Sono-Tek Corporation
- Open
- 5.23
- Day high
- 5.23
- Day low
- 5.02
- Prev close
- 5.13
- Volume
- 19K
- Mkt cap
- $82M
- P/E (TTM)
- 38.9
- EPS (TTM)
- $0.13
- P/B
- 4.0
- P/S
- 3.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$116K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
Sono-Tek Corporation (SOTK) is a Technology company listed on NASDAQ. The stock is up 56% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Sono-Tek Corporation (SOTK) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SOTK earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 8, 2026 | $0.05 | $0.05 | +0.0% | $6M | +1.1% |
| May 28, 2026 | $0.02 | $0.03 | +50.0% | $6M | +0.3% |
| Jan 13, 2026 | $0.03 | $0.02 | -33.3% | $5M | -10.7% |
| Oct 14, 2025 | $0.02 | $0.03 | +50.0% | $5M | +3.4% |
| Jul 10, 2025 | $0.02 | $0.03 | +50.0% | $5M | -2.2% |
| May 28, 2025 | $0.01 | $0.02 | +100.0% | $5M | -0.1% |
| Jan 13, 2025 | $0.02 | $0.02 | +0.0% | $5M | +1.3% |
| Oct 15, 2024 | $0.02 | $0.02 | +0.0% | $5M | -0.9% |
| Jul 11, 2024 | $0.01 | $0.02 | +100.0% | $5M | +4.6% |
| May 23, 2024 | $0.01 | $0.01 | +100.0% | $5M | -0.0% |
| Jan 16, 2024 | $0.03 | $0.04 | +60.0% | $6M | +21.8% |
| Oct 12, 2023 | $0.05 | $0.03 | -40.0% | $6M | +9.5% |
SOTK insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 29, 2026 | Bagley Stephen Jamesofficer: CFO | Sell | 1,200 | $5.08 |
| Jul 27, 2026 | Bagley Stephen Jamesofficer: CFO | Sell | 3,454 | $5.43 |
| Jul 23, 2026 | COCCIO CHRISTOPHER Ldirector | Sell | 17,000 | $5.38 |
| May 4, 2026 | Booth Brian Lewisofficer: Vice President | Option | 1,650 | $4.45 |
| May 4, 2026 | Booth Brian Lewisofficer: Vice President | Option | 3,299 | $5.48 |
| May 4, 2026 | Booth Brian Lewisofficer: Vice President | Option | 0 | $4.12 |
| May 4, 2026 | Booth Brian Lewisofficer: Vice President | Option | 2,606 | $4.12 |
| Mar 24, 2026 | Lawal Adeniyidirector | Buy | 2,400 | $4.12 |
| Oct 24, 2025 | COCCIO CHRISTOPHER Ldirector | Sell | 12,320 | $4.78 |
| Oct 23, 2025 | COCCIO CHRISTOPHER Ldirector | Sell | 2,097 | $4.66 |
| Oct 23, 2025 | COCCIO CHRISTOPHER Ldirector | Sell | 2,015 | $4.65 |
| Oct 23, 2025 | COCCIO CHRISTOPHER Ldirector | Sell | 100 | $4.67 |
| Aug 25, 2025 | RIEMER JOSEPHdirector | Grant | 7,018 | $3.25 |
| Aug 25, 2025 | HASKELL ERICdirector | Grant | 7,018 | $3.25 |
| Aug 25, 2025 | HARSHBARGER R STEPHENofficer: CEO | Grant | 29,268 | $3.25 |
Source: SOTK SEC Form 4 filings, latest Jul 29, 2026. For informational purposes only — not investment advice.
See the full SOTK insider & 13F page →Sono-Tek Corporation company profile
Overview
Sono-Tek Corporation (NASDAQ:SOTK) is a specialized manufacturing company founded in 1975 and incorporated in Milton, New York. The company designs and manufactures ultrasonic coating systems used across various high-tech industries including microelectronics, alternative energy, medical devices, and industrial applications. Since going public in 1999, Sono-Tek has evolved from primarily serving research and development customers to focusing on large-scale production systems, positioning itself as a niche player in the precision coating equipment market.
