SONO-TEK CORP (SOTK) Stock Fundamental Analysis
NASDAQ:SOTK - Nasdaq - US8354831088 - Common Stock - Currency: USD
SOTK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. SOTK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SOTK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SOTK was profitable.
SOTK had a positive operating cash flow in the past year.
In the past 5 years SOTK has always been profitable.
In the past 5 years SOTK always reported a positive cash flow from operatings.
1.2 Ratios
SOTK has a Return On Assets of 4.53%. This is in the better half of the industry: SOTK outperforms 72.80% of its industry peers.
Looking at the Return On Equity, with a value of 6.33%, SOTK is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
SOTK has a Return On Invested Capital (3.28%) which is comparable to the rest of the industry.
SOTK had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 6.33% | ||
| ROIC | 3.28% |
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
SOTK has a better Profit Margin (5.47%) than 73.60% of its industry peers.
SOTK's Profit Margin has improved in the last couple of years.
SOTK has a Operating Margin (3.52%) which is comparable to the rest of the industry.
SOTK's Operating Margin has improved in the last couple of years.
SOTK has a better Gross Margin (47.91%) than 83.20% of its industry peers.
SOTK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 5.47% | ||
| GM | 47.91% |
OM growth 3Y-12.74%
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOTK is destroying value.
SOTK has about the same amout of shares outstanding than it did 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
SOTK has an Altman-Z score of 7.54. This indicates that SOTK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SOTK (7.54) is better than 86.40% 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 | 0 | ||
| Altman-Z | 7.54 |
ROIC/WACC0.37
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.99 indicates that SOTK has no problem at all paying its short term obligations.
SOTK's Current ratio of 2.99 is fine compared to the rest of the industry. SOTK outperforms 68.00% of its industry peers.
SOTK has a Quick Ratio of 2.28. This indicates that SOTK is financially healthy and has no problem in meeting its short term obligations.
SOTK's Quick ratio of 2.28 is fine compared to the rest of the industry. SOTK outperforms 67.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
SOTK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
Measured over the past years, SOTK shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.66% on average per year.
The Revenue has grown by 8.40% in the past year. This is quite good.
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)0%
EPS 3Y4.55%
EPS 5Y55.66%
EPS Q2Q%-50%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y9.93%
Revenue growth 5Y11.15%
Sales Q2Q%-8.79%
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 7.00% on average per year.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y-4.38%
EPS Next 2Y10.06%
EPS Next 3Y-3.72%
EPS Next 5Y7%
Revenue Next Year4.08%
Revenue Next 2Y6.64%
Revenue Next 3Y5.79%
Revenue Next 5Y6.08%
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
With a Price/Earnings ratio of 58.14, SOTK can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SOTK.
SOTK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 42.00, SOTK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOTK is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.20. SOTK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.14 | ||
| Fwd PE | 42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOTK.
SOTK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1287.2 | ||
| EV/EBITDA | 33.28 |
4.3 Compensation for Growth
The decent profitability rating of SOTK 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)N/A
PEG (5Y)1.04
EPS Next 2Y10.06%
EPS Next 3Y-3.72%
5. Dividend
5.1 Amount
No dividends for SOTK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SOTK (4/30/2025, 8:00:02 PM)
4.07
+0.09 (+2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners46.58%
Inst Owner Change0%
Ins Owners21.61%
Ins Owner Change-1.12%
Market Cap64.10M
Analysts82.5
Price Target8.41 (106.63%)
Short Float %0.05%
Short Ratio1.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.96%
Min EPS beat(2)-1.96%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)47.06%
Min EPS beat(4)-1.96%
Max EPS beat(4)96.08%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-2.97%
Max Revenue beat(4)2.47%
Revenue beat(8)2
Avg Revenue beat(8)-1.73%
Revenue beat(12)4
Avg Revenue beat(12)-1.71%
Revenue beat(16)6
Avg Revenue beat(16)-1.14%
PT rev (1m)0%
PT rev (3m)-10.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.14 | ||
| Fwd PE | 42 | ||
| P/S | 3.18 | ||
| P/FCF | 1287.2 | ||
| P/OCF | 69.61 | ||
| P/B | 3.68 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 33.28 |
EPS(TTM)0.07
EY1.72%
EPS(NY)0.1
Fwd EY2.38%
FCF(TTM)0
FCFY0.08%
OCF(TTM)0.06
OCFY1.44%
SpS1.28
BVpS1.1
TBVpS1.1
PEG (NY)N/A
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 6.33% | ||
| ROCE | 4% | ||
| ROIC | 3.28% | ||
| ROICexc | 11.53% | ||
| ROICexgc | 11.62% | ||
| OM | 3.52% | ||
| PM (TTM) | 5.47% | ||
| GM | 47.91% | ||
| FCFM | 0.25% |
ROA(3y)7.94%
ROA(5y)7.63%
ROE(3y)10.57%
ROE(5y)10.66%
ROIC(3y)6.9%
ROIC(5y)7.68%
ROICexc(3y)28.61%
ROICexc(5y)30.23%
ROICexgc(3y)29.2%
ROICexgc(5y)31.05%
ROCE(3y)8.43%
ROCE(5y)9.39%
ROICexcg growth 3Y-13.28%
ROICexcg growth 5Y66.79%
ROICexc growth 3Y-12.74%
ROICexc growth 5Y67.43%
OM growth 3Y-12.74%
OM growth 5Y54.18%
PM growth 3Y-1.05%
PM growth 5Y39.64%
GM growth 3Y1.92%
GM growth 5Y2.02%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 124.81% | ||
| Cap/Sales | 4.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.42% | ||
| Profit Quality | 4.52% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 7.54 |
F-Score5
WACC8.83%
ROIC/WACC0.37
Cap/Depr(3y)105.96%
Cap/Depr(5y)113.48%
Cap/Sales(3y)3.23%
Cap/Sales(5y)3.33%
Profit Quality(3y)74.76%
Profit Quality(5y)97.4%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y4.55%
EPS 5Y55.66%
EPS Q2Q%-50%
EPS Next Y-4.38%
EPS Next 2Y10.06%
EPS Next 3Y-3.72%
EPS Next 5Y7%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y9.93%
Revenue growth 5Y11.15%
Sales Q2Q%-8.79%
Revenue Next Year4.08%
Revenue Next 2Y6.64%
Revenue Next 3Y5.79%
Revenue Next 5Y6.08%
EBIT growth 1Y-41.86%
EBIT growth 3Y-4.08%
EBIT growth 5Y71.37%
EBIT Next Year17.76%
EBIT Next 3Y9.62%
EBIT Next 5YN/A
FCF growth 1Y-95.21%
FCF growth 3Y-1.81%
FCF growth 5YN/A
OCF growth 1Y-38.61%
OCF growth 3Y16.82%
OCF growth 5YN/A