Sono-Tek Corporation (SOTK) AI Stock Analysis

Sono-Tek Corporation specializes in the design and manufacturing of advanced ultrasonic coating systems used across diverse industries worldwide, including microelectronics/electronics, alternative energy, medical, industrial, and research and development sectors. The company provides both standard and custom-engineered ultrasonic coating systems tailored to apply precise coatings onto various parts and components. Its product portfolio features integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and complementary nozzles and generators. Sono-Tek Corporation distributes its solutions globally through an established network of independent distributors and sales representatives.

Revenue rose from $17.1M in FY2022 to $20.9M in FY2026, representing a 5-year revenue CAGR of 7.1%, despite a 12.1% drop in FY2023. Gross margin remained steady, moving from 50.3% in FY2022 to 50.5% in FY2026. Net income reached $1.8M in FY2026, up from $1.3M in FY2025 and $635,905 in FY2023, while operating margin expanded to 8.7%. Over the trailing twelve months ended August 31, 2026, revenue stood at $21.5M with a profit margin of 9.3%. For the quarter ended August 31, 2026, quarterly revenue rose 1.3% year-over-year, while quarterly earnings fell 25.8%.

As of August 31, 2026, Sono-Tek Corporation held $17.8M in cash and short-term investments, with total assets of $26.4M and shareholders' equity of $21.1M. The company maintained a current ratio of 4.42. In FY2026, operating cash flow was $3.2M and free cash flow reached $3.0M. Cash deployment during FY2026 included $224,558 in capital expenditures and $151,122 in share buybacks, while the share count grew 1.0% over five years.

At a closing share price of $6.16 on October 16, 2026, Sono-Tek trades at a market capitalization of $96.8M and an enterprise value of $59.3M. The company's trailing P/E of 51.3x and EV/EBITDA of 20.6x trade above the median of its US-listed Technology peers at 28.1x and 16.6x, respectively. Its price-to-sales multiple of 4.5x also exceeds the peer median of 2.8x. Over the past year, Sono-Tek generated a return of 46.7%, outperforming the S&P 500's return of 16.8%, but its 5-year return of 4.8% lagged the S&P 500's 83.0%.

Wall Street analyst coverage consists of 1 Strong Buy and 1 Hold rating, with a mean price target of $8.50, representing 38.0% upside compared to the last close of $6.16. For the current fiscal year ending February 28, 2027, consensus estimates project revenue of $21.5M and an EPS of $0.09, reflecting an EPS decline of 21.6%. For the next fiscal year, 2 analysts project revenue of $26.5M and EPS of $0.18, representing annual growth of 23.4% and 100.0%, respectively. Over the last 4 quarters, Sono-Tek has beaten EPS estimates 1 time.

This page is an AI-written research summary of Sono-Tek Corporation (SOTK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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