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Sono-Tek
(NASDAQ:SOTK)
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Rating:71Outperform
Price Target:
$6.00
▲(22.70% Upside)
Action:Reiterated
Date:10/20/26
The score is driven primarily by strong financial performance (notably debt-free balance sheet, strong recent revenue/margin performance, and sharply improved TTM free cash flow), supported by a positive earnings-call outlook and sizable backlog visibility into fiscal 2028. Offsetting this are a high valuation (P/E ~43 with no dividend yield) and only mixed technical momentum (below the 20-day average with subdued RSI/Stoch), which together cap the overall score.
Positive Factors
Revenue and Profit Growth
TTM growth and healthy margins show stronger demand conversion and improved operating leverage, while first-half results confirm momentum across revenue and profit. If sustained, this combination can support reinvestment and strengthen earnings capacity over the next several quarters.
Negative Factors
Order Timing and Revenue Variability
The flat-to-modest fiscal 2027 outlook and delayed shipment schedule create a gap between order wins and reported revenue. This timing can produce uneven quarterly results and makes near-term growth dependent on execution and customer delivery schedules.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Growth
TTM growth and healthy margins show stronger demand conversion and improved operating leverage, while first-half results confirm momentum across revenue and profit. If sustained, this combination can support reinvestment and strengthen earnings capacity 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
$82.85M
Dividend YieldN/A
Average Volume (3M)146.98K
Price to Earnings (P/E)41.4
Beta (1Y)0.35
Revenue Growth4.37%
EPS Growth32.92%
CountryUS
Employees84
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.13
Shares Outstanding15,751,736
10 Day Avg. Volume181,740
30 Day Avg. Volume146,984
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 Cap0.80
Enterprise Value/Revenue3.08
Enterprise Value/Gross Profit5.86
Enterprise Value/Ebitda21.14
Forecast
1Y Price Target
$5.00Price Target Upside2.25% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.11
Revenue Forecast (FY)$21.69M
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 capital equipment—ultrasonic spray coating and liquid processing systems—directly to customers that integrate these tools into production lines or use them in laboratory/process development environments. R...
Sono-Tek Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 19, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported first-half revenue growth, substantial operating-profit and net-income growth, gross-margin expansion, a strong debt-free balance sheet, record alternative-energy orders, major medical-market growth, and increasing backlog visibility into fiscal 2028. The primary challenges were reduced alternative-energy demand tied to government policy, a 14% decline in inline coating systems, a 9% second-quarter operating-income decline, possible near-term gross-margin normalization, order-timing variability, and the need to invest in capacity and specialized personnel.Positive Updates
First-Half Revenue and Profitability Growth
Fiscal 2027 first-half revenue increased 6% to approximately $10.9 million, gross profit increased 14% to approximately $6.0 million, gross margin expanded to 55% from 51%, operating income increased 41% to approximately $1.28 million, and net income increased 22% to approximately $1.1 million.
Negative Updates
Second-Quarter Operating Income Declined
Second-quarter operating income decreased 9%, or $39,000, to $382,000 because of an increase in operating expenses.
Read all updates
Q2-2027 Updates
Positive
Negative
First-Half Revenue and Profitability Growth
Fiscal 2027 first-half revenue increased 6% to approximately $10.9 million, gross profit increased 14% to approximately $6.0 million, gross margin expanded to 55% from 51%, operating income increased 41% to approximately $1.28 million, and net income increased 22% to approximately $1.1 million.
