📊 SOTK Key Takeaways
Is Sono Tek Corp. (SOTK) a Good Investment?
Sono Tek demonstrates exceptional 200% revenue growth with strong balance sheet fundamentals, minimal debt, and excellent liquidity. However, net income growth of 41.8% significantly trails revenue growth, indicating margin compression that warrants monitoring as the company scales operational efficiency.
Sono Tek Corp. Key Strengths (SOTK)
- Exceptional 200% YoY revenue growth demonstrates strong market demand
- Fortress balance sheet with 0.05x debt-to-equity and $7.3M cash position
- Excellent liquidity metrics (3.46x current ratio, 2.87x quick ratio)
- Positive free cash flow generation of $3.0M with 14.4% FCF margin
- Healthy 50.5% gross margins indicate pricing power and competitive positioning
- Minimal capex requirements ($224.6K) suggest capital-light business model
SOTK Stock Risks: Sono Tek Corp. Investment Risks
- Net income growth (41.8%) significantly lags revenue growth (200.3%), indicating margin compression during scaling
- Operating margin of only 8.7% despite 50.5% gross margins suggests elevated operating expenses
- ROE and ROA are modest (9.1% and 6.8%) relative to growth rate, raising profitability sustainability questions
- Unclear if company can maintain profitability margins as it scales operations
- Limited insider trading activity (2 Form 4 filings in 90 days) provides minimal conviction signals
Key Metrics to Watch
- Operating margin trend—critical to confirm profitability scaling with revenue
- Operating cash flow sustainability—must remain positive and grow with revenue
- Gross margin stability—monitor for pricing pressure or cost inflation
- Working capital efficiency—ensure cash conversion remains strong during growth phase
Sono Tek Corp. (SOTK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.46x current ratio provides a solid financial cushion.
SOTK Profit Margin, ROE & Profitability Analysis
SOTK vs Industrial Sector: How Sono Tek Corp. Compares
How Sono Tek Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sono Tek Corp. Stock Overvalued? SOTK Valuation Analysis 2026
Based on fundamental analysis, Sono Tek Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sono Tek Corp. Balance Sheet: SOTK Debt, Cash & Liquidity
SOTK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sono Tek Corp.'s revenue has declined by 31% over the 5-year period, indicating business contraction. The most recent EPS of $0.08 reflects profitable operations.
SOTK Revenue Growth, EPS Growth & YoY Performance
SOTK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.6M | $274.2K | $0.02 |
| Q2 2026 | $1.7M | $340.7K | $0.02 |
| Q1 2026 | $1.6M | N/A | $0.02 |
| Q3 2025 | $2.3M | $53.4K | $0.02 |
| Q2 2025 | $1.7M | $53.4K | $0.02 |
| Q1 2025 | $1.2M | $53.4K | $0.00 |
| Q3 2024 | $2.0M | $53.4K | $0.01 |
| Q2 2024 | $2.1M | $53.4K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sono Tek Corp. Dividends, Buybacks & Capital Allocation
SOTK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sono Tek Corp. (CIK: 0000806172)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SOTK
What is the AI rating for SOTK?
Sono Tek Corp. (SOTK) has an AI grade of A with 77% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SOTK's key strengths?
Claude: Exceptional 200% YoY revenue growth demonstrates strong market demand. Fortress balance sheet with 0.05x debt-to-equity and $7.3M cash position.
What are the risks of investing in SOTK?
Claude: Net income growth (41.8%) significantly lags revenue growth (200.3%), indicating margin compression during scaling. Operating margin of only 8.7% despite 50.5% gross margins suggests elevated operating expenses.
What is SOTK's revenue and growth?
Sono Tek Corp. reported revenue of $20.9M.
Does SOTK pay dividends?
Sono Tek Corp. does not currently pay dividends.
Where can I find SOTK SEC filings?
Official SEC filings for Sono Tek Corp. (CIK: 0000806172) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SOTK's EPS?
Sono Tek Corp. has a diluted EPS of $0.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SOTK's fundamental grade?
Based on our AI fundamental analysis in May 2026, Sono Tek Corp. has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SOTK stock overvalued or undervalued?
Valuation metrics for SOTK: ROE of 9.1% (sector avg: 15%), net margin of 8.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is SOTK's AI grade for 2026?
Our dual AI analysis gives Sono Tek Corp. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SOTK's free cash flow?
Sono Tek Corp.'s operating cash flow is $3.2M, with capital expenditures of $224.6K. FCF margin is 14.4%.
How does SOTK compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 8.6% (avg: 10%), ROE 9.1% (avg: 15%), current ratio 3.46 (avg: 1.8).