📊 SOTK Key Takeaways
Is Sono Tek Corp. (SOTK) a Good Investment?
SOTK demonstrates exceptional operational fundamentals with 200%+ YoY revenue growth, healthy margins (56.8% gross, 13.1% net), and a fortress balance sheet featuring 4.4x current ratio with minimal debt. Strong 32.8% FCF margin and profitable operations support the aggressive top-line expansion, though the gap between revenue growth (+200%) and net income growth (+42%) suggests execution risks during scaling.
Sono-Tek combines exceptional revenue growth with strong gross and operating margins, while positive free cash flow indicates that reported earnings are backed by cash generation. Its substantial net-cash position and high liquidity provide resilience, although the unusually sharp growth rate and modest returns on equity and assets warrant confirmation across future periods.
Sono Tek Corp. Key Strengths (SOTK)
- Exceptional revenue growth of 200%+ YoY demonstrates strong market demand
- Fortress balance sheet with 4.37x current ratio, 0.05x debt/equity, and $9M cash against minimal $1M long-term debt
- High free cash flow margin (32.8%) and robust operating cash conversion indicate efficient operations
- Healthy gross margin of 56.8% provides pricing power and profitability buffer
- Low capital intensity ($81.5K CapEx) generates strong free cash flow relative to operating cash flow
- Revenue increased 200.3% year over year while net income grew 41.8%
- Strong profitability with a 56.8% gross margin and 15.8% operating margin
- Excellent financial health, including $8.98M of cash, minimal debt, and a 4.37x current ratio
SOTK Stock Risks: Sono Tek Corp. Investment Risks
- Sustainability of 200%+ revenue growth uncertain for small-cap company with $5.7M annual revenue
- Profitability growth (41.8%) lagging revenue growth suggests potential margin compression or cost inflation during scaling phase
- Low absolute ROE (3.6%) and ROA (2.9%) indicate capital deployment challenges despite strong cash position
- Minimal absolute earnings ($741.2K net income) limits margin for operational missteps or market downturns
- Small company size creates vulnerability to customer concentration and market cyclicality risks
- Net income growth materially lagged revenue growth, suggesting weaker incremental profitability or an unusual comparison period
- ROE of 3.6% and ROA of 2.9% indicate modest returns on the company's capital base
- Small operating scale may create customer concentration, order timing, and earnings volatility risks
Key Metrics to Watch
- Quarterly revenue growth rate trajectory and gross margin sustainability
- Operating margin expansion as revenue scales (currently 15.8%)
- Free cash flow generation consistency and reinvestment patterns
- Customer concentration metrics and contract pipeline health
- Operating expense ratio control during continued growth phase
- Organic revenue growth and operating margin
- Operating cash flow conversion relative to net income
Sono Tek Corp. (SOTK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 32.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.37x 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 |
|---|---|---|---|
| Q1 2027 | $1.6M | $485.0K | $0.03 |
| 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 |
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 a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SOTK's key strengths?
Claude: Exceptional revenue growth of 200%+ YoY demonstrates strong market demand. Fortress balance sheet with 4.37x current ratio, 0.05x debt/equity, and $9M cash against minimal $1M long-term debt. ChatGPT: Revenue increased 200.3% year over year while net income grew 41.8%. Strong profitability with a 56.8% gross margin and 15.8% operating margin.
What are the risks of investing in SOTK?
Claude: Sustainability of 200%+ revenue growth uncertain for small-cap company with $5.7M annual revenue. Profitability growth (41.8%) lagging revenue growth suggests potential margin compression or cost inflation during scaling phase. ChatGPT: Net income growth materially lagged revenue growth, suggesting weaker incremental profitability or an unusual comparison period. ROE of 3.6% and ROA of 2.9% indicate modest returns on the company's capital base.
What is SOTK's revenue and growth?
Sono Tek Corp. reported revenue of $5.7M.
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 $0.05.
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 August 2026, Sono Tek Corp. has a A grade with 78% 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 3.6% (sector avg: 15%), net margin of 13.1% (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 above sector average. Always conduct your own research.
What is SOTK's free cash flow?
Sono Tek Corp.'s operating cash flow is $1.9M, with capital expenditures of $81.5K. FCF margin is 32.8%.
How does SOTK compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 13.1% (avg: 10%), ROE 3.6% (avg: 15%), current ratio 4.37 (avg: 1.8).