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SONO-TEK CORP (SOTK) Stock Fundamental Analysis

USA - NASDAQ:SOTK - US8354831088 - Common Stock

4.49 USD
+0.03 (+0.6%)
Last: 10/2/2025, 8:00:02 PM
Fundamental Rating

5

Overall SOTK gets a fundamental rating of 5 out of 10. We evaluated SOTK against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While SOTK has a great health rating, its profitability is only average at the moment. SOTK is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

SOTK had positive earnings in the past year.
In the past year SOTK has reported a negative cash flow from operations.
Each year in the past 5 years SOTK has been profitable.
Each year in the past 5 years SOTK had a positive operating cash flow.
SOTK Yearly Net Income VS EBIT VS OCF VS FCFSOTK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1M 2M 3M

1.2 Ratios

The Return On Assets of SOTK (6.10%) is better than 80.65% of its industry peers.
SOTK has a Return On Equity of 7.81%. This is in the better half of the industry: SOTK outperforms 66.94% of its industry peers.
With a decent Return On Invested Capital value of 5.65%, SOTK is doing good in the industry, outperforming 62.90% of the companies in the same industry.
SOTK had an Average Return On Invested Capital over the past 3 years of 4.81%. This is below the industry average of 9.50%.
The last Return On Invested Capital (5.65%) for SOTK is above the 3 year average (4.81%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.1%
ROE 7.81%
ROIC 5.65%
ROA(3y)4.95%
ROA(5y)7.21%
ROE(3y)6.8%
ROE(5y)9.82%
ROIC(3y)4.81%
ROIC(5y)6.95%
SOTK Yearly ROA, ROE, ROICSOTK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

SOTK has a better Profit Margin (6.93%) than 74.19% of its industry peers.
SOTK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.09%, SOTK is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
SOTK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 48.28%, SOTK belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
In the last couple of years the Gross Margin of SOTK has remained more or less at the same level.
Industry RankSector Rank
OM 6.09%
PM (TTM) 6.93%
GM 48.28%
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%
SOTK Yearly Profit, Operating, Gross MarginsSOTK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOTK is destroying value.
The number of shares outstanding for SOTK remains at a similar level compared to 1 year ago.
SOTK has more shares outstanding than it did 5 years ago.
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.
SOTK Yearly Shares OutstandingSOTK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M
SOTK Yearly Total Debt VS Total AssetsSOTK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M

2.2 Solvency

SOTK has an Altman-Z score of 10.44. This indicates that SOTK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.44, SOTK belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 10.44
ROIC/WACC0.6
WACC9.48%
SOTK Yearly LT Debt VS Equity VS FCFSOTK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M 10M 15M

2.3 Liquidity

SOTK has a Current Ratio of 3.77. This indicates that SOTK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SOTK (3.77) is better than 73.39% of its industry peers.
SOTK has a Quick Ratio of 2.83. This indicates that SOTK is financially healthy and has no problem in meeting its short term obligations.
SOTK has a Quick ratio of 2.83. This is in the better half of the industry: SOTK outperforms 70.97% of its industry peers.
Industry RankSector Rank
Current Ratio 3.77
Quick Ratio 2.83
SOTK Yearly Current Assets VS Current LiabilitesSOTK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M

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2

3. Growth

3.1 Past

SOTK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -10.00%.
Measured over the past 5 years, SOTK shows a small growth in Earnings Per Share. The EPS has been growing by 2.91% on average per year.
Looking at the last year, SOTK shows a decrease in Revenue. The Revenue has decreased by -2.47% in the last 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)-10%
EPS 3Y-20.37%
EPS 5Y2.91%
EPS Q2Q%50%
Revenue 1Y (TTM)-2.47%
Revenue growth 3Y6.18%
Revenue growth 5Y5.96%
Sales Q2Q%2.02%

3.2 Future

SOTK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.61% yearly.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y8.38%
EPS Next 2Y7.12%
EPS Next 3Y-3.72%
EPS Next 5Y-8.61%
Revenue Next Year-1.36%
Revenue Next 2Y3.67%
Revenue Next 3Y4.97%
Revenue Next 5Y4.21%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SOTK Yearly Revenue VS EstimatesSOTK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5M 10M 15M 20M 25M
SOTK Yearly EPS VS EstimatesSOTK Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.05 0.1 0.15

