SONO-TEK CORP (SOTK)
US8354831088 - Common Stock
We assign a fundamental rating of 6 out of 10 to SOTK. SOTK was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. SOTK scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SOTK is quite expensive at the moment. It does show a decent growth rate. This makes SOTK very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SOTK was profitable.
In the past year SOTK had a positive 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.
1.2 Ratios
The Return On Assets of SOTK (7.29%) is better than 84.00% of its industry peers.
SOTK's Return On Equity of 10.31% is fine compared to the rest of the industry. SOTK outperforms 77.60% of its industry peers.
With a decent Return On Invested Capital value of 7.36%, SOTK is doing good in the industry, outperforming 72.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOTK is below the industry average of 9.20%.
The last Return On Invested Capital (7.36%) for SOTK is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 10.31% | ||
| ROIC | 7.36% |
ROA(3y)7.94%
ROA(5y)7.63%
ROE(3y)10.57%
ROE(5y)10.66%
ROIC(3y)6.9%
ROIC(5y)7.68%
1.3 Margins
Looking at the Profit Margin, with a value of 8.13%, SOTK is in the better half of the industry, outperforming 78.40% of the companies in the same industry.
In the last couple of years the Profit Margin of SOTK has grown nicely.
SOTK's Operating Margin of 7.18% is fine compared to the rest of the industry. SOTK outperforms 72.80% of its industry peers.
SOTK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.80%, SOTK belongs to the top of the industry, outperforming 84.80% of the companies in the same industry.
SOTK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.18% | ||
| PM (TTM) | 8.13% | ||
| GM | 49.8% |
OM growth 3Y-12.75%
OM growth 5Y54.18%
PM growth 3Y-1.05%
PM growth 5Y39.64%
GM growth 3Y1.92%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
SOTK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
An Altman-Z score of 8.27 indicates that SOTK is not in any danger for bankruptcy at the moment.
SOTK has a better Altman-Z score (8.27) than 88.80% 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 | 8.27 |
ROIC/WACC0.78
WACC9.49%
2.3 Liquidity
A Current Ratio of 2.87 indicates that SOTK has no problem at all paying its short term obligations.
SOTK has a Current ratio of 2.87. This is comparable to the rest of the industry: SOTK outperforms 59.20% of its industry peers.
SOTK has a Quick Ratio of 2.05. This indicates that SOTK is financially healthy and has no problem in meeting its short term obligations.
SOTK has a Quick ratio of 2.05. This is comparable to the rest of the industry: SOTK outperforms 58.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
SOTK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 125.00%, which is quite impressive.
SOTK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.66% yearly.
SOTK shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.81%.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
EPS 1Y (TTM)125%
EPS 3Y4.55%
EPS 5Y55.66%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)30.81%
Revenue growth 3Y9.93%
Revenue growth 5Y11.15%
Sales Q2Q%-8.5%
3.2 Future
Based on estimates for the next years, SOTK will show a small growth in Earnings Per Share. The EPS will grow by 4.98% on average per year.
Based on estimates for the next years, SOTK will show a small growth in Revenue. The Revenue will grow by 7.84% on average per year.
EPS Next Y8.38%
EPS Next 2Y10.06%
EPS Next 3Y-3.72%
EPS Next 5Y4.98%
Revenue Next Year6.81%
Revenue Next 2Y8.08%
Revenue Next 3Y6.43%
Revenue Next 5Y7.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 47.78, the valuation of SOTK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SOTK is on the same level as its industry peers.
SOTK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 31.46.
The Price/Forward Earnings ratio is 44.38, which means the current valuation is very expensive for SOTK.
SOTK's Price/Forward Earnings ratio is in line with the industry average.
SOTK is valuated expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.78 | ||
| Fwd PE | 44.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOTK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SOTK may justify a higher PE ratio.
A cheap valuation may be justified as SOTK's earnings are expected to decrease with -3.72% in the coming years.
PEG (NY)5.7
PEG (5Y)0.86
EPS Next 2Y10.06%
EPS Next 3Y-3.72%
5. Dividend
5.1 Amount
SOTK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SONO-TEK CORP
NASDAQ:SOTK (10/22/2024, 2:55:30 PM)
4.3
-0.17 (-3.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.72M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.78 | ||
| Fwd PE | 44.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.7
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 10.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.18% | ||
| PM (TTM) | 8.13% | ||
| GM | 49.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)125%
EPS 3Y4.55%
EPS 5Y
EPS Q2Q%
EPS Next Y8.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.81%
Revenue growth 3Y9.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y