Sono-Tek Corporation (SOTK)
NASDAQ:SOTK
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Sono-Tek
(NASDAQ:SOTK)
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Rating:69Neutral
Price Target:
$5.50
▲(35.14% Upside)
Action:Downgraded
Date:05/29/26
The score is driven primarily by strong financial health (notably a debt-free balance sheet) and an earnings update showing improved margins and cash generation, partially offset by visibility/timing risks in FY2027 guidance. Technicals are broadly constructive but neutral near-term, while a high P/E and lack of dividend support weigh on the valuation component.
Positive Factors
Balance Sheet Strength
Sono-Tek's effectively zero debt and growing equity provide durable financial flexibility. With $14.8M cash and $16.2M working capital, the company can fund R&D, absorb order timing volatility, invest in product development, and support multi-year contracts without relying on external financing.
Negative Factors
Revenue Visibility & Order Timing
Dependence on a few large, long‑lead-time orders creates persistent lumpiness in revenues. This structural timing risk complicates planning, makes multi-quarter forecasting unreliable, and can create swings in working capital and utilization that pressure operating performance despite underlying demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Sono-Tek's effectively zero debt and growing equity provide durable financial flexibility. With $14.8M cash and $16.2M working capital, the company can fund R&D, absorb order timing volatility, invest in product development, and support multi-year contracts without relying on external financing.
Read all positive factors
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.
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The Fly
The FlySono-Tek (SOTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.42M
Dividend YieldN/A
Average Volume (3M)18.53K
Price to Earnings (P/E)42.3
Beta (1Y)0.44
Revenue Growth1.97%
EPS Growth42.20%
CountryUS
Employees82
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.11
Shares Outstanding15,710,389
10 Day Avg. Volume21,366
30 Day Avg. Volume18,533
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)3.41
Price to Sales (P/S)3.23
P/FCF Ratio22.32
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue3.30
Enterprise Value/Gross Profit6.54
Enterprise Value/Ebitda37.82
Forecast
1Y Price Target
$5.00Price Target Upside22.85% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.13
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 primarily makes money by selling ultrasonic coating equipment (including complete coating systems and integrated coating modules) to manufacturers and laboratories that need controlled thin-film deposition and precision dispensing. Revenu...
Sono-Tek Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call highlights strong profitability expansion, margin improvement, improved operating cash flow and a strategic shift to higher-value, high-ASP production systems with notable growth in medical and electronics markets. These positives are tempered by sector-specific headwinds in clean energy, lumpiness and reduced near-term bookings, international softness, and visibility risks around timing of large orders. Overall the company appears financially healthy and executing on strategy, but faces near-term revenue timing uncertainty tied to large, complex orders and market policy dynamics.Positive Updates
Record Revenue and Consistent Quarterly Performance
Fiscal 2026 revenue of $20.9M, up 2% from $20.5M a year ago; second consecutive year above $20M and eight consecutive quarters above $5M each.
Negative Updates
Clean Energy Demand Decline
Clean energy market revenue declined 19% due to reduced electrolysis-related demand from government policy shifts; overall clean energy demand described as currently weak and contributing to lumpiness.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Consistent Quarterly Performance
Fiscal 2026 revenue of $20.9M, up 2% from $20.5M a year ago; second consecutive year above $20M and eight consecutive quarters above $5M each.
Read all positive updates
Company Guidance
Management guided to continued revenue growth and profitability in the first half of FY2027, driven by medical and high‑ASP production systems, and expects full‑year FY2027 revenues to be relatively flat to modestly higher versus FY2026 ($20.9M), while warning that visibility beyond H1 is limited because of policy‑driven weakness in some clean‑energy demand and the long lead times/timing variability of larger orders; relevant metrics cited include FY2026 gross margin 51%, operating income $1.82M (9% margin), net income $1.8M, backlog ≈$9.12M, cash and marketable securities $14.8M, working capital $16.2M, operating cash flow $3.2M, no debt, and management said clearer guidance will depend on whether new high‑ASP orders arrive in the next 1–2 months.Sono-Tek Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.91M | 20.50M | 19.70M | 15.06M | 17.13M |
| Gross Profit | 10.56M | 9.74M | 9.84M | 7.65M | 8.61M |
| EBITDA | 1.82M | 2.23M | 2.34M | 1.30M | 3.34M |
| Net Income | 1.81M | 1.27M | 1.44M | 635.90K | 2.54M |
Balance Sheet | |||||
| Total Assets | 26.42M | 23.41M | 23.13M | 20.17M | 17.63M |
| Cash, Cash Equivalents and Short-Term Investments | 14.81M | 11.93M | 11.85M | 11.44M | 10.71M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 6.65M | 5.62M | 6.85M | 5.54M | 3.88M |
| Stockholders Equity | 19.77M | 17.79M | 16.28M | 14.63M | 13.74M |
Cash Flow | |||||
| Free Cash Flow | 3.02M | 56.22K | 369.18K | 769.17K | 1.99M |
| Operating Cash Flow | 3.25M | 525.02K | 1.16M | 1.33M | 2.32M |
| Investing Cash Flow | -968.03K | 2.55M | -2.38M | -2.81M | -1.63M |
| Financing Cash Flow | -140.51K | -7.87K | 0.00 | 0.00 | 68.78K |
Sono-Tek Technical Analysis
Neutral
4.07
Price Trends
4.50
Positive
4.33
Positive
4.17
Positive
Market Momentum
0.17
Positive
49.70
Neutral
54.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOTK, the sentiment is Neutral. The current price of 4.07 is below the 20-day moving average (MA) of 5.02, below the 50-day MA of 4.50, and below the 200-day MA of 4.17, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $83.42M | 42.31 | 8.53% | ― | 1.97% | 42.20% | |
66 Neutral | $42.36M | 21.47 | 25.68% | ― | -11.25% | -70.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $208.70M | 6,611.98 | 0.15% | ― | 41.39% | ― | |
56 Neutral | $63.99M | 83.29 | 2.19% | ― | -12.62% | -69.66% | |
50 Neutral | $480.14M | -135.32 | -30.86% | ― | -5.93% | -215.06% | |
45 Neutral | $26.14M | -10.85 | -122.90% | ― | -55.89% | -127.24% |
* Technology Sector Average
SOTK
Sono-Tek
4.86
1.07
28.23%
ACFN
Acorn Energy
16.87
-1.09
-6.07%
MIND
MIND Technology
6.91
0.66
10.56%
REFR
Research Frontiers
0.76
-1.07
-58.47%
CPSH
CPS Technologies
11.10
8.04
262.75%
OPTX
Syntec Optics Holdings
11.04
9.32
541.86%
Sono-Tek Corporate Events
Business Operations and StrategyFinancial Disclosures
Sono-Tek Posts Strong Fiscal 2026 Results, Outlook Cautious
Positive
May 28, 2026
On May 28, 2026, Sono-Tek reported results for the fiscal year ended February 28, 2026, marking its second consecutive year with revenue above $20 million and eighth straight quarter over $5 million. Fiscal 2026 net sales rose 2% to $20.9 million,...
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.