SmartFinancial (SMBK) AI Stock Analysis

• Market Cap: $631.11M
• Dividend Yield: 0.86%
• Average Volume (3M): 46.69K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.02
• Revenue Growth: 16.38%
• EPS Growth: 63.51%
• Country: US
• Employees: 597
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 17,020,313
• 10 Day Avg. Volume: 46,848
• 30 Day Avg. Volume: 46,685
• 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: 0.88
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 9.01
• 1Y Price Target: $37.00
• Price Target Upside: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $40.00 ▲(7.87% Upside)

SmartFinancial's overall stock score is driven by strong financial performance and positive earnings call sentiment. The technical analysis supports a bullish trend, while recent corporate events further strengthen the company's market position. Valuation is reasonable, though not a standout factor.

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 through a commission-based model, earning a percentage from insurance carriers for each policy sold through its platform. The key revenue streams include commissions from auto, home, and life insurance sales, as well as potential referral fees from partnerships with financial institutions. Additionally, SmartFinancial may generate income from advertising on its platform and by providing leads to insurance agents and brokers. The company's growth is also supported by strategic partnerships with various insurance providers, which enhance its product offerings and improve customer access to competitive insurance options.

SmartFinancial Financial Statement Overview

Summary

SmartFinancial exhibits strong financial health characterized by consistent revenue growth, solid profitability margins, and efficient cash flow management. The balance sheet is stable with low leverage, although there is potential to enhance equity ratios.

Income Statement

SmartFinancial has demonstrated consistent revenue growth with a TTM revenue of $292 million, up from $285 million in the previous year. The gross profit margin stands at 58.8%, indicating efficient management of cost of goods sold. The net profit margin is 13.0%, reflecting solid profitability. EBIT and EBITDA margins are 16.1% and 19.9% respectively, showcasing operational effectiveness.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.09, indicating low financial leverage. The return on equity is 7.5%, suggesting moderate returns on shareholders' investments. An equity ratio of 9.3% highlights a stable capital structure, though there is room for improvement in equity financing.

Cash Flow

The cash flow statement reveals robust cash generation capabilities with a free cash flow growth rate of 19.9% year-over-year. The operating cash flow to net income ratio is 1.57, demonstrating effective cash conversion. The free cash flow to net income ratio of 1.46 indicates strong cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	301.55M	285.27M	240.37M	186.55M	149.18M	133.04M
Gross Profit	178.96M	166.35M	149.38M	161.20M	135.71M	107.61M
EBITDA	61.93M	56.87M	49.72M	67.55M	53.32M	38.65M
Net Income	41.74M	36.14M	28.59M	43.02M	34.79M	24.33M
Balance Sheet
Total Assets	5.49B	5.28B	4.83B	4.61B	4.61B	3.30B
Cash, Cash Equivalents and Short-Term Investments	682.11M	684.73M	703.23M	735.01M	1.49B	630.94M
Total Debt	46.69M	47.78M	55.20M	83.92M	141.73M	120.55M
Total Liabilities	4.97B	4.78B	4.37B	4.18B	4.18B	2.95B
Stockholders Equity	5.36B	491.35M	459.89M	432.45M	429.43M	357.17M
Cash Flow
Free Cash Flow	53.30M	46.30M	33.45M	44.31M	43.80M	23.63M
Operating Cash Flow	57.39M	52.70M	39.72M	56.79M	46.18M	29.07M
Investing Cash Flow	-576.81M	-420.22M	-135.24M	-840.82M	-264.99M	-259.34M
Financing Cash Flow	541.68M	402.82M	181.37M	5.37M	782.17M	528.02M

SmartFinancial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 37.08 is above the 20-day moving average (MA) of 35.91, above the 50-day MA of 35.26, and above the 200-day MA of 33.04, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, 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
SMBK	78 Outperform	$631.11M	14.98	8.42%	0.86%	16.38%	63.51%
MPB	77 Outperform	$695.02M	12.65	6.60%	2.65%	10.75%	-12.34%
PGC	75 Outperform	$510.04M	15.86	5.31%	0.69%	7.35%	-2.65%
FMNB	73 Outperform	$566.58M	11.23	12.08%	4.52%	6.15%	-1.27%
NPB	70 Outperform	$640.90M	―		0.27%	―	―
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
FISI	60 Neutral	$552.56M	8.52	-6.53%	4.44%	-29.94%	-178.36%

SmartFinancial Corporate Events

SmartFinancial Enters $100M Subordinated Note Agreement

On August 20, 2025, SmartFinancial, Inc. entered into a Subordinated Note Purchase Agreement with institutional accredited investors and qualified institutional buyers, resulting in the sale of $100 million in subordinated notes due 2035. The proceeds are intended for general corporate purposes, including redeeming up to $40 million of existing notes due 2028. This strategic financial maneuver aims to enhance SmartFinancial’s capital structure and potentially improve its market positioning by qualifying the notes as Tier 2 capital for regulatory purposes.

SmartFinancial Declares Quarterly Cash Dividend

On July 24, 2025, SmartFinancial, Inc. announced that its board of directors declared a quarterly cash dividend of $0.08 per share, payable on August 25, 2025, to shareholders recorded by August 8, 2025. This decision reflects SmartFinancial’s ongoing commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.

SmartFinancial Reports Strong Q2 2025 Earnings Growth

SmartFinancial reported a net income of $11.7 million for the second quarter of 2025, marking an increase from $8.0 million in the same quarter of 2024. The company experienced a 13% annualized growth in net organic loans and leases, and maintained solid credit quality with nonperforming assets at 0.19% of total assets. The quarter also saw a 13.7% growth in tangible book value per share and the addition of three new team members to its Commercial and Private Banking teams. The company continues to strengthen its capital base and asset quality, while being recertified as a Great Place to Work by over 92% of its associates.

SmartFinancial Shareholders Approve Omnibus Incentive Plan

On May 22, 2025, SmartFinancial, Inc. held its Annual Meeting of Shareholders, where several key decisions were made. The shareholders approved the Omnibus Incentive Plan, which reserves 1,690,000 shares for issuance, and elected directors to serve until 2026. Additionally, the appointment of Forvis Mazars, LLP as the independent public accounting firm for 2025 was ratified, and the compensation for named executive officers was approved on a non-binding advisory basis.