SONO-TEK CORP (SOTK)
US8354831088 - Common Stock
SOTK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, SOTK could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year SOTK was profitable.
SOTK had a negative operating cash flow in the past year.
SOTK had positive earnings in each of the past 5 years.
SOTK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.63%, SOTK belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
SOTK's Return On Equity of 8.91% is fine compared to the rest of the industry. SOTK outperforms 73.39% of its industry peers.
SOTK's Return On Invested Capital of 5.81% is fine compared to the rest of the industry. SOTK outperforms 66.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOTK is below the industry average of 9.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 8.91% | ||
| ROIC | 5.81% |
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
The Profit Margin of SOTK (7.35%) is better than 77.42% of its industry peers.
SOTK's Profit Margin has improved in the last couple of years.
SOTK has a Operating Margin of 5.97%. This is in the better half of the industry: SOTK outperforms 69.35% of its industry peers.
In the last couple of years the Operating Margin of SOTK has grown nicely.
SOTK's Gross Margin of 49.57% is amongst the best of the industry. SOTK outperforms 84.68% of its industry peers.
SOTK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.97% | ||
| PM (TTM) | 7.35% | ||
| GM | 49.57% |
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.
SOTK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SOTK has been increased compared to 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 9.24 indicates that SOTK is not in any danger for bankruptcy at the moment.
SOTK has a Altman-Z score of 9.24. This is amongst the best in the industry. SOTK outperforms 87.90% of its industry peers.
SOTK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.24 |
ROIC/WACC0.61
WACC9.57%
2.3 Liquidity
SOTK has a Current Ratio of 3.33. This indicates that SOTK is financially healthy and has no problem in meeting its short term obligations.
SOTK has a Current ratio of 3.33. This is in the better half of the industry: SOTK outperforms 64.52% of its industry peers.
A Quick Ratio of 2.46 indicates that SOTK has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.46, SOTK is doing good in the industry, outperforming 62.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.46 |
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.
The Earnings Per Share has been growing by 55.66% on average over the past years. This is a very strong growth
The Revenue has grown by 25.23% in the past year. This is a very strong growth!
Measured over the past years, SOTK shows a quite strong growth in Revenue. The Revenue has been growing by 11.15% on average per year.
EPS 1Y (TTM)125%
EPS 3Y4.55%
EPS 5Y55.66%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)25.23%
Revenue growth 3Y9.93%
Revenue growth 5Y11.15%
Sales Q2Q%-8.46%
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.
The Revenue is expected to grow by 7.84% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 47.00, the valuation of SOTK can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SOTK.
The average S&P500 Price/Earnings ratio is at 30.69. SOTK is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 43.65, SOTK can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as SOTK.
When comparing the Price/Forward Earnings ratio of SOTK to the average of the S&P500 Index (22.55), we can say SOTK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47 | ||
| Fwd PE | 43.65 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.39 |
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)5.61
PEG (5Y)0.84
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 (10/30/2024, 8:00:02 PM)
4.23
-0.15 (-3.5%)
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 Cap66.62M
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)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue 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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47 | ||
| Fwd PE | 43.65 | ||
| 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)5.61
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 8.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.97% | ||
| PM (TTM) | 7.35% | ||
| GM | 49.57% | ||
| 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 | 3.33 | ||
| Quick Ratio | 2.46 | ||
| 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)25.23%
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