Is SONO TEK CORP (SOTK) Halal?

NASDAQ Technology United States $64M
✓ HALAL
Confidence: 83/100
SONO TEK CORP (SOTK) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.0% against the AAOIFI threshold of 30%, SONO TEK CORP comfortably passes the key financial ratio tests. The company operates in the Technology sector (Scientific & Technical Instruments), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from February 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.0%
/ 30%
19.2%
/ 30%
3.8%
/ 30%
2.38%
/ 5%
✓ HALAL
DJIM 0.0%
/ 33%
19.2%
/ 33%
3.8%
/ 33%
2.38%
/ 5%
✓ HALAL
MSCI 0.0%
/ 33%
51.0%
/ 33%
10.0%
/ 33%
2.38%
/ 5%
✗ NOT HALAL
S&P 0.0%
/ 33%
19.2%
/ 33%
3.8%
/ 33%
2.38%
/ 5%
✓ HALAL
FTSE 0.0%
/ 33%
51.0%
/ 33%
10.0%
/ 50%
2.38%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
41.0
Forward: 34.2
EPS
$0.10
P/B Ratio
3.4
EV/EBITDA
24.0
EV: $53M
Revenue
$21M
Growth: -3.6%
Beta
-0.3
Low volatility
Current Ratio
4.2

Profitability

Gross Margin 49.9%
Operating Margin 6.4%
Net Margin 7.7%
Return on Equity (ROE) 8.6%
Return on Assets (ROA) 3.9%

Cash Flow & Balance Sheet

Operating Cash Flow$525,019
Free Cash Flow$56,221
Current Ratio4.2
Total Assets$23M

Price & Trading

Last Close$4.04
50-Day MA$4.13
200-Day MA$3.96
Avg Volume29K
Beta-0.3
52-Week Range
$3.23
$5.15

About SONO TEK CORP (SOTK)

CEO
Mr. R. Stephen Harshbarger
Employees
79
Sector
Technology
Industry
Scientific & Technical Instruments
Country
United States
Exchange
NASDAQ
Market Cap
$64M
Currency
USD

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. The company offers custom-engineered ultrasonic coating systems; and nozzles and generators. It also provides integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. In addition, the company offers surface coating solutions and application consulting services. It markets and distributes its products through direct sales personnel, select independent distributors, and sales representatives. The company operates in the United States, Canada, the Asia Pacific, Europe, the Middle East, Asia, and Latin America. Sono-Tek Corporation was incorporated in 1975 and is headquartered in Milton, New York.

Purification Calculator

As a halal stock with 2.38% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Technology

Frequently Asked Questions

Is SONO TEK CORP (SOTK) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SONO TEK CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is SONO TEK CORP's debt ratio?

SONO TEK CORP's debt ratio is 0.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.0%.

Does SONO TEK CORP require dividend purification?

Yes, SONO TEK CORP has an impermissible income ratio of 2.38%, which means 2.38% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are SONO TEK CORP's key financial metrics?

SONO TEK CORP has a market capitalization of $64M, trailing P/E ratio of 41.0, and revenue of $21M. The company maintains a gross margin of 49.9% and a net margin of 7.7%. Return on equity stands at 8.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.