Sono-Tek (SOTK) AI Stock Analysis

• Market Cap: $64.10M
• Dividend Yield: N/A
• Average Volume (3M): 18.53K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.64
• Revenue Growth: -0.21%
• EPS Growth: -0.41%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 15,710,389
• 10 Day Avg. Volume: 21,366
• 30 Day Avg. Volume: 18,533
• 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: 0.83
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 22.52
• 1Y Price Target: $5.00
• Price Target Upside: 20.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $4.50 ▲(8.17% Upside)

The score is driven primarily by a mixed financial profile: a very strong, debt-free balance sheet and ongoing profitability are offset by recent negative operating/free cash flow and a sharp reported TTM revenue decline. Earnings-call commentary supports a moderately positive outlook (backlog strength and medical-device momentum), while technicals are mildly supportive. Valuation remains a key drag due to the elevated P/E and lack of dividend support.

Positive Factors

Balance Sheet Strength

Sono-Tek’s zero debt and multi‑million cash balance provide durable financial flexibility to fund R&D, absorb order timing volatility, and support higher‑ASP system deliveries without needing external financing, lowering solvency risk over the next several quarters.

Margin Sustainability

Consistently high gross margins reflect specialized ultrasonic technology and pricing power on complex systems. Durable margin structure supports profitability even if revenue lags, enabling reinvestment into product development and maintaining operating leverage over 2–6 months.

Medical Market Momentum & Backlog

Repeated multimillion‑dollar medical device orders and a substantial backlog indicate structural adoption in higher‑value segments. Rising medical demand and higher‑ASP systems diversify revenue away from cyclical markets and improve visibility for multi‑quarter revenue conversion.

Negative Factors

Weak Cash Generation

A recent reversal to negative operating and free cash flow signals deteriorating cash conversion, likely from working capital or investment timing. If sustained, it can constrain capex for larger systems, slow backlog conversion, or force external funding despite zero debt.

Revenue Volatility and Decline

Material TTM revenue decline and historically lumpy large orders highlight concentration and timing risk. Reliance on sporadic high‑ASP systems and sector policy swings (clean energy) could keep top‑line uneven and complicate predictable multi‑quarter growth planning.

Executive Agreement Restructuring

Modifications to executive contracts that change resignation definitions can signal governance or retention shifts. Such restructuring may raise turnover or incentive misalignment risks, potentially affecting strategic execution and investor confidence over the medium term.

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 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 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

Mixed fundamentals: a very strong, debt-free balance sheet (88) supports low solvency risk, but TTM cash generation is a key weakness with negative operating and free cash flow (40). Income statement trends are steady but show slowing momentum with essentially flat TTM revenue and margins below prior-cycle peaks (70).

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat (~0.4% growth) after stronger growth in FY2024, pointing to a slowdown in demand momentum. Profitability is solid for the size of the business, with gross margin ~49% and EBITDA margin ~12% in TTM, and net margin improving versus FY2023. However, margins remain well below the FY2022 peak (when net margin was notably higher), indicating earnings power can be volatile across cycles.

Balance Sheet

The balance sheet is a clear strength: total debt is zero in recent periods (TTM and the last several annual reports), which significantly reduces financial risk and interest-rate sensitivity. Equity has grown over time and return on equity is positive (low-to-mid single digits in recent periods, higher in earlier years), but the current return profile is moderate rather than exceptional.

Cash Flow

Cash generation has weakened materially. TTM (Trailing-Twelve-Months) shows negative operating cash flow and negative free cash flow, a sharp reversal from the positive cash flow posted in prior annual periods. While net income remains positive, the current cash flow profile increases reliance on working-capital swings or future improvement to fund growth internally, making cash flow quality the primary near-term concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.50M	19.70M	15.06M	17.13M	14.83M
Gross Profit	9.74M	9.84M	7.65M	8.61M	7.00M
EBITDA	2.23M	2.34M	1.30M	3.34M	1.85M
Net Income	1.27M	1.44M	635.90K	2.54M	1.12M
Balance Sheet
Total Assets	23.41M	23.13M	20.17M	17.63M	16.42M
Cash, Cash Equivalents and Short-Term Investments	11.93M	11.85M	11.44M	10.71M	8.65M
Total Debt	0.00	0.00	0.00	0.00	1.00M
Total Liabilities	5.62M	6.85M	5.54M	3.88M	5.47M
Stockholders Equity	17.79M	16.28M	14.63M	13.74M	10.95M
Cash Flow
Free Cash Flow	56.22K	369.18K	769.17K	1.99M	374.83K
Operating Cash Flow	525.02K	1.16M	1.33M	2.32M	725.19K
Investing Cash Flow	2.55M	-2.38M	-2.81M	-1.63M	-594.58K
Financing Cash Flow	-7.87K	0.00	0.00	68.78K	293.92K

