MeritValue

SONO TEK CORP

SOTKdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'pretaxIncome'

The thesis, from the filings

SONO TEK CORP earns about 10% on equity, barely covering its ~9% cost of capital, with a roughly flat share count. The estimate methods put fair value between $0.78 and $0.95 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$11.7M1$8.25M2$8.82M3$8M4$6.96M4
Net income$2.54M5$635,9056$1.44M7$1.27M8$1.81M8
Operating cash flow$2.32M9$1.33M10$1.16M11$525,01912$3.25M12
Capital expenditure$326,94213$555,86714$794,69015$468,79816$224,55816
Free cash flow (derived)$1.99M9$769,17210$369,17611$56,22112$3.02M12
Total debt—————
Cash & equivalents$4.84M17$3.35M18$2.13M19$5.2M20$7.34M20
Diluted shares15.6M15.8M15.8M15.8M15.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$12.57
your share of equity
Profit it earned you last year
$1.15
Free cash flow it threw off
$1.92
Debt you’d be carrying
—

10 shares is a claim on $12.57 of net worth that earned you $1.15 and generated $1.92 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
10% avg · 5y
FY22 19%FY23 4%FY24 9%FY25 7%FY26 9%

It earned about 10% on equity against a ~9% cost of capital — roughly what it costs to fund the business, so the numbers show no clear edge.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $0.78 and $0.95 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$0.78
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$369,176
DCF · Growth Exit 5Y
$0.8
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$369,176
Earnings Power Value
$0.95
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.44M
  • growthAssumed0.0%
Graham Number
$1.76
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $0.8
The three cases
Bear0.0%$0.8
Base0.0%$0.8
Bull5.0%$0.88

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-02-28 · accession 0001171520-23-000181 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2023-02-28 · accession 0001171520-24-000208 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-02-29 · accession 0001171520-25-000195 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2025-02-28 · accession 0001171520-26-000113 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2022-02-28 · accession 0001171520-23-000181 (ProfitLoss)
  6. 10-K · period ending 2023-02-28 · accession 0001171520-24-000208 (ProfitLoss)
  7. 10-K · period ending 2024-02-29 · accession 0001171520-25-000195 (ProfitLoss)
  8. 10-K · period ending 2025-02-28 · accession 0001171520-26-000113 (ProfitLoss)
  9. 10-K · period ending 2022-02-28 · accession 0001171520-23-000181 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-02-28 · accession 0001171520-24-000208 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-02-29 · accession 0001171520-25-000195 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-02-28 · accession 0001171520-26-000113 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-02-28 · accession 0001171520-23-000181 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-02-28 · accession 0001171520-24-000208 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-02-29 · accession 0001171520-25-000195 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-02-28 · accession 0001171520-26-000113 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2022-02-28 · accession 0001171520-23-000181 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-02-28 · accession 0001171520-24-000208 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-02-29 · accession 0001171520-25-000195 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-02-28 · accession 0001171520-26-000113 (CashAndCashEquivalentsAtCarryingValue)