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Sono-Tek
(NASDAQ:SOTK)
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Rating:71Outperform
Price Target:
$5.50
▲(35.14% Upside)
Action:Upgraded
Date:07/08/26
Overall score reflects strong underlying financial health (notably no debt, improving margins, and better cash generation) and a reasonably constructive earnings outlook focused on higher-value systems, tempered by cautious/limited-visibility guidance and order-timing lumpiness. The primary drag is valuation (high P/E), while technicals are neutral-to-soft in the near term.
Positive Factors
Balance-sheet strength
Zero reported debt and steadily rising equity give Sono-Tek durable financial flexibility. A strong cash position and no leverage support investment in product development, absorption of order timing swings, and optionality for strategic spending or dividend/buyback choices without stressing liquidity over the next several quarters.
Negative Factors
Revenue and cash-flow volatility
Past uneven top-line performance and previously weak free cash flow indicate earnings and cash generation are still cyclical. For capital-equipment firms like Sono-Tek, this lumpy pattern can persist as large orders shift between quarters, complicating capital allocation, hiring, and multi-quarter forecasting.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Zero reported debt and steadily rising equity give Sono-Tek durable financial flexibility. A strong cash position and no leverage support investment in product development, absorption of order timing swings, and optionality for strategic spending or dividend/buyback choices without stressing liquidity over the next several quarters.
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
$86.76M
Dividend YieldN/A
Average Volume (3M)18.53K
Price to Earnings (P/E)42.1
Beta (1Y)0.38
Revenue Growth4.04%
EPS Growth44.65%
CountryUS
Employees82
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.14
Shares Outstanding15,716,723
10 Day Avg. Volume21,366
30 Day Avg. Volume18,533
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)3.41
Price to Sales (P/S)3.23
P/FCF Ratio22.32
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue3.34
Enterprise Value/Gross Profit6.44
Enterprise Value/Ebitda22.39
Forecast
1Y Price Target
$5.00Price Target Upside22.85% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.13
Revenue Forecast (FY)$21.73M
Sono-Tek Business Overview & Revenue Model
Company Description
Sono-Tek Corporation specializes in the development and production of advanced ultrasonic coating systems. These systems are employed globally to apply precise coatings onto parts and components across a wide range of industries, including microel...
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:Oct 20, 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
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.44M | 20.91M | 20.50M | 19.70M | 15.06M | 17.13M |
| Gross Profit | 11.11M | 10.56M | 9.74M | 9.84M | 7.65M | 8.61M |
| EBITDA | 3.19M | 2.94M | 2.23M | 2.34M | 1.30M | 3.34M |
| Net Income | 2.06M | 1.81M | 1.27M | 1.44M | 635.90K | 2.54M |
Balance Sheet | ||||||
| Total Assets | 25.86M | 26.42M | 23.41M | 23.13M | 20.17M | 17.63M |
| Cash, Cash Equivalents and Short-Term Investments | 16.65M | 14.81M | 11.93M | 11.85M | 11.44M | 10.71M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 5.25M | 6.65M | 5.62M | 6.85M | 5.54M | 3.88M |
| Stockholders Equity | 20.61M | 19.77M | 17.79M | 16.28M | 14.63M | 13.74M |
Cash Flow | ||||||
| Free Cash Flow | 5.85M | 3.02M | 56.22K | 369.18K | 769.17K | 1.99M |
| Operating Cash Flow | 6.11M | 3.25M | 525.02K | 1.16M | 1.33M | 2.32M |
| Investing Cash Flow | -1.94M | -968.03K | 2.55M | -2.38M | -2.81M | -1.63M |
| Financing Cash Flow | -51.14K | -140.51K | -7.87K | 0.00 | 0.00 | 68.78K |
Sono-Tek Technical Analysis
Positive
4.07
Price Trends
5.19
Positive
4.66
Positive
4.42
Positive
Market Momentum
0.10
Positive
53.75
Neutral
35.26
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 4.07 is below the 20-day moving average (MA) of 5.35, below the 50-day MA of 5.19, and below the 200-day MA of 4.42, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $86.76M | 42.13 | 9.52% | ― | 4.04% | 44.65% | |
65 Neutral | $42.41M | 21.47 | 25.68% | ― | -11.25% | -70.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $46.99M | 32.54 | 3.45% | ― | -5.26% | -11.19% | |
45 Neutral | $94.61M | 835.09 | 0.15% | ― | 41.39% | ― | |
45 Neutral | $342.38M | ― | -30.86% | ― | -5.93% | -215.06% | |
44 Neutral | $18.61M | -7.88 | -122.90% | ― | -55.89% | -127.24% |
* Technology Sector Average
SOTK
Sono-Tek
5.54
1.93
53.46%
ACFN
Acorn Energy
17.25
0.99
6.09%
MIND
MIND Technology
5.45
-2.17
-28.48%
REFR
Research Frontiers
0.55
-1.05
-65.63%
CPSH
CPS Technologies
4.78
2.26
89.68%
OPTX
Syntec Optics Holdings
9.09
7.76
583.46%
Sono-Tek Corporate Events
Business Operations and StrategyFinancial Disclosures
Sono-Tek Posts Strong Q1 Fiscal 2027 Results
Positive
Jul 8, 2026
On July 8, 2026, Sono-Tek reported strong results for the first quarter of fiscal 2027, ended May 31, 2026, with net sales up 10% to $5.66 million and gross margin rising to 57% from 52%, driven mainly by medical-sector demand. Operating income su...
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.