SONO TEK CORP

Tiny, debt-free ultrasonic-coating-systems maker — profitable and cash-generative, but sub-scale with customer concentration.

Strengths

• Profitable, debt-free, strong cash conversion — gross margin 50.5% (88th), FCF margin 14.4% (100th), OCF margin 15.5%
• Strong liquidity — current ratio 3.46 (54th)

Risks

• Micro-cap scale and order lumpiness — FCF only $3.0M; no long-term purchase commitments per risk factors
• Customer/distributor concentration — qualitative (per 10-K)
• Slow growth — revenue +2.0% (24th)

Notable findings

• Customer concentration~33% of revenue from one customer/distributor — In fiscal 2026, approximately 33% of sales originated outside of the United States and Canada
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Notable holderHeld by 4 notable fund(s): RENAISSANCE TECHNOLOGIES LLC, CITADEL ADVISORS LLC, STATE STREET CORP +1 more (as of 2026-03-31)