Sono-Tek (SOTK) AI Stock Analysis

• Market Cap: $58.27M
• Dividend Yield: N/A
• Average Volume (3M): 36.35K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.72
• Revenue Growth: -0.21%
• EPS Growth: -0.41%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 15,707,062
• 10 Day Avg. Volume: 20,640
• 30 Day Avg. Volume: 36,355
• PEG Ratio: -3.88
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 1.04K
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 16.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): $20.65M

• Rating: 56 Neutral
• 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt enhances financial stability and provides flexibility for future investments and growth opportunities.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Market Demand

Growing demand in the clean energy sector provides a sustainable growth avenue, aligning with global trends towards renewable energy solutions.

Negative Factors

Operational Efficiency Challenges

Low operational margins indicate inefficiencies that could hinder profitability, requiring strategic improvements to enhance cost management.

Cash Flow Generation

Weak cash flow generation limits the company's ability to reinvest in growth opportunities and may affect long-term financial health.

Profitability Challenges

Lower net profit margins suggest potential issues in cost control or pricing power, impacting overall profitability and shareholder returns.

Sono-Tek Business Overview & Revenue Model

Company Description

Sono-Tek Corporation (SOTK) is a leading developer and manufacturer of ultrasonic coating systems. These systems are used in a variety of industries including electronics, medical devices, advanced energy, and industrial applications. The company's core products offer precise, uniform thin-film coatings that are critical for high-performance and specialized applications. Sono-Tek's technology is known for its efficiency, precision, and ability to reduce material waste.

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 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 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

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

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

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	20.61M	20.50M	19.70M	15.06M	17.13M	14.83M
Gross Profit	10.02M	9.74M	9.84M	7.65M	8.61M	7.00M
EBITDA	2.54M	2.23M	2.34M	1.30M	3.34M	1.85M
Net Income	1.51M	1.27M	1.44M	635.90K	2.54M	1.12M
Balance Sheet
Total Assets	23.19M	23.41M	23.13M	20.17M	17.63M	16.42M
Cash, Cash Equivalents and Short-Term Investments	10.57M	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	4.49M	5.62M	6.85M	5.54M	3.88M	5.47M
Stockholders Equity	18.70M	17.79M	16.28M	14.63M	13.74M	10.95M
Cash Flow
Free Cash Flow	-874.56K	56.22K	369.18K	769.17K	1.99M	374.83K
Operating Cash Flow	-483.64K	525.02K	1.16M	1.33M	2.32M	725.19K
Investing Cash Flow	-1.38M	2.55M	-2.38M	-2.81M	-1.63M	-594.58K
Financing Cash Flow	-158.99K	-7.87K	0.00	0.00	68.78K	293.92K

Sono-Tek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.08 is below the 20-day moving average (MA) of 4.28, below the 50-day MA of 4.33, and above the 200-day MA of 3.84, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 30.06 is Neutral, neither overbought nor oversold. The STOCH value of 12.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOTK.

Sono-Tek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	68 Neutral	$57.40M	8.08	178.77%	―	30.11%	481.67%
MIND	66 Neutral	$70.77M	16.31	16.05%	―	27.70%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CPSH	58 Neutral	$63.29M	-86.70	-3.84%	―	38.22%	70.68%
SOTK	56 Neutral	$58.27M	38.69	8.45%	―	-0.21%	-0.41%
REFR	55 Neutral	$58.88M	-33.46	-87.36%	―	-16.49%	-59.21%
OPTX	40 Underperform	$88.61M	-55.94	-27.25%	―	-44.83%	-296.14%

Sono-Tek Corporate Events

Sono-Tek Reports Strong Revenue and Growth in 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.