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 49.89 indicates a quite expensive valuation of SOTK.
SOTK's Price/Earnings ratio is in line with the industry average.
SOTK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
SOTK is valuated quite expensively with a Price/Forward Earnings ratio of 48.91.
SOTK's Price/Forward Earnings is on the same level as the industry average.
SOTK is valuated expensively when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 49.89
Fwd PE 48.91
SOTK Price Earnings VS Forward Price EarningsSOTK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOTK is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 27.35
SOTK Per share dataSOTK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 0.4 0.6 0.8 1

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SOTK has a very decent profitability rating, which may justify a higher PE ratio.
SOTK's earnings are expected to decrease with -3.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)5.96
PEG (5Y)17.14
EPS Next 2Y7.12%
EPS Next 3Y-3.72%

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0

5. Dividend

5.1 Amount

SOTK does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SONO-TEK CORP

NASDAQ:SOTK (10/2/2025, 8:00:02 PM)

4.49

+0.03 (+0.6%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)07-10 2025-07-10/bmo
Earnings (Next)10-21 2025-10-21
Inst Owners42.1%
Inst Owner Change2.98%
Ins Owners16.02%
Ins Owner Change-0.33%
Market Cap70.63M
Analysts80
Price Target7.91 (76.17%)
Short Float %0.09%
Short Ratio0.71
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.89%
Min EPS beat(2)30.72%
Max EPS beat(2)47.06%
EPS beat(4)2
Avg EPS beat(4)18.46%
Min EPS beat(4)-1.96%
Max EPS beat(4)47.06%
EPS beat(8)5
Avg EPS beat(8)35.21%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)-0.4%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)-2.07%
Revenue beat(16)6
Avg Revenue beat(16)-1.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)70%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.01%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)2.05%
Valuation
Industry RankSector Rank
PE 49.89
Fwd PE 48.91
P/S 3.43
P/FCF N/A
P/OCF N/A
P/B 3.87
P/tB 3.87
EV/EBITDA 27.35
EPS(TTM)0.09
EY2%
EPS(NY)0.09
Fwd EY2.04%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS1.31
BVpS1.16
TBVpS1.16
PEG (NY)5.96
PEG (5Y)17.14
Profitability
Industry RankSector Rank
ROA 6.1%
ROE 7.81%
ROCE 6.82%
ROIC 5.65%
ROICexc 13.78%
ROICexgc 13.85%
OM 6.09%
PM (TTM) 6.93%
GM 48.28%
FCFM N/A
ROA(3y)4.95%
ROA(5y)7.21%
ROE(3y)6.8%
ROE(5y)9.82%
ROIC(3y)4.81%
ROIC(5y)6.95%
ROICexc(3y)17.39%
ROICexc(5y)26.49%
ROICexgc(3y)17.6%
ROICexgc(5y)27.05%
ROCE(3y)5.81%
ROCE(5y)8.39%
ROICexcg growth 3Y-34.47%
ROICexcg growth 5Y-17.14%
ROICexc growth 3Y-34.05%
ROICexc growth 5Y-16.55%
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%
F-Score3
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 70.16%
Cap/Sales 2.37%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.77
Quick Ratio 2.83
Altman-Z 10.44
F-Score3
WACC9.48%
ROIC/WACC0.6
Cap/Depr(3y)103.27%
Cap/Depr(5y)91.74%
Cap/Sales(3y)3.35%
Cap/Sales(5y)2.85%
Profit Quality(3y)50.11%
Profit Quality(5y)52.7%
High Growth Momentum
Growth
EPS 1Y (TTM)-10%
EPS 3Y-20.37%
EPS 5Y2.91%
EPS Q2Q%50%
EPS Next Y8.38%
EPS Next 2Y7.12%
EPS Next 3Y-3.72%
EPS Next 5Y-8.61%
Revenue 1Y (TTM)-2.47%
Revenue growth 3Y6.18%
Revenue growth 5Y5.96%
Sales Q2Q%2.02%
Revenue Next Year-1.36%
Revenue Next 2Y3.67%
Revenue Next 3Y4.97%
Revenue Next 5Y4.21%
EBIT growth 1Y-17.24%
EBIT growth 3Y-18.71%
EBIT growth 5Y-2.05%
EBIT Next Year111.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-213.39%
FCF growth 3Y-69.55%
FCF growth 5Y-53.3%
OCF growth 1Y-141.93%
OCF growth 3Y-39.06%
OCF growth 5Y-30.55%