Business
Sono-Tek operates in the specialized ultrasonic coating equipment industry, which represents a niche segment within the broader industrial equipment manufacturing sector. The company's core technology revolves around ultrasonic coating systems that use high-frequency sound waves to create extremely precise, uniform thin-film coatings on various substrates and components. Ultrasonic coating technology works by using ultrasonic vibrations to atomize liquid materials into fine droplets, which are then deposited onto target surfaces with exceptional precision and uniformity. This process is particularly valuable for applications requiring extremely thin, consistent coatings that traditional spray methods cannot achieve. The technology enables manufacturers to apply coatings as thin as a few nanometers while maintaining excellent control over thickness, coverage, and material usage. The company serves four primary market segments with distinct applications: 1. Alternative Energy Market (approximately 50% of revenue): Sono-Tek's systems coat components for solar cells, fuel cells, and green hydrogen production equipment. In solar applications, the coatings enhance light absorption and electrical conductivity. For fuel cells, the systems apply catalyst layers and protective coatings that are critical for efficient energy conversion. 2. Electronics and Microelectronics Market (approximately 35% of revenue): The company provides coating solutions for semiconductor manufacturing, printed circuit boards, and electronic components. These coatings serve various functions including insulation, conductivity enhancement, and protection against environmental factors. 3. Medical Market (approximately 10% of revenue): Sono-Tek's systems apply biocompatible coatings to medical devices such as stents, catheters, and drug delivery systems. These coatings can include drug-eluting substances, anti-bacterial agents, or biocompatible materials that improve device performance and patient outcomes. 4. Industrial Market (approximately 5% of revenue): This segment includes various industrial applications such as textiles, glass treatment, and specialty manufacturing processes where precise coating application is required. The company's product portfolio includes integrated multi-axis coating systems, custom-engineered production systems, fluxing systems for electronics manufacturing, OEM systems for equipment manufacturers, and replacement components such as ultrasonic nozzles and generators.
Revenue model
Sono-Tek generates revenue primarily through the sale of specialized coating equipment and related services. The company's business model has evolved significantly over the past decade, shifting from selling smaller research and development systems to focusing on large, complex production systems with substantially higher average selling prices. The company's revenue streams include: 1. Equipment Sales: This represents the majority of revenue, with systems ranging from $150,000 for basic configurations to over $1 million for complex, multi-axis production systems. The company has successfully increased its average selling price from approximately $150,000 historically to $600,000-$1 million for current large-scale systems. 2. Service and Support: Sono-Tek provides ongoing technical support, maintenance services, and application engineering expertise. The company is developing this into a more substantial recurring revenue stream, with service contracts potentially generating 10% annually of a machine's purchase price. 3. Replacement Parts and Components: The company sells ultrasonic nozzles, generators, and other consumable components both for its own systems and as OEM components for other manufacturers' equipment. 4. Custom Engineering Services: Sono-Tek provides specialized application engineering and system customization services, often working closely with customers to develop coating solutions for specific applications. The company's customers are primarily manufacturers in high-tech industries, including multinational corporations in the clean energy sector, semiconductor manufacturers, medical device companies, and industrial manufacturers. Payment terms typically involve deposits upon order confirmation, with final payment upon delivery and acceptance. Several factors influence Sono-Tek's margins and profitability. Positive margin drivers include the company's shift toward larger, more complex systems that command premium pricing, its specialized application engineering expertise that justifies higher margins, and the growing adoption of ultrasonic coating technology in emerging markets like clean energy. The company benefits from relatively limited direct competition in complex, customized systems. However, margin pressures can arise from supply chain disruptions affecting component costs, competition from lower-cost Chinese manufacturers in simpler applications, economic downturns affecting capital equipment purchases, and the need for continuous R&D investment to maintain technological leadership.
