XVARY Composite Score
42
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Sono-Tek sells ultrasonic machines that spray ultra-thin coatings onto medical, energy, and electronics products.
How it gets paid
Last year Sono-Tek made $21M in revenue. medical device coating systems was the main engine at $5.0M, or 24% of sales.
Why it's growing
Revenue grew 4.1% last year. The from a year ago comparison was loud: revenue rose 206% and EPS rose 300%.
What just happened
Latest quarter revenue hit $15 million, with EPS at $0.08 and gross margin at 50.8%.
At a Glance
C++ balance sheet — some cracks in the foundation
45/100 earnings predictability — expect surprises
40.3x trailing p/e — you're paying up for this one
7.2% return on capital — nothing to write home about
$0.08 fy2024 eps est
XVARY composite: 42/100 — below average
What They Do
Sono-Tek sells ultrasonic machines that spray ultra-thin coatings onto medical, energy, and electronics products.
Sono-Tek wins by getting built into your production line, not added as a nice-to-have tool. Once your process is tuned around its ultrasonic coating systems, swapping vendors means reworking yield, speed, and quality checks across the line. A 79-employee company just landed a medical-device order worth over $2.8 million, or about 13% of its $21 million annual revenue.
How They Make Money
$21M
annual revenue · their business grew +4.1% last year
medical device coating systems
$5.0M
alternative energy systems
$4.8M
microelectronics systems
$4.3M
advanced industrial manufacturing
$4.1M
research, development, and consulting
$2.8M
The Products That Matter
Precision thin-film application
Ultrasonic Coating Systems
$5.0M quarterly revenue base
This is the core platform. It carried the company to $5.0M in Q3 FY2026 revenue. In human-speak: there is no hidden second act yet.
core platform
Automated production line equipment
Integrated Coating Platforms
$820K recent order
A recent $820K medical device order equals roughly 4% of annual revenue. For most public companies that is a line item. Here it is an operating event.
order-driven
End-market mix
Medical, Electronics, and Clean Energy
40% / 30% / 30%
The mix is broader than many microcaps. Electronics still fell 2% last year. That is the quiet part: diversification helps the story, but it has not removed demand swings.
mixed demand
Key Numbers
40.3x
trailing p/e
Jargon → price-to-earnings → how much you pay for each dollar of profit → so what: you are paying a premium for a very small business.
$21M
annual revenue
This is a real business, but still a tiny one. A few orders can change the year.
8.3%
operating margin
Jargon → operating margin → profit left after running the business → so what: Sono-Tek is profitable, but not by a huge amount.
7.2%
return on capital
Jargon → return on capital → profit generated from money invested in the business → so what: this is decent, not elite.
Financial Health
C++
Strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
C++ — below average. watch for debt servicing and cash burn.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
beat estimates
Latest quarter revenue hit $15 million, with EPS at $0.08 and gross margin at 50.8%.
The from a year ago comparison was loud: revenue rose 206% and EPS rose 300%, based on the SEC figures you have here. Quiet part out loud: on a $66 million market cap, one strong quarter changes the whole mood.
$15M
revenue
$0.08
eps
50.8%
gross margin
the number that mattered
The number that mattered was $15 million in quarterly revenue, because that is roughly 71% of the company's full $21 million annual revenue base.
source: company earnings report, 2026
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What Could Go Wrong
The central risk is simple: Sono-Tek is too small for order slippage to stay local. When one $820K deal equals roughly 4% of annual revenue and the latest quarter only produced $5.0M, you do not need a crisis to get a bad print. You just need timing to turn against you.
Med
Customer concentration and uneven orders
A single $820K medical device order equals about 4% of annual revenue. This is a project business. If one customer delays spending, the income statement feels it right away.
Impact: one delayed or lost order can swing a quarter from stable to ugly.
Med
Thin profitability and a C++ balance sheet
The company stayed profitable with a 7.7% net margin last quarter, but that is not a thick buffer. Add a C++ balance sheet grade and you get a setup with limited room for operational mistakes.
Impact: a few soft quarters would pressure both sentiment and flexibility.
Med
Electronics and clean-energy softness
Electronics & Semiconductors fell 2% last year, and management commentary pointed to slower clean-energy demand. Those two buckets represent 60% of revenue combined.
Impact: if both stay soft, medical has to carry too much of the growth burden.
Med
Execution load is high for a $66M company
Sono-Tek disclosed 39 risk factors. That does not mean disaster is imminent. It does mean a very small public company has a lot of ways to get knocked off pace.
Impact: small operating misses become public-company problems fast.
Put together, the risks all point to the same thing: the company is real, but the margin for error is small because the revenue base is small.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Earnings
The next quarterly revenue print
After a 3.6% decline to $5.0M, you want to see a return to growth, not another quarter proving the lumpiness is structural.
Margin
Net margin holding near 7.7%
The catch is that profitability is positive but thin. If margin compresses while revenue stays soft, the equity story gets harder in a hurry.
Orders
Another meaningful order after the $820K win
You are looking for repetition. One large order helps the quarter. A second one starts to look like demand.
End markets
Whether medical keeps offsetting weaker electronics and clean energy
Those two slower buckets make up 60% of revenue combined. If they stay soft, the balanced mix stops feeling balanced.
Analyst Rankings
earnings predictability
45 / 100
in human-speak, analysts do not treat this as a smooth earnings story. The company sells useful equipment, but the revenue cadence still arrives in bursts.
balance sheet grade
C++
That grade says the balance sheet is workable, not comforting. Fine if orders keep landing. Less fine if they pause.
Source: institutional data
Institutional Activity
institutional ownership data for SOTK is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$4
Current price
Target midpoint · from current
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