Sono-Tek Corporation Fundamental Analysis
Sono-Tek Corporation (SOTK) shows weak financial fundamentals with a PE ratio of 40.27, profit margin of 9.62%, and ROE of 10.54%. The company generates $0.0B in annual revenue with moderate year-over-year growth of 4.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SOTK's fundamental strength across five key dimensions:
Efficiency Score
WeakSOTK struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOTK shows balanced valuation metrics.
Growth Score
WeakSOTK faces weak or negative growth trends.
Financial Health Score
ExcellentSOTK maintains a strong and stable balance sheet.
Profitability Score
WeakSOTK struggles to sustain strong margins.
Key Financial Metrics
Is SOTK Expensive or Cheap?
P/E Ratio
SOTK trades at 40.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOTK's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values Sono-Tek Corporation at 4.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.38 times EBITDA. This signals the market has high growth expectations.
How Well Does SOTK Make Money?
Net Profit Margin
For every $100 in sales, Sono-Tek Corporation keeps $9.62 as profit after all expenses.
Operating Margin
Core operations generate 10.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.54 in profit for every $100 of shareholder equity.
ROA
Sono-Tek Corporation generates $7.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sono-Tek Corporation generates strong operating cash flow of $6.11M, reflecting robust business health.
Free Cash Flow
Sono-Tek Corporation generates strong free cash flow of $5.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.37 in free cash annually.
FCF Yield
SOTK converts 6.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SOTK Stacks Against Its Sector Peers
| Metric | SOTK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.27 | 29.80 | Worse (Expensive) |
| ROE | 10.54% | 1162.00% | Weak |
| Net Margin | 9.62% | -20864.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.37 | Strong (Low Leverage) |
| Current Ratio | 4.37 | 24.29 | Strong Liquidity |
| ROA | 7.97% | -1316017.00% (disorted) | Weak |
SOTK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sono-Tek Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.74%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
11.71%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-84.33%
Industry Style: Cyclical, Value, Infrastructure
Declining