Sono-Tek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.16 is above the 20-day moving average (MA) of 4.04, above the 50-day MA of 4.05, and above the 200-day MA of 3.87, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOTK.

Sono-Tek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	71 Outperform	$50.44M	7.60	178.77%	―	30.11%	481.67%
MIND	66 Neutral	$101.50M	29.27	9.37%	―	2.21%	-15.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	61 Neutral	$64.10M	40.76	8.45%	―	-0.21%	-0.41%
CPSH	60 Neutral	$81.45M	-111.58	-3.84%	―	38.22%	70.68%
OPTX	45 Neutral	$148.05M	-49.38	-27.25%	―	-44.83%	-296.14%
REFR	44 Neutral	$45.76M	-24.20	-87.36%	―	-16.49%	-59.21%

Sono-Tek Corporate Events

Sono-Tek Posts Strong Q3 Profitability Amid Flat Sales

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 $5.0 million yet marked a seventh straight quarter above the $5 million mark, while gross margin expanded to 50% and net income rose 24% to $340,000; for the first nine months, sales were essentially flat at $15.3 million, but gross margin improved to 51% and net income climbed 32% to $1.25 million. The company ended the quarter debt-free with $11.7 million in cash and securities and a record $12.26 million backlog, reflecting strong order momentum driven by high-ASP production systems, medical, electronics and industrial demand, even as policy-driven softness in U.S. alternative energy and electrolysis markets weighed on some product categories and regions. Management highlighted strong growth in in-line coating, OEM and fluxing systems, robust medical and industrial sales, and a mixed geographic picture with higher North American sales offset by declines in Asia Pacific, Latin America and EMEA, underscoring Sono-Tek’s strategic shift toward higher-margin systems and its reinforced positioning for continued, if modest, top-line growth.

The most recent analyst rating on (SOTK) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Sono-Tek stock, see the SOTK Stock Forecast page.

Sono-Tek Reports Strong Q2 2026 Financial Results

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 increase in medical market sales, a 35% rise in net income for the first half, and a 50% sequential increase in backlog, reflecting strong order momentum. Sono-Tek updated its fiscal year 2026 guidance, anticipating modest revenue growth due to increasing demand in the medical device market, despite challenges in the clean energy sector. The company remains focused on its long-term growth strategy, supported by a strong balance sheet and robust customer demand.

Sono-Tek Restructures Executive Agreements for Key Officers

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 expanded definition of ‘Resignation for Good Reason’ and other modifications, potentially impacting the company’s leadership stability and stakeholder confidence.

Sono-Tek Reports Strong Q2 2026 Financial Results

On October 14, 2025, Sono-Tek Corporation reported its financial results for the second quarter and first half of fiscal year 2026, showing a sixth consecutive quarter of revenue over $5 million and a 150% annual increase in medical market sales. The company experienced a 35% increase in net income for the first half of fiscal 2026 and a 50% sequential increase in backlog, reflecting new order momentum. Sono-Tek updated its fiscal year 2026 guidance, anticipating modest revenue growth due to increasing demand in the medical device market, despite challenges from shifts in governmental clean energy and tariff policies.

Sono-Tek Secures $2.8M Order for Coating Systems

On October 13, 2025, Sono-Tek Corporation announced a significant order valued at over $2.8 million for its advanced medical device coating systems from a major U.S.-based medical device manufacturer. This order, from an existing customer expanding production, includes multiple ExactaCoat MD systems with enhanced capabilities, set for delivery in early 2026. This development underscores Sono-Tek’s strong position in the medical device sector and its ability to secure repeat, multi-million-dollar orders, further broadening its base of high-value opportunities.