4.13 USD
+0.02 (+0.49%)
4 USD
-0.13 (-3.15%)
SOTK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. SOTK is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, SOTK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year SOTK was profitable.
- In the past year SOTK has reported a negative cash flow from operations.
- Each year in the past 5 years SOTK has been profitable.
- In the past 5 years SOTK always reported a positive cash flow from operatings.
1.2 Ratios
- SOTK has a Return On Assets of 6.52%. This is in the better half of the industry: SOTK outperforms 79.67% of its industry peers.
- With a decent Return On Equity value of 8.08%, SOTK is doing good in the industry, outperforming 67.48% of the companies in the same industry.
- SOTK's Return On Invested Capital of 6.13% is fine compared to the rest of the industry. SOTK outperforms 63.41% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SOTK is below the industry average of 8.87%.
- The 3 year average ROIC (4.81%) for SOTK is below the current ROIC(6.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.52% | ||
| ROE | 8.08% | ||
| ROIC | 6.13% |
ROA(3y)4.95%
ROA(5y)7.21%
ROE(3y)6.8%
ROE(5y)9.82%
ROIC(3y)4.81%
ROIC(5y)6.95%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.33%, SOTK is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
- SOTK's Profit Margin has declined in the last couple of years.
- SOTK has a Operating Margin of 6.75%. This is in the better half of the industry: SOTK outperforms 70.73% of its industry peers.
- In the last couple of years the Operating Margin of SOTK has declined.
- SOTK has a Gross Margin of 48.64%. This is amongst the best in the industry. SOTK outperforms 85.37% of its industry peers.
- In the last couple of years the Gross Margin of SOTK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.75% | ||
| PM (TTM) | 7.33% | ||
| GM | 48.64% |
OM growth 3Y-23.44%
OM growth 5Y-7.56%
PM growth 3Y-25.18%
PM growth 5Y-3%
GM growth 3Y-1.87%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOTK is destroying value.
- SOTK has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for SOTK has been increased compared to 5 years ago.
- SOTK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 10.99 indicates that SOTK is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SOTK (10.99) is better than 88.62% of its industry peers.
- There is no outstanding debt for SOTK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.99 |
ROIC/WACC0.69
WACC8.88%
2.3 Liquidity
- SOTK has a Current Ratio of 4.34. This indicates that SOTK is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.34, SOTK is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
- A Quick Ratio of 3.40 indicates that SOTK has no problem at all paying its short term obligations.
- SOTK has a better Quick ratio (3.40) than 77.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.34 | ||
| Quick Ratio | 3.4 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 42.86% over the past year.
- The Earnings Per Share has been growing slightly by 2.91% on average over the past years.
- The Revenue has been growing slightly by 4.08% in the past year.
- Measured over the past years, SOTK shows a small growth in Revenue. The Revenue has been growing by 5.96% on average per year.
EPS 1Y (TTM)42.86%
EPS 3Y-20.37%
EPS 5Y2.91%
EPS Q2Q%0%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y6.18%
Revenue growth 5Y5.96%
Sales Q2Q%-3.58%
3.2 Future
- SOTK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
- The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y46.63%
EPS Next 2Y26.24%
EPS Next 3Y21.31%
EPS Next 5Y0.4%
Revenue Next Year2.03%
Revenue Next 2Y6.4%
Revenue Next 3Y7.66%
Revenue Next 5Y5.28%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 41.30, SOTK can be considered very expensive at the moment.
- SOTK's Price/Earnings is on the same level as the industry average.
- SOTK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 32.39, which means the current valuation is very expensive for SOTK.
- SOTK's Price/Forward Earnings ratio is in line with the industry average.
- SOTK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.3 | ||
| Fwd PE | 32.39 |
4.2 Price Multiples
- SOTK's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.85 |
4.3 Compensation for Growth
- SOTK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of SOTK may justify a higher PE ratio.
- A more expensive valuation may be justified as SOTK's earnings are expected to grow with 21.31% in the coming years.
PEG (NY)0.89
PEG (5Y)14.19
EPS Next 2Y26.24%
EPS Next 3Y21.31%
5. Dividend
5.1 Amount
- SOTK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SONO-TEK CORP / SOTK FAQ
What is the fundamental rating for SOTK stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOTK.
What is the valuation status for SOTK stock?
ChartMill assigns a valuation rating of 3 / 10 to SONO-TEK CORP (SOTK). This can be considered as Overvalued.
Can you provide the profitability details for SONO-TEK CORP?
SONO-TEK CORP (SOTK) has a profitability rating of 6 / 10.
Can you provide the financial health for SOTK stock?
The financial health rating of SONO-TEK CORP (SOTK) is 8 / 10.
What is the earnings growth outlook for SONO-TEK CORP?
The Earnings per Share (EPS) of SONO-TEK CORP (SOTK) is expected to grow by 46.63% in the next year.