Sono-Tek Corporation (SOTK) Stock

Sono-Tek Corporation (SOTK) is a Industrials stock trading at $4.96 (as of 2026-09-01), with a market capitalization of $78.02M and a trailing P/E of 37.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Sono-Tek Corporation designs and manufactures ultrasonic coating systems, including customized systems, and related components such as nozzles and generators, for use in industries that include microelectronics/electronics, alternative energy, medical, industrial, and research and development. It sells its products through independent distributors and sales representatives.

Understand Sono-Tek Corporation: how it makes money

Sono-Tek designs and manufactures ultrasonic coating systems (spray-nozzle capital equipment) for microelectronics, medical, alternative-energy, and industrial customers, selling integrated and custom-built machines through independent distributors. Revenue is lumpy and OEM-driven, with a small number of large equipment deals driving most quarters rather than a steady recurring stream.

Each sale is a one-off engineering engagement: the company wraps proprietary ultrasonic nozzle and generator technology around a customer-specific system, so gross margin absorbs the design content while revenue arrives in uneven lumps shaped by a handful of capital-equipment orders.

Revenue by segment (latest quarter)
Fluxing	$0.0B
OEM Systems	$0.0B
Multi-Axis Coating	$0.0B
In-Line Coating	$0.0B
Spare Parts & Services	$0.0B

Business quality (Unprofitable): Niche-technology maker with a solid 57% gross margin and positive operating leverage, yet graded Unprofitable overall, meaning below-the-line charges (interest, minority items) still leave shareholders without a reliable bottom line.

Bull case

Niche technical moat shields margins: A gross margin of 57% in a specialized ultrasonic-coating niche, where few competitors offer comparable nozzle and generator engineering, gives Sono-Tek pricing power that broad industrial-machinery peers do not enjoy.
Lean opex converts to operating profit: Operating margin of 16% on a small revenue base shows the cost structure is disciplined; incremental equipment orders should flow through at a high rate because fixed engineering and overhead are already in place.

Bear case

Unprofitable despite positive operations: The company carries an overall Unprofitable quality grade even with a 16% operating margin, suggesting below-the-line items (interest expense, taxes, or other charges) consistently wipe out the operating profit that reaches the bottom line.

Valuation — source: SEC EDGAR (first-party)
Price	$4.96
Market Cap	$78.02M
P/E Ratio	37.8
EV / EBITDA	23.7
Price / Book	3.79
Price / Sales	3.64
FCF Yield	3.9%
DCF Value (model)	$1.74
DCF Upside vs Price	-65.0%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$20.91M
Net Margin	8.6%
Revenue Growth (YoY)	10.3%
EPS Growth (YoY)	66.7%
FCF Growth (YoY)	-290.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	9.30 (safe)

Valuation vs Sector & Industry
Stock P/E	37.8
Sector P/E (Industrials)	25.7
Industry P/E (Machinery)	31.6
vs Sector	47.1%
vs Industry	19.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($1.78M)
Institutional Holders Tracked	10

Company
Sector	Industrials
Industry	Machinery
CEO	R. Stephen Harshbarger
Employees	82
Country	US
IPO Date	1999-04-26

Related Companies (Machinery; 8 comparable machinery makers)

Data as of 2026-09-01.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.