Competitive moat
Sono-Tek's competitive moat is moderately strong but narrow, built primarily on specialized technical expertise and application knowledge rather than traditional barriers like patents or network effects. The company's primary moat stems from its deep application engineering expertise accumulated over nearly five decades of working with ultrasonic coating technology across diverse industries. The company's strongest competitive advantages include its ability to design and manufacture highly customized, complex coating systems that are difficult for competitors to replicate. This expertise is particularly valuable in emerging applications like advanced solar cells, fuel cells, and medical device coatings where customers require extensive technical support and system customization. Sono-Tek has built strong relationships with customers by guiding them through the entire process from research and development to full-scale production, creating switching costs and repeat business opportunities. The company also benefits from being a relatively large player in a small, specialized market. The total ultrasonic coating equipment market is estimated at approximately $40 million globally, and Sono-Tek's focus on the most complex, high-value segment provides some protection from broader competitive pressures. However, the moat faces several vulnerabilities. The company acknowledges that Chinese competitors have grown significantly and offer lower-cost alternatives for simpler applications. While Sono-Tek differentiates through complexity and customization, technological advances could potentially commoditize some aspects of ultrasonic coating systems over time. The company's small size also limits its ability to invest heavily in R&D compared to larger industrial equipment manufacturers who might enter the market. Additionally, the specialized nature of the business creates concentration risk, as the company depends on a relatively small number of large customers and market segments. Economic downturns or technological shifts in key end markets like solar energy or semiconductors could significantly impact demand. The company's moat is best described as a specialized niche position with moderate barriers to entry, providing reasonable protection in its current markets but requiring continuous innovation and customer relationship management to maintain competitive advantages.
Risks & safety
Sono-Tek demonstrates a strong financial position with minimal solvency risk, though valuation metrics suggest limited margin of safety at current prices. • Liquidity and Solvency: The company maintains excellent financial health with $8.1 million in cash and short-term investments, zero debt, and a current ratio of 3.0. Free cash flow has been positive in recent quarters at $1.1 million, indicating healthy cash generation. • Valuation Metrics: Current valuation appears stretched with a P/E ratio of 68x, EV/EBITDA of 43x, and price-to-book ratio of 4.3x. These metrics suggest the stock is pricing in significant growth expectations that may be difficult to achieve. • Graham Metrics: Graham number of 0.66 and Graham net-net of 0.62 indicate the stock is trading well above conservative valuation benchmarks, suggesting limited downside protection. • Other Considerations: The company's small size ($58 million market cap) creates liquidity risk and volatility. Revenue concentration in cyclical markets like clean energy and electronics adds earnings volatility risk. However, the strong balance sheet and growing backlog ($11.7 million) provide some operational stability.
Recent development
Over the past few years, Sono-Tek has undergone a significant strategic transformation, shifting from primarily serving research and development customers with smaller systems to focusing on large-scale production equipment for high-growth technology markets. This pivot has been driven by the maturation of key end markets, particularly in clean energy and advanced electronics, where customers are transitioning from R&D to full commercial production. The company has made substantial investments in expanding its engineering capabilities and manufacturing capacity, increasing headcount by approximately 15% and investing heavily in R&D programs. Key development projects include the ARIES and Altair systems, which represent next-generation coating platforms designed for high-volume production applications. The company has also expanded its vertical integration capabilities to reduce supply chain dependencies and improve margins. A major milestone was securing the largest customer order in company history worth $2.95 million from a multinational clean energy company, representing three advanced production systems for solar cell manufacturing. This order exemplifies the company's successful transition to higher-value, complex systems and validates its strategy of targeting emerging clean energy applications. Sono-Tek has also focused on geographic expansion and market diversification. The company has increased its presence in the U.S. and Canadian markets, which now represent 65% of sales compared to 45% previously, while maintaining strong international operations. The development of roll-to-roll coating technology represents another significant advancement, enabling continuous processing for high-volume applications. The company has strengthened its recurring revenue model by expanding service offerings and developing long-term customer relationships that span from initial R&D systems to multiple production systems. Management expects this approach to generate more predictable revenue streams and higher customer lifetime value. Recent quarters have shown the success of this strategy, with record backlogs and a pipeline of large, complex systems scheduled for delivery.
SOTK company profile · for informational purposes only — not investment advice.
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