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Sono-Tek
(NASDAQ:SOTK)
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Rating:72Outperform
Price Target:
$6.50
▲(32.92% Upside)
Action:Reiterated
Date:10/01/26
The score is driven primarily by strong financial quality—especially a debt-free balance sheet—and improving profitability/cash generation. Technicals are constructive with the stock above key moving averages, but near-overbought momentum indicators add pullback risk. Valuation remains the main drawback due to a high P/E, and while recent quarterly performance was strong, outlook commentary implies limited full-year upside and ongoing end-market/timing uncertainty.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet removes leverage pressure and preserves financial flexibility. Sono-Tek can therefore direct internally generated funds toward product development, customer support, and capacity needs while remaining better positioned to withstand cyclical order timing or weaker end-market demand.
Negative Factors
Uneven revenue growth
The inconsistent top-line trajectory makes forward growth less dependable than the recent improvement alone suggests. Uneven revenue can complicate production planning, limit operating leverage, and make it harder for Sono-Tek to sustain margin gains through changing customer investment cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet removes leverage pressure and preserves financial flexibility. Sono-Tek can therefore direct internally generated funds toward product development, customer support, and capacity needs while remaining better positioned to withstand cyclical order timing or weaker end-market demand.
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
$97.44M
Dividend YieldN/A
Average Volume (3M)75.76K
Price to Earnings (P/E)46.2
Beta (1Y)0.24
Revenue Growth4.04%
EPS Growth44.65%
CountryUS
Employees84
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.14
Shares Outstanding15,716,723
10 Day Avg. Volume140,252
30 Day Avg. Volume75,756
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$5.00Price Target Upside2.25% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.11
Revenue Forecast (FY)$21.70M
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: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
4.89
Price Trends
5.08
Positive
5.18
Positive
4.69
Positive
Market Momentum
0.19
Negative
72.45
Negative
78.46
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 4.89 is below the 20-day moving average (MA) of 4.91, below the 50-day MA of 5.08, and above the 200-day MA of 4.69, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 72.45 is Negative, neither overbought nor oversold. The STOCH value of 78.46 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $97.44M | 46.23 | 10.54% | ― | 4.04% | 44.65% | |
70 Outperform | $47.73M | 30.71 | 18.95% | 7635.60% | -27.50% | -78.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $25.40M | -11.04 | -168.53% | ― | -46.47% | -26.00% | |
47 Neutral | $74.45M | 834.78 | 0.15% | ― | 25.56% | ― | |
46 Neutral | $40.99M | -17.19 | -5.77% | 1.53% | -28.46% | -147.43% | |
46 Neutral | $368.16M | -146.71 | -16.50% | ― | 1.48% | -53.38% |
* Technology Sector Average
SOTK
Sono-Tek
6.20
1.70
37.78%
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19.02
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4.51
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REFR
Research Frontiers
0.73
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-52.73%
CPSH
CPS Technologies
3.84
0.08
2.13%
OPTX
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9.14
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402.20%
Sono-Tek Corporate Events
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...
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...
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.