SmartFinancial (SMBK) AI Stock Analysis

• Market Cap: $679.76M
• Dividend Yield: 0.84%
• Average Volume (3M): 61.23K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.93
• Revenue Growth: 13.41%
• EPS Growth: 41.78%
• Country: US
• Employees: 597
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 17,028,002
• 10 Day Avg. Volume: 76,213
• 30 Day Avg. Volume: 61,232
• PEG Ratio: 0.53
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 11.22
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 5.87
• 1Y Price Target: $45.00
• Price Target Upside: 7.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $45.00 ▲(7.45% Upside)

The score is driven primarily by solid financial performance (strong cash generation and low leverage) and a favorable earnings outlook (margin improvement, growth targets, and disciplined funding strategy). Technicals are supportive with an uptrend above major moving averages, while valuation is reasonable but the low dividend yield limits the valuation/income support.

Positive Factors

Strong cash generation

High free cash flow conversion (FCF/net income ~97.85%) and near-10% FCF growth provide durable internal funding for loan originations, branch and staff expansion, dividends or capital build. This reduces reliance on external financing and supports multi-quarter strategic flexibility.

Operating efficiency and PPNR expansion

A 44% YoY PPNR increase alongside an efficiency ratio improving to ~60% shows sustained revenue diversification and expense control. Structural operating leverage increases profitability resilience, allowing the bank to invest in growth while better absorbing credit stress over several quarters.

Conservative balance sheet and capital

Low leverage (D/E 0.26), solid risk-based capital (~12.7%) and a conservative loan-to-deposit ratio (~85%) create durable liquidity and loss-absorption capacity. This structural strength supports sustained organic lending and reduces refinancing and solvency risk across economic cycles.

Negative Factors

Low return on equity

A modest ROE (~2.6%) indicates the bank currently earns low returns on its capital base, limiting shareholder value creation. Persistently low ROE can hinder the firm's ability to justify retained earnings, attract capital, or fund strategic initiatives without improving margin or asset yields.

Margin sensitivity to funding environment

Management's margin targets depend materially on funding costs and deposit behavior. Structural sensitivity to deposit pricing and market rates means competitive deposit pressure or adverse rate moves could compress NIM and PPNR over the medium term, challenging sustainable profitability.

Credit pocket and allowance model change

An isolated $2.4M provision for a small equipment portfolio and a planned allowance-model transition that may raise ACLs point to localized asset-quality risk and reserve volatility. Higher provisions reduce earnings and slow tangible book value growth until credit normalization occurs.

SmartFinancial Business Overview & Revenue Model

Company Description

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans; mortgage loans; and direct consumer installment loans, educational, and other revolving credit loans; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and Internet and mobile banking services. As of March 1, 2022, it had 41 full-service branches and 2 loan production offices in East and Middle Tennessee, Alabama, and the Florida Panhandle. The company is headquartered in Knoxville, Tennessee.

How the Company Makes Money

SmartFinancial generates revenue primarily through its technology platform by charging insurance carriers for leads and referrals generated from its services. The company earns a commission for each policy sold as a result of these referrals, which constitutes a significant portion of its revenue model. Additionally, SmartFinancial may generate income through partnerships with insurance providers, offering promotional opportunities and marketing services. The company's strategic focus on enhancing customer engagement through data analytics and targeted marketing campaigns also plays a crucial role in increasing its revenue streams.

SmartFinancial Financial Statement Overview

Summary

Solid overall fundamentals driven by strong cash flow quality (FCF to net income ~97.85%) and improving operating efficiency (higher EBIT/EBITDA margins). Balance sheet leverage is conservative (debt-to-equity 0.26), though profitability is tempered by modest ROE (2.59%) and declining gross margin.

Income Statement

SmartFinancial shows a consistent revenue growth trend with a TTM growth rate of 2.03% and a strong net profit margin of 15.28%. The gross profit margin has decreased over time, indicating potential cost pressures. However, the EBIT and EBITDA margins have improved significantly, suggesting better operational efficiency.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.26 in the TTM period, indicating prudent financial management. Return on equity is modest at 2.59%, reflecting moderate profitability. The equity ratio remains strong, showcasing a solid capital base.

