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Sonoma Pharmaceuticals

SNOA
18
Drug Manufacturers - Specialty & Generic · Healthcare
Price
$1.21
-0.01 (-0.82%)
Market Cap
$2.0M
Exchange
NASDAQ Capital Market
Winston Score
18
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+534.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 265K (2022) → 1.7M (2026)

Sonoma Pharmaceuticals is a small healthcare company that makes skin and wound care products. Its core technology is a stabilized hypochlorous acid solution, sold under the Microcyn brand, which is used to clean and treat wounds, skin infections, and eye conditions. The company sells to hospitals, clinics, and consumers, and also licenses its technology to other companies that sell products under their own brand names.

Sonoma makes money through product sales and licensing agreements. It operates in the United States, Europe, Latin America, and Asia, though it remains a very small company with a market cap under $100 million. Its proprietary formulation technology gives it some differentiation, but the wound care market is crowded with larger, better-funded competitors. The company is currently unprofitable, and its main challenge is scaling revenue fast enough to cover operating costs — making consistent profitability the key hurdle investors are watching.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+48.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+47.6% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$2M/ year

Rising (+25% vs prior year)

11.6% of revenue

Below sector average (18%)

Investing heavily in future products and technology

Insider Activity

0.6%ownership

Relatively low insider ownership

Cash Runway

~13 months

$2M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Revenue accelerating

Sonoma Pharmaceuticals grew revenue 48% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
39.2%
Modest — 39.2% gross margin
Operating Margin
-6.3%
Losing money on operations — -6.3%
ROCE
-10.6%
Weak — -10.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+32.0%
Fast-growing sales (32.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-4.9%
Burning cash (-4.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.07
Conservative — low debt load (0.07)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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