SmartKem (SMTK) AI Stock Analysis

• Market Cap: $7.09M
• Dividend Yield: N/A
• Average Volume (3M): 3.32M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.19
• Revenue Growth: 125.58%
• EPS Growth: -0.65%
• Country: US
• Employees: 27
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.30
• Shares Outstanding: 4,544,490
• 10 Day Avg. Volume: 207,772
• 30 Day Avg. Volume: 3,318,164
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 79.01
• Enterprise Value/Gross Profit: 165.88
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: $1.50
• Price Target Upside: -3.85% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-3.85% Downside)

SmartKem's overall stock score is primarily impacted by its poor financial performance, characterized by ongoing losses and cash flow issues. Technical analysis provides mixed signals, with some bullish momentum but also overbought conditions. Valuation concerns are significant due to a negative P/E ratio and lack of dividend yield. Corporate events have a neutral impact, with both negative and positive developments.

SmartKem Business Overview & Revenue Model

Company Description

SmartKem, Inc. engages in the development of materials and processes for organic thin-film transistors backplanes for the manufacture of flexible electronics. Its transistor stacks are used in various applications, including bendable smart-phone displays, curved automotive displays, e-paper displays, wearables, fingerprint sensors, and printed biosensors. SmartKem, Inc. was founded in 2009 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

SmartKem generates revenue through the commercialization of its proprietary organic semiconductor technology, offering licensing agreements and partnerships with manufacturers and developers of flexible display and electronics technologies. The company's key revenue streams include technology licensing fees, collaboration agreements, and joint development projects with leading display and electronics manufacturers. These partnerships not only provide direct revenue but also facilitate the integration of SmartKem's technology into a wide range of commercial products, driving adoption and increasing market penetration. Additionally, SmartKem may engage in research and development collaborations which could further contribute to its earnings by advancing its technological offerings and enhancing its competitive positioning within the industry.

SmartKem Financial Statement Overview

Summary

SmartKem is experiencing financial difficulties, marked by ongoing losses and cash flow challenges. While there is some revenue growth and manageable debt levels, persistent net losses and negative cash flows indicate the company is struggling to achieve profitability. The reliance on financing activities for cash flow support raises concerns about sustainable operations in the semiconductor industry.

Income Statement

SmartKem shows a trend of volatile and negative net income over recent years, with a significant net loss of -$10.33M in 2024. Revenue growth is inconsistent, with a notable increase from $27K in 2023 to $82K in 2024, but gross profit margins are low, indicating cost challenges. EBIT and EBITDA margins are negative, further highlighting profitability issues.

Balance Sheet

The company's balance sheet reflects a low debt-to-equity ratio due to minimal total debt and a positive stockholders' equity of $6.59M in 2024. However, the equity ratio is weakened by decreasing total assets over the years. The company maintains a strong cash position, with cash and short-term investments covering liabilities, but overall financial stability is compromised by historical losses.

Cash Flow

SmartKem's cash flow situation is concerning, with negative free cash flow reported at -$8.17M in 2024. Operating cash flow is also negative, indicating cash generation issues, while significant financing activities suggest reliance on external funding. The lack of free cash flow growth underscores ongoing cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.00K	82.00K	27.00K	40.00K	18.00K	94.00K
Gross Profit	46.20K	50.00K	4.00K	7.00K	10.00K	39.00K
EBITDA	-11.34M	-9.86M	-9.50M	-9.50M	-15.81M	-5.61M
Net Income	-10.07M	-10.33M	-8.50M	-11.49M	-17.14M	-24.50M
Balance Sheet
Total Assets	4.28M	8.90M	11.27M	7.53M	15.06M	8.44K
Cash, Cash Equivalents and Short-Term Investments	1.15M	7.14M	8.84M	4.24M	12.23M	8.44K
Total Debt	664.00K	72.00K	249.00K	445.00K	115.00K	20.00K
Total Liabilities	4.41M	2.31M	3.16M	1.64M	1.54M	29.00K
Stockholders Equity	-127.00K	6.59M	8.11M	5.88M	13.52M	-20.56K
Cash Flow
Free Cash Flow	-9.89M	-8.17M	-8.05M	-9.13M	-10.88M	-4.20M
Operating Cash Flow	-9.81M	-8.10M	-8.04M	-9.05M	-10.54M	-4.08M
Investing Cash Flow	-75.00K	-75.00K	-18.00K	-79.00K	-341.00K	-118.00K
Financing Cash Flow	6.53M	6.53M	12.69M	1.83M	22.20M	4.59M

SmartKem Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMTK, the sentiment is Neutral. The current price of 1.56 is below the 20-day moving average (MA) of 1.61, above the 50-day MA of 1.14, and below the 200-day MA of 2.01, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 62.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMTK.

SmartKem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRT	65 Neutral	$24.63M	-404.96	―	―	-13.80%	-103.83%
PXLW	55 Neutral	$51.27M	-1.73	271.75%	―	-44.05%	-2.33%
PRSO	51 Neutral	$7.54M	-0.69	―	―	1.80%	89.30%
LEDS	45 Neutral	$17.90M	-31.55	-12.42%	―	485.62%	85.02%
GCTS	44 Neutral	$84.91M	-2.28	20.87%	―	28.31%	-239.16%
SMTK	40 Underperform	$7.09M	―	-451.42%	―	125.58%	-0.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SmartKem Corporate Events

SmartKem Approves Equity Awards and Amends CEO Contract

On September 3, 2025, SmartKem‘s Compensation Committee approved equity compensation awards for its executives and board members, granting options to purchase shares of common stock under the 2021 Equity Incentive Plan. Additionally, CEO Ian Jenks’s employment agreement was amended to increase his cash severance entitlement. As of September 5, 2025, the company reported having 5,479,787 shares of common stock issued and outstanding.

SmartKem Explores Strategic Alternatives for Growth

On August 28, 2025, SmartKem announced its intention to explore strategic alternatives to enhance stockholder value, although no specific timeline or assurance of a transaction was provided. During this review, the company will continue its operations and focus on commercializing its patented technology, aiming to unlock long-term potential and accelerate towards market readiness.

SmartKem Faces Nasdaq Non-Compliance Notification

On August 15, 2025, SmartKem, Inc. received a notification from Nasdaq indicating non-compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The company’s stockholders’ deficit was reported at ($127,000), below the required $2.5 million, and it did not meet alternative compliance standards. This notification does not immediately affect the listing of SmartKem’s common stock, which remains traded on Nasdaq. The company has until September 29, 2025, to submit a compliance plan, with the possibility of an extension until February 11, 2026, if accepted by Nasdaq.

SmartKem Announces Joint Development with Manz Asia

On July 9, 2025, SmartKem announced a preliminary joint development agreement with Manz Asia to co-develop next-generation dielectric ink solutions for advanced AI chip packaging. This collaboration aims to address bottlenecks in chip packaging by combining SmartKem’s semiconductor materials with Manz’s inkjet technology, potentially leading to scalable, high-performance solutions that reduce costs and improve efficiency for data centers using AI accelerators.

SmartKem Extends Agreement with CPI Innovation Services

On June 19, 2025, SmartKem Limited extended its framework services agreement with CPI Innovation Services Limited to December 31, 2025. The extension includes a waiver of minimum usage obligations and a cost-sharing arrangement for equipment relocation, impacting SmartKem’s operational flexibility and collaboration with CPIIS.