OTCPK:SOTK

Stock Analysis Report

Executive Summary

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Sono-Tek's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOTK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

SOTK

-7.1%

US Electronic

-7.4%

US Market


1 Year Return

-5.4%

SOTK

-0.05%

US Electronic

10.5%

US Market

Return vs Industry: SOTK underperformed the US Electronic industry which returned -0% over the past year.

Return vs Market: SOTK underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

SOTKIndustryMarket
7 Day1.3%-7.1%-7.4%
30 Day-4.6%-8.4%-3.6%
90 Day-7.6%-7.5%-0.6%
1 Year-5.4%-5.4%0.9%-0.05%12.8%10.5%
3 Year93.3%93.3%26.1%22.6%37.4%28.6%
5 Year101.8%101.8%56.5%48.8%61.3%43.6%

Price Volatility Vs. Market

How volatile is Sono-Tek's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sono-Tek undervalued compared to its fair value and its price relative to the market?

73.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOTK ($2.3) is trading above our estimate of fair value ($0.04)

Significantly Below Fair Value: SOTK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOTK is poor value based on its PE Ratio (73.1x) compared to the Electronic industry average (18.3x).

PE vs Market: SOTK is poor value based on its PE Ratio (73.1x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: SOTK is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SOTK is overvalued based on its PB Ratio (3.9x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is Sono-Tek forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOTK's forecast earnings growth (34.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SOTK's earnings (34.5% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOTK's revenue (14.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SOTK's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SOTK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sono-Tek performed over the past 5 years?

-22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOTK has high quality earnings.

Growing Profit Margin: SOTK's current net profit margins (3.8%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: SOTK's earnings have declined by -22.1% per year over the past 5 years.

Accelerating Growth: SOTK's earnings growth over the past year (135.4%) exceeds its 5-year average (-22.1% per year).

Earnings vs Industry: SOTK earnings growth over the past year (135.4%) exceeded the Electronic industry 12%.


Return on Equity

High ROE: SOTK's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sono-Tek's financial position?


Financial Position Analysis

Short Term Liabilities: SOTK's short term assets ($10.5M) exceed its short term liabilities ($3.8M).

Long Term Liabilities: SOTK's short term assets ($10.5M) exceed its long term liabilities ($951.8K).


Debt to Equity History and Analysis

Debt Level: SOTK's debt to equity ratio (8.2%) is considered satisfactory.

Reducing Debt: SOTK's debt to equity ratio has reduced from 22.1% to 8.2% over the past 5 years.

Debt Coverage: SOTK's debt is well covered by operating cash flow (110.3%).

Interest Coverage: SOTK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SOTK has a high level of physical assets or inventory.

Debt Coverage by Assets: SOTK's debt is covered by short term assets (assets are 14.1x debt).


Next Steps

Dividend

What is Sono-Tek's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SOTK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SOTK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOTK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOTK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOTK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.1yrs

Average management tenure


CEO

Christopher Coccio (78yo)

18.8yrs

Tenure

US$171,960

Compensation

Dr. Christopher L. Coccio has been the Chairman of Sono-Tek Corp. since August 2007 and Chief Executive Officer since April 30, 2001. Dr. Coccio served as the President of Sono-Tek Corp., since April 30, 2 ...


CEO Compensation Analysis

Compensation vs Market: Christopher's total compensation ($USD171.96K) is below average for companies of similar size in the US market ($USD524.26K).

Compensation vs Earnings: Christopher's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Coccio
CEO & Chairman18.8yrsUS$171.96k2.27% $801.0k
R. Harshbarger
President & Director6.5yrsUS$252.89k1.48% $522.9k
Stephen Bagley
Chief Financial Officer14.7yrsUS$175.02k0.23% $82.8k
Maria Kuha
Director of Operations0yrsno datano data
Bennett Bruntil
Vice President of Sales & Marketing1.9yrsno data0.049% $17.2k
Claudine Corda
Corporate Secretary0yrsno datano data

11.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SOTK's management team is seasoned and experienced (11.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Coccio
CEO & Chairman18.8yrsUS$171.96k2.27% $801.0k
R. Harshbarger
President & Director6.5yrsUS$252.89k1.48% $522.9k
Eric Haskell
Independent Director10.5yrsUS$5.00kno data
Samuel Schwartz
Chairman Emeritus12.5yrsUS$5.00k8.59% $3.0m
Joseph Riemer
Director12.5yrsUS$5.00k0.63% $222.1k
Donald Mowbray
Independent Director16.5yrsUS$5.00k0.39% $136.1k
Philip Strasburg
Independent Director15.5yrsUS$5.00k0.40% $140.8k
Carol O'Donnell
Independent Director1.3yrsUS$4.05kno data

12.5yrs

Average Tenure

75yo

Average Age

Experienced Board: SOTK's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sono-Tek Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sono-Tek Corporation
  • Ticker: SOTK
  • Exchange: OTCPK
  • Founded: 1975
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$35.245m
  • Shares outstanding: 15.32m
  • Website: https://www.sono-tek.com

Number of Employees


Location

  • Sono-Tek Corporation
  • 2012 Route 9W
  • Milton
  • New York
  • 12547
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOTKOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 1987

Biography

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. The company also designs and manufactures custom-engineered ultrasonic coating systems; and provides patented nozzles and generators for manufacturers’ equipment. Its products include integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. The company markets and distributes its products through independent distributors and sales representatives. The company was founded in 1975 and is headquartered in Milton, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:41
End of Day Share Price2020/02/24 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.