Cash Flow

SmartFinancial demonstrates robust cash flow management with a free cash flow growth rate of 9.79% in the TTM period. The free cash flow to net income ratio is high at 97.85%, indicating efficient cash generation relative to earnings. This suggests strong liquidity and the ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	307.65M	285.27M	240.37M	186.55M	149.18M	133.04M
Gross Profit	184.25M	166.35M	149.38M	161.20M	135.71M	107.61M
EBITDA	67.82M	56.87M	49.72M	67.55M	53.32M	38.65M
Net Income	46.29M	36.14M	28.59M	43.02M	34.79M	24.33M
Balance Sheet
Total Assets	5.78B	5.28B	4.83B	4.64B	4.61B	3.30B
Cash, Cash Equivalents and Short-Term Investments	926.58M	684.73M	703.23M	735.01M	1.49B	630.94M
Total Debt	139.91M	47.78M	55.20M	83.92M	141.73M	120.55M
Total Liabilities	5.25B	4.78B	4.37B	4.21B	4.18B	2.95B
Stockholders Equity	538.37M	491.35M	459.89M	432.45M	429.43M	357.17M
Cash Flow
Free Cash Flow	58.51M	46.30M	33.45M	44.31M	43.80M	23.63M
Operating Cash Flow	61.88M	52.70M	39.72M	56.79M	46.18M	29.07M
Investing Cash Flow	-511.53M	-420.22M	-135.24M	-840.82M	-264.99M	-259.34M
Financing Cash Flow	813.86M	402.82M	181.37M	5.37M	782.17M	528.02M

SmartFinancial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMBK, the sentiment is Positive. The current price of 41.88 is above the 20-day moving average (MA) of 38.98, above the 50-day MA of 38.08, and above the 200-day MA of 35.09, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 47.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMBK.

SmartFinancial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTBK	79 Outperform	$781.22M	16.42	6.26%	4.16%	8.23%	-0.07%
SMBC	77 Outperform	$706.46M	10.82	11.54%	1.59%	9.34%	25.21%
SPFI	77 Outperform	$678.79M	12.11	12.54%	1.57%	5.87%	37.99%
SMBK	75 Outperform	$679.76M	13.40	9.01%	0.84%	13.41%	41.78%
SUPV	74 Outperform	$1.16B	63.00	2.35%	1.54%	-50.96%	-89.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOFG	63 Neutral	$955.78M	16.49	10.01%	2.46%	89.00%	―

SmartFinancial Corporate Events

SmartFinancial Announces Dividend and New Share Repurchase

On January 29, 2026, SmartFinancial’s board declared a quarterly cash dividend of $0.08 per share on its common stock, payable on March 2, 2026, to shareholders of record as of February 13, 2026, underscoring an ongoing capital return to investors. The board also authorized a new share repurchase program of up to $10 million in common stock, effective March 1, 2026, through February 28, 2027, replacing the prior plan and allowing flexible repurchases in various transaction formats, a move that signals confidence in the company’s valuation and provides additional capital management tools that may support earnings per share and shareholder value.

The most recent analyst rating on (SMBK) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on SmartFinancial stock, see the SMBK Stock Forecast page.

SmartFinancial Posts Strong Q4 2025 Earnings and Growth

On January 20, 2026, SmartFinancial reported strong results for the fourth quarter of 2025, posting net income and operating earnings of $13.7 million, or $0.81 per diluted share, up from $9.6 million, or $0.57 per share, a year earlier, and flat with the prior quarter on a net income basis. The quarter featured robust net organic loan and lease growth of $141 million, 8% annualized deposit growth, a 13% quarter-over-quarter increase in tangible book value per share, and a tax-equivalent net interest margin expansion to 3.38% driven by lower deposit and funding costs, alongside the company’s seventh consecutive quarter of positive operating leverage. For full-year 2025, management highlighted approximately 12% organic loan growth, 14% organic deposit growth excluding brokered deposits, and a 17% rise in tangible book value per share, underscoring improved profitability and operational efficiency, further supported by the completion of a multi-year core contract renegotiation and stable credit quality with nonperforming assets at 0.22% of total assets and an allowance for credit losses of 0.94% of loans and leases.

The most recent analyst rating on (SMBK) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on SmartFinancial stock, see the SMBK Stock Forecast page.

SmartFinancial Extends Exchange Offer for Subordinated Notes

On January 5, 2026, SmartFinancial, Inc. announced that it had extended its registered exchange offer for up to $100 million of its 7.25% Fixed-to-Floating Rate Subordinated Notes due 2035, allowing holders of unregistered notes issued in a private placement on August 20, 2025 to exchange them for an equal principal amount of registered notes. The offer, originally set to expire on January 2, 2026, was extended to January 9, 2026, with all other terms unchanged; as of January 2, 2026, $82.5 million, or 82.5%, of the outstanding notes had already been tendered, indicating strong investor participation and furthering the company’s efforts to enhance liquidity and tradability of its subordinated debt within the capital markets framework.

The most recent analyst rating on (SMBK) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on SmartFinancial stock, see the SMBK Stock Forecast page.

SmartFinancial Declares Quarterly Cash Dividend Announcement

On October 31, 2025, SmartFinancial‘s board of directors declared a quarterly cash dividend of $0.08 per share, payable on December 2, 2025, to shareholders of record as of November 17, 2025. This announcement, made public on November 3, 2025, reflects the company’s ongoing commitment to providing value to its shareholders and maintaining a stable financial position in the banking industry.

The most recent analyst rating on (SMBK) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on SmartFinancial stock, see the SMBK Stock Forecast page.