Sono Tek Corp (SOTK) stock analysis

SOTKNasdaqSpecial Industry Machinery, NECFiscal year ends February 28

Financials through Q2 FY2027, quarter ended Aug 31, 2026Last filing: 10-Q on Oct 14, 2026Score 13/3021% below fair value

$4.22−0.11 (-2.54%)

Close on Nov 13, 2026Market cap $66.47MP/E –Yield –

StockData Score

Prices as of Nov 13, 2026How the score works

Mixed13 of 30 checks passed

Sono Tek passes 13 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 3/6
Growth: 3/6
Past performance: 1/6
Financial health: 6/6
Dividend: 0/6

What stands out

Margin of safety over 20%
The price is 20.8% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $4.22 is below our fair value estimate of $5.33.
Return on capital over 10%
Return on invested capital was 30.4%, above the 10% that usually covers the cost of capital.
No debt
Sono Tek has no borrowings on its latest balance sheet.

What to watch

P/B above the industry
Sono Tek's price-to-book of 3.16 is above the Special Industry Machinery, except Metalworking median of 2.04.
Growing slower than the industry
Revenue grew 4.4% over the last twelve months; the Special Industry Machinery, except Metalworking median is 5.7%.
No dividend
Sono Tek has not paid a dividend in the last twelve months.

Valuation3/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA below its 5-year median
Sono Tek's EV/EBITDA of 17.4 is below its 5-year median of 32.8.
P/B above the industry
Sono Tek's price-to-book of 3.16 is above the Special Industry Machinery, except Metalworking median of 2.04.
Trading below fair value
The share price of $4.22 is below our fair value estimate of $5.33.
Margin of safety over 20%
The price is 20.8% below fair value, more than the 20% cushion we look for.

Growth3/6

Revenue growing 10%+ a year
Revenue grew 11.6% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 40.1% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 4.4% over the last twelve months; the Special Industry Machinery, except Metalworking median is 5.7%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 52.5% over the last twelve months, against 48.6% a year earlier.

Past performance1/6

Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 30.4%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.

Financial health6/6

No debt
Sono Tek has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 4.42 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 9.95; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Sono Tek has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$5.33

The share price is 21% below this estimate.

20%+ below

Near fair value

20%+ above

$4.22Price$5.33Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
EV/EBITDA	25.2×	32.8×	17.6×	$5.61	78%
P/B	3.3×	4.5×	2.0×	$4.35	22%
Earnings powerleft out, too far from the others	7.6% cost of equity	–	–	$1.01	–
Fair value				$5.33	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

EV/EBITDA at month end
Own 5-year median 32.8
Special Industry Machinery, except Metalworking median 17.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day: $775.64K
Value traded per 1% price move: $101.23K

Downside

High risk

Typical loss in a bad month: 33.1%
Volatility (annualized): 59%
Sharpe ratio, 1 year: -0.16
Beta to the S&P 500 (5Y): 0.48

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

50.5%+3.3 pts over 5 years

Operating margin

8.7%−0.3 pts over 5 years

Growth rates

Compound annual growth to fiscal 2026

Per year	1 year	3 years	5 years	10 years
Revenue	+2.0%	+11.6%	+7.1%	+5.9%
Gross profit	+8.4%	+11.3%	+8.6%	+6.5%
Operating income	+80.7%	+38.8%	+6.4%	+9.4%
EPS, diluted	+37.5%	+40.1%	+9.5%	+10.6%
Free cash flow	+5273.5%	+57.8%	+51.3%	+33.9%

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2017	FY2021	FY2026
Current ratio	5.19	3.09	3.46
Debt to equity	0.15	0.09	–
Net debt to EBITDA	-5.28×	-1.71×	–
Interest coverage	-3.4×	33.6×	–
Inventory turnover	3.2×	3.1×	2.5×
Capex to revenue	1.9%	2.3%	1.1%
Diluted shares	15M	16M	16M