SmartKem (SMTK) AI Stock Analysis

• Market Cap: $10.77M
• Dividend Yield: N/A
• Average Volume (3M): 345.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.35
• 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: 406,804
• 30 Day Avg. Volume: 345,225
• 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: 0.71
• Enterprise Value/Revenue: 79.01
• Enterprise Value/Gross Profit: 165.88
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-31.82% 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 (SMTK) is a technology company specializing in advanced organic semiconductor materials, primarily for use in the manufacture of flexible and printed electronic devices. Operating in the sectors of electronics and materials science, SmartKem focuses on enabling the development of next-generation displays and sensors, providing solutions that are lighter, more efficient, and environmentally friendly compared to traditional silicon-based products. The company’s core products include organic thin-film transistors (OTFTs) and complementary metal-oxide-semiconductor (CMOS) technologies tailored for applications in OLED displays, wearables, and IoT devices.

How the Company Makes Money

SmartKem generates revenue through the sale of its proprietary organic semiconductor materials and technologies. The company's revenue model is primarily based on direct sales of its products to manufacturers of electronic devices, as well as licensing agreements that allow partners to utilize its technology in their own products. Key revenue streams include contract manufacturing, R&D collaborations with major players in the electronics industry, and partnerships with universities and research institutions aimed at advancing organic electronics. Additionally, SmartKem may benefit from joint ventures and strategic alliances that enhance its market reach and product development capabilities.

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: Positive
• Last Price: 2.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.2 is above the 20-day moving average (MA) of 2.15, above the 50-day MA of 1.57, and above the 200-day MA of 1.93, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMTK.

SmartKem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRT	65 Neutral	$31.83M	―	-0.11%	―	-13.80%	-103.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRSO	51 Neutral	$12.31M	―	-200.76%	―	1.80%	89.30%
LEDS	45 Neutral	$18.83M	―	-14.79%	―	485.62%	85.02%
PXLW	45 Neutral	$47.64M	―	―	―	-44.05%	-2.33%
GCTS	45 Neutral	$81.00M	―	―	―	28.31%	-239.16%
SMTK	40 Underperform	$10.77M	―	-451.42%	―	125.58%	-0.65%

SmartKem Corporate Events

SmartKem Amends Agreement to Lower Issuance Price

On October 13, 2025, SmartKem entered into an Amendment Agreement with certain holders of securities from its June 2023 private placement. The agreement amends the Purchase Agreement to lower the price at which a Lower Price Issuance would occur from $4.00 to $2.75, potentially impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (SMTK) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

SmartKem Announces Investor Relations Agreements

On October 7, 2025, SmartKem, Inc. announced agreements with two consulting firms to provide investor relations services, issuing up to 500,000 shares of common stock as compensation, exempt from registration under the Securities Act. Additionally, SmartKem entered into a non-binding letter of intent with Jericho Energy Ventures Inc. on October 6, 2025, for a potential all-stock business combination, which would result in Jericho stockholders owning 65% of the combined company. The proposed transaction is subject to significant conditions and requires additional capital, with no assurance of completion.

The most recent analyst rating on (SMTK) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

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.

The most recent analyst rating on (SMTK) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

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.

The most recent analyst rating on (SMTK) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

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.