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SmartKem
(NASDAQ:SMTK)
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Rating:41Neutral
Price Target:
$0.22
▼(-81.34% Downside)
Action:Reiterated
Date:06/27/26
The score is primarily held down by weak financial performance—persistent net losses, flat revenue, and ongoing negative operating/free cash flow—along with bearish technicals (price below key moving averages and negative MACD). Corporate events add some liquidity/strategic positives but are offset by dilution risk and the subsidiary liquidation development; valuation provides limited support due to negative earnings and no stated dividend.
Positive Factors
High gross margin
An extremely high gross margin (~99%) indicates the company’s materials and IP can command strong unit economics. That margin profile provides durable profit potential as volumes scale, meaning fewer revenue dollars are needed to absorb fixed costs and move toward sustainable profitability.
Negative Factors
Negative operating/free cash flow
Consistent negative operating and free cash flow (~-$6.0M TTM) is a structural weakness: it erodes reserves and forces reliance on external financing. Over months this constrains R&D, qualification programs and partner rollouts, making commercial scaling dependent on continued capital access.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
An extremely high gross margin (~99%) indicates the company’s materials and IP can command strong unit economics. That margin profile provides durable profit potential as volumes scale, meaning fewer revenue dollars are needed to absorb fixed costs and move toward sustainable profitability.
Read all positive factors
SmartKem (SMTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.23M
Dividend YieldN/A
Average Volume (3M)345.23K
Price to Earnings (P/E)―
Beta (1Y)0.05
Revenue Growth560.95%
EPS Growth57.92%
CountryUS
Employees27
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-2.31
Shares Outstanding21,446,213
10 Day Avg. Volume406,804
30 Day Avg. Volume345,225
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-2.22
Price to Sales (P/S)0.56
P/FCF Ratio-1.11
Enterprise Value/Market Cap-1.09
Enterprise Value/Revenue-0.37
Enterprise Value/Gross Profit-0.37
Enterprise Value/Ebitda0.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SmartKem Business Overview & Revenue Model
Company Description
SmartKem, Inc. focuses on developing innovative materials and processes essential for organic thin-film transistor (OTFT) backplanes, which are crucial components in the production of flexible electronic devices. Their advanced transistor technolo...
How the Company Makes Money
SmartKem generates revenue primarily through licensing and related commercialization arrangements for its organic semiconductor materials technology and manufacturing process know-how, rather than through high-volume in-house manufacturing of end ...
SmartKem Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.61M | 15.61M | 82.00K | 27.00K | 40.00K | 18.00K |
| Gross Profit | 15.35M | 15.34M | 50.00K | 4.00K | 7.00K | 10.00K |
| EBITDA | -18.30M | -1.42M | -9.86M | -9.50M | -11.01M | -16.66M |
| Net Income | -27.74M | -10.51M | -10.33M | -8.50M | -11.49M | -17.14M |
Balance Sheet | ||||||
| Total Assets | 9.48M | 2.29M | 8.90M | 11.27M | 7.53M | 15.06M |
| Cash, Cash Equivalents and Short-Term Investments | 7.57M | 374.00K | 7.14M | 8.84M | 4.24M | 12.23M |
| Total Debt | 608.00K | 1.51M | 72.00K | 249.00K | 465.00K | 125.00K |
| Total Liabilities | 4.07M | 6.22M | 2.31M | 3.16M | 1.64M | 1.54M |
| Stockholders Equity | 5.41M | -3.93M | 6.59M | 8.11M | 5.88M | 13.52M |
Cash Flow | ||||||
| Free Cash Flow | -6.09M | -7.86M | -8.17M | -8.05M | -9.13M | -10.88M |
| Operating Cash Flow | -5.97M | -7.74M | -8.10M | -8.04M | -9.05M | -10.54M |
| Investing Cash Flow | -123.00K | -123.00K | -75.00K | -18.00K | -79.00K | -341.00K |
| Financing Cash Flow | 9.60M | 1.00M | 6.53M | 12.69M | 1.83M | 22.20M |
SmartKem Technical Analysis
Negative
1.19
Price Trends
0.30
Negative
0.30
Negative
0.95
Negative
Market Momentum
-0.02
Positive
44.51
Neutral
10.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMTK, the sentiment is Negative. The current price of 1.19 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.30, and above the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMTK.
SmartKem Risk Analysis
SmartKem disclosed 38 risk factors in its most recent earnings report. SmartKem reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SmartKem Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $40.66M | 0.62 | -2573.87% | ― | -38.72% | 16.01% | |
54 Neutral | $12.80M | -5.84 | -45.37% | ― | 133.48% | -92.38% | |
52 Neutral | $50.32M | -0.31 | -134.56% | ― | -34.03% | ― | |
48 Neutral | $214.38M | -7.09 | -29.33% | ― | 11.92% | 7.07% | |
46 Neutral | $11.56M | -1.00 | -171.32% | ― | -40.57% | 75.19% | |
41 Neutral | $5.23M | -0.10 | -610.88% | ― | 560.95% | 57.92% |
* Technology Sector Average
SMTK
SmartKem
0.24
-0.77
-76.24%
PRSO
Peraso
0.83
-0.19
-18.63%
PXLW
Pixelworks
5.87
-0.95
-13.93%
LEDS
SemiLEDs
1.63
-0.86
-34.54%
SQNS
Sequans Communications S A
3.42
-11.08
-76.41%
VLN
Valens
2.17
-0.37
-14.57%
SmartKem Corporate Events
Business Operations and StrategyPrivate Placements and Financing
SmartKem expands financing and strategic position in Ferrox
Positive
Jun 26, 2026
On June 22, 2026, SmartKem, Inc. extended an additional $2.5 million convertible bridge loan to Ferrox Critical Minerals, earning a $200,000 origination fee and setting a 5% interest rate maturing on December 31, 2026, with steep default penalties...
Executive/Board ChangesShareholder Meetings
SmartKem Stockholders Approve Directors and Executive Compensation
Positive
Jun 26, 2026
On June 23, 2026, SmartKem, Inc. held its Annual Meeting of Stockholders to vote on eleven proposals, with 14,391,656 of 21,446,213 eligible shares represented, constituting a quorum. Stockholders elected Class II director nominees Klaas de Boer a...
Business Operations and StrategyLegal Proceedings
SmartKem Subsidiary Enters Creditors’ Voluntary Liquidation Process
Negative
Jun 12, 2026
On June 12, 2026, SmartKem, Inc. disclosed that the directors of its wholly owned U.K. subsidiary, SmartKem, Ltd., have instructed an administrator to commence a creditors’ voluntary liquidation process for the subsidiary. The company emphas...
Business Operations and StrategyPrivate Placements and Financing
SmartKem Provides Convertible Bridge Loan to Ferrox Minerals
Positive
Apr 29, 2026
On April 23, 2026, SmartKem, Inc. provided a $2.3 million bridge loan to British Virgin Islands-based Ferrox Critical Minerals via a convertible promissory note bearing 5% annual interest and maturing on October 30, 2026, with SmartKem receiving a...
Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and ComplianceStock Split
SmartKem Raises Capital Through New Private Placement Agreements
Positive
Mar 31, 2026
On March 30, 2026, SmartKem entered a private placement agreement to issue 11,411.5 shares of Series A Convertible Preferred Stock and warrants for up to 23,251,960 common shares, with gross proceeds expected at about $9.1 million, partly via exch...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.