Read all positive updates
Company Guidance
Management is reiterating its expectation for flat to modest revenue growth for the current fiscal 27; the 10 systems from the $7.19 million alternative energy orders are currently expected to ship primarily during fiscal 28, and the majority of the more than $10.79 million of backlog from those orders and the more than $3.6 million medical diagnostic production line order is currently expected to be delivered in fiscal year 28. The company expects to begin a major expansion at the end of this current calendar year, “like December, maybe January,” increasing manufacturing capacity from approximately $27 million to around $33 million to $36 million, followed by a retrofit costing about a $600 thousand CapEx investment that would take capacity to around $44 million to $45 million; it will start the planning phase to move from 45 to 85. Initial CapEx is estimated at around 700 thousand, with New York State potentially contributing 150 thousand to $200 thousand. The forward-deployed engineering team may be doubled in another year or 2, maybe even quicker, while semiconductor applications could have a significant impact in 1, 2 years, maybe even 3 years, with some initial impact within, say, like a year.Sono-Tek Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.51M | 20.91M | 20.50M | 19.70M | 15.06M | 17.13M |
| Gross Profit | 11.29M | 10.56M | 9.74M | 9.84M | 7.65M | 8.61M |
| EBITDA | 3.13M | 2.94M | 2.23M | 2.34M | 1.30M | 3.34M |
| Net Income | 2.00M | 1.81M | 1.27M | 1.44M | 635.90K | 2.54M |
Balance Sheet | ||||||
| Total Assets | 26.40M | 26.42M | 23.41M | 23.13M | 20.17M | 17.63M |
| Cash, Cash Equivalents and Short-Term Investments | 17.76M | 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 | 5.33M | 6.65M | 5.62M | 6.85M | 5.54M | 3.88M |
| Stockholders Equity | 21.06M | 19.77M | 17.79M | 16.28M | 14.63M | 13.74M |
Cash Flow | ||||||
| Free Cash Flow | 7.23M | 3.02M | 56.22K | 369.18K | 769.17K | 1.99M |
| Operating Cash Flow | 7.45M | 3.25M | 525.02K | 1.16M | 1.33M | 2.32M |
| Investing Cash Flow | -1.05M | -968.03K | 2.55M | -2.38M | -2.81M | -1.63M |
| Financing Cash Flow | 20.50K | -140.51K | -7.87K | 0.00 | 0.00 | 68.78K |
Sono-Tek Technical Analysis
Negative
4.89
Price Trends
5.38
Negative
5.35
Negative
4.85
Positive
Market Momentum
<0.01
Positive
41.99
Neutral
8.73
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 4.89 is below the 20-day moving average (MA) of 6.06, below the 50-day MA of 5.38, and above the 200-day MA of 4.85, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 8.73 is Positive, 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 | $82.85M | 41.38 | 9.95% | ― | 4.37% | 32.92% | |
70 Outperform | $43.27M | 27.84 | 18.95% | 7635.60% | -27.50% | -78.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $68.05M | 763.04 | 0.15% | ― | 25.56% | ― | |
46 Neutral | $37.08M | -15.55 | -5.77% | 1.53% | -28.46% | -147.43% | |
43 Neutral | $16.07M | -6.98 | -168.53% | ― | -46.47% | -26.00% | |
42 Neutral | $269.47M | -107.38 | -16.50% | ― | 1.48% | -53.38% |
* Technology Sector Average
SOTK
Sono-Tek
5.26
0.64
13.85%
ACFN
Acorn Energy
17.24
-7.77
-31.07%
MIND
MIND Technology
4.08
-7.01
-63.21%
REFR
Research Frontiers
0.46
-1.90
-80.47%
CPSH
CPS Technologies
3.51
-0.30
-7.87%
OPTX
Syntec Optics Holdings
6.69
4.16
164.43%
Sono-Tek Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Sono-Tek Releases Informational Quarterly Financial Results Update
Neutral
Oct 14, 2026
On October 14, 2026, Sono-Tek Corporation announced that it had released its financial results for the quarter ended August 31, 2026, providing investors and stakeholders with updated information on its recent performance. The disclosure was furni...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Sono-Tek shareholders reaffirm board and auditor oversight
Positive
Aug 20, 2026
At Sono-Tek Corporation’s annual meeting of shareholders held on August 20, 2026, investors elected three nominees — Eric Haskell, Adeniyi Lawal and Carol O’Donnell — to the Board of Directors to serve until the 2028 annual...
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.