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Sono-Tek Corporation (SOTK)
NASDAQ:SOTK
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Sono-Tek
(NASDAQ:SOTK)
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Rating:56Neutral
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.
Sono-Tek (SOTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.87M
Dividend YieldN/A
Average Volume (3M)31.35K
Price to Earnings (P/E)43.1
Beta (1Y)0.63
Revenue Growth-0.21%
EPS Growth-0.41%
CountryUS
Employees82
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.03
Shares Outstanding15,727,702
10 Day Avg. Volume23,093
30 Day Avg. Volume31,354
Financial Highlights & Ratios
PEG Ratio-3.88
Price to Book (P/B)3.28
Price to Sales (P/S)2.84
P/FCF Ratio1.04K
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue2.08
Enterprise Value/Gross Profit4.31
Enterprise Value/Ebitda20.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Sono-Tek Business Overview & Revenue Model
Company DescriptionSono-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 MoneySono-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 Earnings Call Summary
Earnings Call Date:Oct 14, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 20, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong revenue growth and backlog, particularly in the clean energy and medical device sectors. However, there are challenges with declining sales in China and Latin America, and potential uncertainties in clean energy orders due to policy shifts. Despite these challenges, the expansion into high-value markets and successful strategic initiatives provide a positive sentiment overall.Q4-2025 Updates
Positive Updates
Revenue Growth and Strong Backlog
Sono-Tek experienced a 4% annual revenue growth for fiscal 2025, with consecutive quarters of revenue over $5 million. The company has a solid backlog of $8.6 million, indicating continued revenue growth and profitability in the near term.
Clean Energy Sector Success
Sales to the alternative clean energy market grew 64% over the prior fiscal year, driven by significant orders for integrated coating systems used in solar energy and carbon capture applications.
Expansion in Medical Device Industry
Sono-Tek is seeing strong momentum in the medical device industry, particularly with balloon coating machines for cardiac interventions. This sector is projected to rebound strongly in FY 2026.
Increased Capabilities in Semiconductor Market
The company has developed new coating systems with wafer shuttling capabilities and is expanding its focus on semiconductor fabs, potentially increasing system values to $500,000 to $1 million.
Negative Updates
Challenges in Latin America and China
Sales in Latin America decreased by 34% due to weaker demand in Mexico, and sales in China declined to $522,000 from $775,000 in the prior year, representing a significant drop in the Chinese market.
Potential Decline in Clean Energy Orders
While clean energy orders have been strong, there is anticipation of a decline later in the year due to uncertainties in government support and changing climate policies.
Reduced Demand in Medical Segment
Medical sales declined by 22% for FY 2025, primarily driven by lower demand for stent and balloon coating systems.
Company Guidance
During the Sono-Tek fiscal year 2025 earnings call, the company provided guidance indicating a 4% annual revenue growth, achieving over $5 million in revenue for the fourth consecutive quarter, and maintaining a full-year net income of $1.3 million, similar to the previous year. The company holds a solid backlog of $8.6 million, projecting continued revenue growth and profitability into the first half of fiscal 2026. A strategic shift to more complex, high average selling price (ASP) systems, particularly in the clean energy sector, has bolstered their market position, with sales of integrated coating systems increasing by 28% to $3.7 million. However, the company faces uncertainties in the clean energy sector and potential tariff impacts, although it remains optimistic about continued demand in the medical and semiconductor markets. The company's cash position is strong, with $11.9 million in cash and securities and no debt, anticipating a CapEx of approximately $435,000 for fiscal 2026.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.75
Positive
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.85
Very Positive
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.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.61M | 20.50M | 15.06M | 17.13M | 14.83M | 11.61M |
| Gross Profit | 9.95M | 9.74M | 7.65M | 8.61M | 7.00M | 5.25M |
| EBITDA | 2.07M | 1.71M | 1.19M | 2.32M | 1.85M | 414.63K |
| Net Income | 1.43M | 1.27M | 635.90K | 2.54M | 1.12M | 161.59K |
Balance Sheet | ||||||
| Total Assets | 23.42M | 23.41M | 20.17M | 17.63M | 16.42M | 12.20M |
| Cash, Cash Equivalents and Short-Term Investments | 10.85M | 11.93M | 11.44M | 10.71M | 8.65M | 5.51M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 1.00M | 870.53K |
| Total Liabilities | 5.15M | 5.62M | 5.54M | 3.88M | 5.47M | 3.62M |
| Stockholders Equity | 18.27M | 17.79M | 14.63M | 13.74M | 10.95M | 8.58M |
Cash Flow | ||||||
| Free Cash Flow | -1.21M | 56.22K | 769.17K | 1.99M | 374.83K | -656.23K |
| Operating Cash Flow | -725.24K | 525.02K | 1.33M | 2.32M | 725.19K | -108.98K |
| Investing Cash Flow | 3.27M | 2.55M | -2.81M | -1.63M | -594.58K | 1.39M |
| Financing Cash Flow | -87.35K | -7.87K | 0.00 | 68.78K | 293.92K | -156.12K |
Sono-Tek Technical Analysis
Positive
4.20
Price Trends
3.85
Positive
3.74
Positive
3.79
Positive
Market Momentum
0.08
Positive
51.90
Neutral
12.37
Positive
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 4.2 is below the 20-day moving average (MA) of 4.31, above the 50-day MA of 3.85, and above the 200-day MA of 3.79, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 12.37 is Positive, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $64.04M | 9.01 | 222.70% | ― | 50.98% | 1506.44% | |
67 Neutral | $78.66M | 18.12 | 16.05% | ― | 27.70% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $71.92M | ― | -11.74% | ― | 7.47% | -133.39% | |
56 Neutral | $64.87M | 43.07 | 8.45% | ― | -0.21% | -0.41% | |
54 Neutral | $90.09M | 37.44 | -13.59% | ― | -32.52% | -218.84% | |
49 Neutral | $54.34M | ― | -73.36% | ― | -4.46% | -17.79% |
* Technology Sector Average
SOTK
Sono-Tek
4.20
-0.29
-6.46%
ACFN
Acorn Energy
24.47
13.12
115.59%
MIND
MIND Technology
9.42
5.80
160.22%
REFR
Research Frontiers
1.62
-0.39
-19.40%
CPSH
CPS Technologies
4.00
2.58
181.69%
OPTX
Syntec Optics Holdings
2.33
0.95
68.84%
Sono-Tek Corporate Events
Business Operations and StrategyFinancial Disclosures
Sono-Tek Reports Strong Revenue and Growth in 2025
Positive
Jan 13, 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.
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.