Sono-Tek Corporation Common Stock (SOTK)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses I can understand, bought at a sensible price. Sono-Tek sells specialized ultrasonic coating systems, mostly to microelectronics, medical, alternative energy, and industrial customers. It is small—79 employees—and its results are lumpy. In fiscal 2026, the year ended 2026-02-28, revenue was $7.0M, down from $8.0M in fiscal 2025 and $8.8M in fiscal 2024; yet net income rose to $1.8M from $1.3M and $1.4M. That profit improvement is encouraging, but it came on a shrinking sales base, so quality is not proven. More recently, fiscal Q1 2027, ended 2026-05-31, had revenue of $2.1M and net income of $741,168, while fiscal Q2 2027, ended 2026-08-31, had revenue of $1.6M and net income of $366,294—a sequential slowdown and a decline from fiscal Q2 2026's $2.4M revenue and $423,693 net income. Financial health looks decent: FairStock's Piotroski F-Score is 7/9, Altman Z-Score is 14.50, TTM free cash flow is $5.9M, and FCF yield is 5.2%. But returns are modest—ROE 10.60%, ROCE 5.68%. Valuation is the rub. At the 2026-10-13 close of $7.12, FairStock shows P/E 54.77, P/B 5.44, EV/EBITDA 35.91, and PEG 1.04. FairStock's Graham Number is $1.96, leaving a margin of safety of -263.27%. A Lynch STALWART label—10% five-year profit growth, revenue -6.4%—fits a steady but not bustling enterprise. I would want a wider discount before calling the price attractive.

In plain English: Sono-Tek makes special ultrasonic coating machines for electronics, medical, and industrial customers. The business is small, sales have slipped over the past few years, and profits have been uneven, though yearly profit rose in fiscal 2026. At $7.12, the stock looks expensive compared with its profits, assets, and cash generation, and it pays no dividend.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-31) · fiscal Q1 2027 10-Q (period ended 2026-05-31) · fiscal Q3 2026 10-Q (period ended 2025-11-30) · fiscal Q2 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-02-28) · FY2025 10-K (period ended 2025-02-28) · FY2024 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer