Sono-Tek Corporation (SOTK)
NASDAQ:SOTK
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Sono-Tek
(NASDAQ:SOTK)
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Rating:57Neutral
Price Target:
$4.00
▲(0.50% Upside)
Action:ReiteratedDate:02/12/26
The score is held back primarily by weakened recent cash generation and a sharp reported TTM revenue decline, partially offset by a very strong, debt-free balance sheet. Technical signals are neutral-to-soft, and valuation is a headwind due to a high P/E with no dividend support.
Positive Factors
Balance sheet strength
A debt-free balance sheet and rising equity provide durable financial flexibility: the company can fund operations, invest in product development, and absorb cyclical downturns without near-term refinancing risk. This underpins strategic shifts into higher-margin systems and supports opportunistic M&A or capex.
Negative Factors
Weakened cash generation
A reversal to negative operating and free cash flow is a durable concern: sustained cash outflows reduce internal funding for working capital, capex, and product development. Even with no debt, prolonged negative cash conversion could force equity raises or constrain growth investments, limiting strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A debt-free balance sheet and rising equity provide durable financial flexibility: the company can fund operations, invest in product development, and absorb cyclical downturns without near-term refinancing risk. This underpins strategic shifts into higher-margin systems and supports opportunistic M&A or capex.
Read all positive factors
Sono-Tek (SOTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.53M
Dividend YieldN/A
Average Volume (3M)18.53K
Price to Earnings (P/E)42.9
Beta (1Y)0.64
Revenue Growth-0.21%
EPS Growth-0.41%
CountryUS
Employees82
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.02
Shares Outstanding15,710,389
10 Day Avg. Volume21,366
30 Day Avg. Volume18,533
Financial Highlights & Ratios
PEG Ratio-3.88
Price to Book (P/B)3.28
Price to Sales (P/S)2.84
P/FCF Ratio1.04K
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue2.80
Enterprise Value/Gross Profit5.61
Enterprise Value/Ebitda21.55
Forecast
1Y Price Target
$5.00Price Target Upside25.63% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)$23.20M
Sono-Tek Business Overview & Revenue Model
Company Description
Sono-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 a...
How the Company Makes Money
Sono-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...
Sono-Tek Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region — U.S., Europe, Asia, etc. — revealing where Sono-Tek wins customers and where it’s exposed to regional slowdowns, trade barriers, or currency swings. A heavy concentration in one geography increases risk; expanding revenue in new regions points to additional growth opportunities and resilience against local downturns.
Breaks down sales by region — U.S., Europe, Asia, etc. — revealing where Sono-Tek wins customers and where it’s exposed to regional slowdowns, trade barriers, or currency swings. A heavy concentration in one geography increases risk; expanding revenue in new regions points to additional growth opportunities and resilience against local downturns.
Data provided by:
The Fly
The FlySono-Tek Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
39
Negative
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.42M | 20.50M | 19.70M | 15.06M | 17.13M | 14.83M |
| Gross Profit | 10.19M | 9.74M | 9.84M | 7.65M | 8.61M | 7.00M |
| EBITDA | 2.65M | 2.23M | 2.34M | 1.30M | 3.34M | 1.85M |
| Net Income | 1.58M | 1.27M | 1.44M | 635.90K | 2.54M | 1.12M |
Balance Sheet | ||||||
| Total Assets | 23.93M | 23.41M | 23.13M | 20.17M | 17.63M | 16.42M |
| Cash, Cash Equivalents and Short-Term Investments | 11.72M | 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 | 4.80M | 5.62M | 6.85M | 5.54M | 3.88M | 5.47M |
| Stockholders Equity | 19.13M | 17.79M | 16.28M | 14.63M | 13.74M | 10.95M |
Cash Flow | ||||||
| Free Cash Flow | -811.23K | 56.22K | 369.18K | 769.17K | 1.99M | 374.83K |
| Operating Cash Flow | -564.64K | 525.02K | 1.16M | 1.33M | 2.32M | 725.19K |
| Investing Cash Flow | -1.99M | 2.55M | -2.38M | -2.81M | -1.63M | -594.58K |
| Financing Cash Flow | -148.38K | -7.87K | 0.00 | 0.00 | 68.78K | 293.92K |
Sono-Tek Technical Analysis
Negative
3.98
Price Trends
4.14
Negative
4.11
Negative
3.95
Positive
Market Momentum
-0.02
Positive
45.31
Neutral
20.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOTK, the sentiment is Negative. The current price of 3.98 is below the 20-day moving average (MA) of 4.13, below the 50-day MA of 4.14, and above the 200-day MA of 3.95, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 20.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $46.87M | 15.02 | 35.41% | ― | 30.11% | 481.67% | |
66 Neutral | $78.00M | 354.27 | 9.95% | ― | 2.21% | -15.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $62.53M | 42.86 | 8.53% | ― | -0.21% | -0.41% | |
52 Neutral | $71.97M | 110.94 | 2.42% | ― | 38.22% | 70.68% | |
49 Neutral | $308.28M | -10.01 | -27.66% | ― | -44.83% | -296.14% | |
44 Neutral | $28.88M | -14.39 | -122.90% | ― | -16.49% | -59.21% |
* Technology Sector Average
SOTK
Sono-Tek
3.98
0.34
9.34%
ACFN
Acorn Energy
18.70
2.71
16.95%
MIND
MIND Technology
8.63
2.40
38.52%
REFR
Research Frontiers
0.83
-0.36
-30.17%
CPSH
CPS Technologies
4.00
2.32
138.10%
OPTX
Syntec Optics Holdings
8.35
6.85
456.67%
Sono-Tek Corporate Events
Business Operations and StrategyFinancial Disclosures
Sono-Tek Posts Strong Q3 Profitability Amid Flat Sales
Positive
Jan 13, 2026
On January 13, 2026, Sono-Tek reported its fiscal third-quarter and nine-month 2026 results for the period ended November 30, 2025, showing stable revenue but significantly improved profitability and margins. Quarterly net sales edged down 4% to $...
Business Operations and StrategyFinancial Disclosures
Sono-Tek Reports Strong Q2 2026 Financial Results
Positive
Nov 12, 2025
On October 14, 2025, Sono-Tek Corporation announced its financial results for the second quarter and first half of fiscal year 2026, reporting a sixth consecutive quarter with revenues exceeding $5 million. The company experienced a 150% annual in...
Executive/Board Changes
Sono-Tek Restructures Executive Agreements for Key Officers
Neutral
Nov 12, 2025
On November 5, 2025, Sono-Tek Corporation restructured its executive agreements with key officers, including the CEO, Executive Chairman, CFO, and COO. The new agreements, which replace the original ones, maintain similar terms but include an expa...
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.