📊 SOTK Key Takeaways
Is Sono Tek Corp. (SOTK) a Good Investment?
Sono Tek demonstrates exceptional 156% revenue growth and maintains a fortress balance sheet with minimal leverage and excellent liquidity. However, a critical cash flow problem—negative free cash flow of -$71.2K despite $1.2M net income—reveals poor earnings quality and raises sustainability concerns. Weak returns on capital (6.5% ROE, 5.2% ROA) suggest the company is deploying growth capital inefficiently.
Why Buy Sono Tek Corp. Stock? SOTK Key Strengths
- Exceptional revenue growth of 156% YoY demonstrates strong market demand
- Healthy gross margins of 50.8% indicate pricing power and operational efficiency
- Fortress balance sheet: minimal debt (0.05x D/E), $5.4M cash, and exceptional liquidity (4.24x current ratio)
SOTK Stock Risks: Sono Tek Corp. Investment Risks
- Negative free cash flow (-$71.2K) despite profitability signals poor cash conversion and potential unsustainable growth model
- Massive earnings quality gap: $1.2M net income but only $109.7K operating cash flow suggests non-cash charges or working capital deterioration
- Weak returns on invested capital (6.5% ROE, 5.2% ROA) indicate inefficient deployment of growth capital, especially concerning for a small-cap company
Key Metrics to Watch
- Operating cash flow trend and path to positive free cash flow generation
- Working capital management and accounts receivable/payable cycles
- Return on equity and ROA expansion as company scales
Sono Tek Corp. (SOTK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.24x 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 19% over the 5-year period, indicating business contraction. The most recent EPS of $0.09 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 rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SOTK's key strengths?
Claude: Exceptional revenue growth of 156% YoY demonstrates strong market demand. Healthy gross margins of 50.8% indicate pricing power and operational efficiency.
What are the risks of investing in SOTK?
Claude: Negative free cash flow (-$71.2K) despite profitability signals poor cash conversion and potential unsustainable growth model. Massive earnings quality gap: $1.2M net income but only $109.7K operating cash flow suggests non-cash charges or working capital deterioration.
What is SOTK's revenue and growth?
Sono Tek Corp. reported revenue of $15.3M.
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 $0.08.
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 rating reflects both perspectives for balanced insights.
Is SOTK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sono Tek Corp. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SOTK stock overvalued or undervalued?
Valuation metrics for SOTK: ROE of 6.5% (sector avg: 15%), net margin of 8.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy SOTK stock in 2026?
Our dual AI analysis gives Sono Tek Corp. a combined HOLD rating 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 $109.7K, with capital expenditures of $180.8K. FCF margin is -0.5%.
How does SOTK compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 8.2% (avg: 10%), ROE 6.5% (avg: 15%), current ratio 4.24 (avg: 1.8).