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Sono-TekSOTK +1.67%87 Gross Margin % is 56.77% as of May. 2026, which is 19% above its 10-year median of 47.87. GuruFocus rates SOTK with a GF Score™ of 87/100 and a GF Value™ of $4.48 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,454 Hardware companies, Sono-Tek ranks better than 88.35% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sono-Tek's Gross Profit for the
three
months ended in May. 2026 was $3.21 Mil. Sono-Tek's Revenue for the
three
months ended in May. 2026 was $5.66 Mil. Therefore, Sono-Tek's Gross Margin % for the quarter that ended in May. 2026 was 56.77%.
The historical rank and industry rank for Sono-Tek's Gross Margin % or its related term are showing as below:
SOTK'
s Gross Margin % Range Over the Past 10 Years
Min: 45.2 Med: 47.87 Max: 51.82
Current: 51.82
During the past 13 years, the highestGross Margin % of Sono-Tek was 51.82%. The lowest was 45.20%. And the median was 47.87%.
SOTK's Gross Margin % is ranked better than 88.35% of 2454
companies
in the Hardware industry
Industry Median: 24.765
vs SOTK: 51.82
Sono-Tek had a gross margin of 56.77% for the quarter that ended in May. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sono-Tek was 0.40% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sono-Tek had a gross margin of 56.77% for the quarter that ended in May. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sono-Tek Gross Margin % Related Terms
Sono-Tek Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sono-Tek's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SOTK vs ARBE, ODYS, GNSS: Gross Margin % Comparison
For the Scientific & Technical Instruments subindustry, Sono-Tek's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sono-Tek Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Sono-Tek's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sono-Tek's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sono-Tek (SOTK) has a Gross Margin % of 56.77% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sono-Tek and its competitors. This is 19% above median its historical median of 47.87. Over the past decade, Sono-Tek's Gross Margin % has ranged from 45.20 to 51.82. According to the industry distribution chart, Sono-Tek ranks #286 out of 2454 companies in the Hardware industry, placing it in the top 11.7%.
Is Sono-Tek's Gross Margin % too high?
Sono-Tek's current Gross Margin % of 56.77% is 19% above median its 10-year median of 47.87. Over the past 10 years, this metric has ranged from a low of 45.20 to a high of 51.82. The Hardware industry median Gross Margin % is 24.77. Sono-Tek's value of 56.77% is 129.2% above this industry median. Based on the distribution chart, Sono-Tek ranks #286 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Sono-Tek has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sono-Tek's Gross Margin % compare to ARBE and ODYS?
According to the Hardware industry distribution chart, Sono-Tek ranks #286 out of 2454 companies for Gross Margin %. This places Sono-Tek in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.77. Sono-Tek's value of 56.77% is 129.2% above this benchmark. Historically, Sono-Tek's own Gross Margin % has ranged from 45.20 to 51.82 over the past decade. While the company's 10-year median is 47.87 vs. the industry median of 24.77, Sono-Tek has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.77, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sono-Tek's current Gross Margin % of 56.77% is 129.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sono-Tek and its competitors. For the Hardware industry, the median Gross Margin % is 24.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sono-Tek's current Gross Margin % is 56.77%, which is 19% above median its own 10-year median of 47.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sono-Tek stock overvalued right now?
Based on GuruFocus' analysis, Sono-Tek (SOTK) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.48, compared to a current price of $5.50 — trading 22.8% above its estimated fair value. The current Gross Margin % is 56.77%, which is 19% above median its 10-year median of 47.87 and 129.2% above the Hardware industry median of 24.77. Sono-Tek's overall GF Score™ is 87/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sono-Tek (SOTK), the current Gross Margin % is 56.77% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sono-Tek (SOTK) Overvalued in 2026?
Based on GuruFocus' analysis, Sono-Tek stock appears to be overvalued.
The current stock price of $5.50 is trading 22.8% above its estimated GF Value™ of $4.48.
GuruFocus considers Sono-Tek to be Modestly Overvalued.
Key valuation signals for SOTK:
Gross Margin %: 56.77% (19% above median its 10-year median of 47.87)
GF Value™: $4.48 vs. price of $5.50 (22.8% above fair value)
Industry Position: 129.2% above the Hardware median (#286 of 2454)
No single metric tells the full story. See the SOTK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sono-Tek Corp designs and manufactures ultrasonic coating systems for applying precise, thin film coatings to add functional properties, protect or strengthen surfaces on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and emerging research & development/other markets. The company designs and manufacture custom-engineered ultrasonic coating systems incorporating its patented technology, in combination with applications engineering knowledge, to assist its customers in achieving their desired coating solutions.
87GF Score
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