge, allowing it to capture a diverse customer base across global markets.

Sono-Tek Earnings Call Summary

Earnings Call Date:Jul 10, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Oct 21, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive outlook with strong revenue growth and backlog, particularly in the clean energy and medical device sectors. However, there are challenges with declining sales in China and Latin America, and potential uncertainties in clean energy orders due to policy shifts. Despite these challenges, the expansion into high-value markets and successful strategic initiatives provide a positive sentiment overall.

Q4-2025 Updates

Positive Updates

Revenue Growth and Strong Backlog

Sono-Tek experienced a 4% annual revenue growth for fiscal 2025, with consecutive quarters of revenue over $5 million. The company has a solid backlog of $8.6 million, indicating continued revenue growth and profitability in the near term.

Clean Energy Sector Success

Sales to the alternative clean energy market grew 64% over the prior fiscal year, driven by significant orders for integrated coating systems used in solar energy and carbon capture applications.

Expansion in Medical Device Industry

Sono-Tek is seeing strong momentum in the medical device industry, particularly with balloon coating machines for cardiac interventions. This sector is projected to rebound strongly in FY 2026.

Increased Capabilities in Semiconductor Market

The company has developed new coating systems with wafer shuttling capabilities and is expanding its focus on semiconductor fabs, potentially increasing system values to $500,000 to $1 million.

Negative Updates

Challenges in Latin America and China

Sales in Latin America decreased by 34% due to weaker demand in Mexico, and sales in China declined to $522,000 from $775,000 in the prior year, representing a significant drop in the Chinese market.

Potential Decline in Clean Energy Orders

While clean energy orders have been strong, there is anticipation of a decline later in the year due to uncertainties in government support and changing climate policies.

Reduced Demand in Medical Segment

Medical sales declined by 22% for FY 2025, primarily driven by lower demand for stent and balloon coating systems.

Company Guidance

During the Sono-Tek fiscal year 2025 earnings call, the company provided guidance indicating a 4% annual revenue growth, achieving over $5 million in revenue for the fourth consecutive quarter, and maintaining a full-year net income of $1.3 million, similar to the previous year. The company holds a solid backlog of $8.6 million, projecting continued revenue growth and profitability into the first half of fiscal 2026. A strategic shift to more complex, high average selling price (ASP) systems, particularly in the clean energy sector, has bolstered their market position, with sales of integrated coating systems increasing by 28% to $3.7 million. However, the company faces uncertainties in the clean energy sector and potential tariff impacts, although it remains optimistic about continued demand in the medical and semiconductor markets. The company's cash position is strong, with $11.9 million in cash and securities and no debt, anticipating a CapEx of approximately $435,000 for fiscal 2026.

Sono-Tek Financial Statement Overview

Summary

Sono-Tek exhibits strong revenue growth and a healthy balance sheet with no debt, which is a significant strength. However, there are challenges in operational efficiency and cash flow generation, as reflected by lower profit margins and cash flow ratios. Overall, the company's financial health is stable with potential for operational improvements.

Income Statement

Positive

Sono-Tek has demonstrated solid revenue growth with a Revenue Growth Rate of 32.2% from 2023 to 2024 TTM. The Gross Profit Margin for the TTM is 47.9%, indicating strong profitability, although slightly reduced from previous years. The Net Profit Margin stands at 5.5% TTM, reflecting some profitability challenges. The EBIT and EBITDA margins are 3.5% and 6.0% respectively, suggesting room for improvement in operational efficiency.

Balance Sheet

Very Positive

The company maintains a robust financial position with a Debt-to-Equity Ratio of 0, indicating no leverage risk. The Equity Ratio is 71.5% TTM, highlighting financial stability. Return on Equity (ROE) is 6.3% TTM, which shows a moderate return to shareholders. Overall, the balance sheet reflects strong equity and low financial risk.

Cash Flow

Positive

Free Cash Flow Growth Rate is 34.6% TTM, showing a positive trend in free cash generation. However, the Operating Cash Flow to Net Income Ratio of 0.8 TTM indicates less cash being generated from operations relative to net income. The Free Cash Flow to Net Income Ratio of 0.05 TTM is low, suggesting challenges in translating profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.15M	20.50M	19.70M	15.06M	17.13M	14.83M
Gross Profit	9.65M	9.74M	9.84M	7.65M	8.61M	7.00M
EBITDA	1.41M	1.71M	1.78M	1.19M	2.32M	1.85M
Net Income	1.10M	1.27M	1.44M	635.90K	2.54M	1.12M
Balance Sheet
Total Assets	24.34M	23.41M	23.13M	20.17M	17.63M	16.42M
Cash, Cash Equivalents and Short-Term Investments	12.68M	11.93M	11.85M	11.44M	10.71M	8.65M
Total Debt	0.00	0.00	0.00	0.00	0.00	1.00M
Total Liabilities	6.94M	5.62M	6.85M	5.54M	3.88M	5.47M
Stockholders Equity	17.40M	17.79M	16.28M	14.63M	13.74M	10.95M
Cash Flow
Free Cash Flow	49.70K	56.22K	369.18K	769.17K	1.99M	374.83K
Operating Cash Flow	920.86K	525.02K	1.16M	1.33M	2.32M	725.19K
Investing Cash Flow	4.20M	2.55M	-2.38M	-2.81M	-1.63M	-594.58K
Financing Cash Flow	0.00	-7.87K	0.00	0.00	68.78K	293.92K

Sono-Tek Technical Analysis

Technical Analysis Sentiment

Positive

Last Price4.17

Price Trends

50DMA

3.52

Positive

100DMA

3.67

Positive

200DMA

3.81

Positive

Market Momentum

MACD

0.17

Negative

RSI

66.80

Neutral

STOCH

66.50

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOTK, the sentiment is Positive. The current price of 4.17 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 3.52, and above the 200-day MA of 3.81, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 66.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOTK.

Sono-Tek Risk Analysis

Sono-Tek disclosed 39 risk factors in its most recent earnings report. Sono-Tek reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Sono-Tek Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTO	76 Outperform	6.01B	30.36	10.18%	―	15.51%	20.31%
MKSI	74 Outperform	8.64B	33.02	10.42%	0.68%	4.47%	2887.37%
FORM	67 Neutral	2.72B	62.61	4.44%	―	8.30%	-63.69%
KLIC	64 Neutral	2.19B	544.68	0.71%	1.95%	-9.54%	0.00%
SOTK	56 Neutral	$65.58M	46.03	8.17%	―	-2.47%	-16.94%
COHU	56 Neutral	1.05B	-12.08	-10.49%	―	-21.27%	-207.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

SOTK

Sono-Tek

4.17

0.24

6.11%

ELTK

Eltek

10.50

<0.01

0.10%

LPTH

Lightpath Technologies

7.24

6.03

498.35%

MIND

MIND Technology

8.17

4.12

101.73%

LINK

Interlink Electronics

10.27

6.62

181.37%

WRAP

Wrap Technologies

2.59

1.17

82.39%

Sono-Tek Corporate Events

Business Operations and StrategyFinancial Disclosures

Sono-Tek Reports Strong Revenue and Growth in 2025

Positive

Jan 13, 2025

Sono-Tek Corporation reported financial results for the third quarter and nine months of fiscal 2025, highlighting a consistent revenue stream exceeding $5 million for the third consecutive quarter and a 3% year-over-year growth in the first nine months. Despite lower sales in certain regions, the company maintained a strong backlog of $10.6 million, with expectations for over $20 million in revenue and continued profitability for the fiscal year, driven by increased demand in the alternative/clean energy market and advancements in multi-axis coating systems.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 12, 2025