SmartFinancial (SMBK) AI Stock Analysis

• Market Cap: $661.54M
• Dividend Yield: 0.82%
• Average Volume (3M): 61.23K
• Price to Earnings (P/E): 14.0
• 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): 0.86
• 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: 0.84
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 8.23
• 1Y Price Target: $40.13
• Price Target Upside: 4.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $42.00 ▲(9.69% Upside)

SmartFinancial's strong financial performance and positive earnings call sentiment are the primary drivers of its score. The technical analysis supports a bullish outlook, while the valuation remains reasonable. The company's strategic focus on growth and efficiency further enhances its investment appeal.

Positive Factors

Revenue Growth

SmartFinancial's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Operational Efficiency

Enhanced operational efficiency reflects better cost management and resource utilization, contributing to sustained profitability.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin could indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Net Interest Margin Compression

Compression in net interest margin may affect future earnings potential, especially if interest rate pressures persist.

Decrease in Non-Interest Income

A decline in non-interest income suggests challenges in diversifying revenue streams, which could affect financial resilience.

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

SmartFinancial demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust, with low leverage and a strong equity position. However, cash flow management presents some challenges, with negative free cash flow growth in the TTM. Overall, the company is well-positioned but should focus on improving cash flow sustainability.

Income Statement

SmartFinancial shows a consistent revenue growth trajectory with a TTM revenue growth rate of 3.24%. The gross profit margin is strong at 59.35%, and the net profit margin has improved to 13.84% in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the historical volatility in margins suggests potential risks in maintaining these levels.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.0087 in the TTM, showcasing strong financial stability. The return on equity is modest at 2.44%, reflecting room for improvement in utilizing equity effectively. The equity ratio is robust, indicating a strong capital base relative to assets.

Cash Flow

SmartFinancial's cash flow performance is stable, with a high free cash flow to net income ratio of 0.93, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate is negative in the TTM, suggesting challenges in sustaining cash flow growth. The operating cash flow to net income ratio is low, indicating potential pressure on cash flow relative to earnings.

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: 38.29
• 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 SMBK, the sentiment is Positive. The current price of 38.29 is above the 20-day moving average (MA) of 38.01, above the 50-day MA of 36.33, and above the 200-day MA of 33.97, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 37.66 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
SMBC	79 Outperform	$695.28M	11.08	11.54%	1.59%	9.34%	25.21%
SMBK	79 Outperform	$661.54M	13.97	9.01%	0.82%	13.41%	41.78%
SPFI	79 Outperform	$649.26M	11.27	12.97%	1.57%	5.87%	37.99%
HTBK	78 Outperform	$767.88M	17.77	6.26%	4.16%	8.23%	-0.07%
SUPV	74 Outperform	$1.17B	62.64	2.35%	1.54%	-50.96%	-89.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOFG	64 Neutral	$829.23M	14.01	10.01%	2.46%	89.00%	―

SmartFinancial Corporate Events

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.

SmartFinancial Reports Strong Q3 2025 Financial Results

On October 21, 2025, SmartFinancial announced its third-quarter 2025 financial results, reporting a net income of $13.7 million, a significant increase from $9.1 million in the same quarter of 2024. The company achieved over $50 million in quarterly operating revenue and saw substantial growth in loans and deposits. Strategic actions included a $4.0 million gain from selling SBK Insurance and repositioning securities, which resulted in a pre-tax loss. These moves, along with a $100 million subordinated debt issuance, have strengthened SmartFinancial’s balance sheet and positioned it for future growth.