SmartKem (SMTK) AI Stock Analysis

• Market Cap: $2.03M
• Dividend Yield: N/A
• Average Volume (3M): 345.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: 345.00%
• EPS Growth: -13.31%
• Country: US
• Employees: 27
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.45
• Shares Outstanding: 7,516,818
• 10 Day Avg. Volume: 406,804
• 30 Day Avg. Volume: 345,225
• PEG Ratio: 0.02
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 115.30
• P/FCF Ratio: -1.16
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 6.08
• Enterprise Value/Gross Profit: -9.75
• Enterprise Value/Ebitda: -0.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.67 ▼(-43.78% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily weighed down by weak financial performance (large losses, cash burn, and negative equity) and a clear technical downtrend below major moving averages. Corporate events provide some upside potential via a paid proof-of-concept, but repeated capital raises highlight ongoing funding risk, and valuation remains constrained by negative earnings.

Positive Factors

Proprietary IP and Materials

SmartKem’s core technology—proprietary OTFT inks and process know‑how—provides a durable technical moat in printed electronics. This IP underpins multiple monetization paths (consumables, licensing, engineering services) and supports long‑term revenue diversification if commercial adoption scales.

Paid proof‑of‑concept with a major OEM

A paid, year‑long POC with a global consumer electronics leader is structural validation of SmartKem’s OTFT integration in MicroLED wearables. Successful demonstration could translate into multi‑year supply and engineering contracts, moving the company from R&D toward recurring consumables and licensing revenue streams.

Move toward vertical supply integration

The LOI to acquire Carbonium Core targets vertical integration of a critical input, aiming to secure domestic graphite supply. If executed, this reduces raw‑material risk, supports manufacturing scale‑up, and strengthens SmartKem’s control over supply continuity—important for long‑lead industrial customers.

Negative Factors

Negative stockholders' equity

The shift to negative equity is a meaningful structural red flag: it reflects cumulative losses and erodes the balance sheet cushion. Persisting negative equity constrains financing options, increases lender and counterparty risk, and can limit the company’s ability to fund scale‑up without dilutive capital.

Persistent cash burn and weak cash generation

Sustained negative operating and free cash flow indicate the business is not yet self‑funding. Ongoing cash burn pressures runway, forces recurring external financing, and diverts management attention from commercialization to liquidity management, hindering long‑term execution and supplier relationships.

Ongoing funding and dilution risk

Repeated small capital raises and prior secured‑note financings signal structural funding dependency. Limited proceeds relative to operating losses suggest continued dilution risk and constrained liquidity, which can slow product development, delay customer rollouts, and reduce bargaining power with strategic partners.

SmartKem Business Overview & Revenue Model

Company Description

SmartKem, Inc. engages in the development of materials and processes for organic thin-film transistors backplanes for the manufacture of flexible electronics. Its transistor stacks are used in various applications, including bendable smart-phone displays, curved automotive displays, e-paper displays, wearables, fingerprint sensors, and printed biosensors. SmartKem, Inc. was founded in 2009 and is headquartered in Manchester, the United Kingdom.

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

Despite strong percentage revenue growth off a small base, profitability and cash generation are very weak (negative gross profit, deep net losses, and sustained cash burn). The shift to negative stockholders’ equity materially increases balance-sheet risk and indicates continued reliance on external capital.

Income Statement

Revenue is rising off a very small base (TTM (Trailing-Twelve-Months) up ~84% vs. the prior year), but profitability remains extremely weak. TTM gross profit turned negative and operating losses are still roughly $10M+, with net margin deeply negative. While prior years showed positive gross margin, the business has not demonstrated a path to operating leverage yet, making earnings quality and scalability the key concern.

Balance Sheet

Reported debt is low in absolute terms, but the balance sheet weakened materially with stockholders’ equity turning negative in TTM (Trailing-Twelve-Months), which raises financing and solvency risk if losses persist. Earlier annual periods showed positive equity and modest leverage, but the recent shift to negative equity is a meaningful red flag despite the small debt load.

Cash Flow

Cash generation is consistently negative: TTM (Trailing-Twelve-Months) operating cash flow was about -$7.4M and free cash flow about -$7.5M, with free cash flow deteriorating versus the prior year. Cash burn broadly tracks reported losses, and there is no evidence of self-funding operations yet, implying ongoing reliance on external capital.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.00K	82.00K	27.00K	40.00K	18.00K	94.00K
Gross Profit	-111.00K	50.00K	4.00K	7.00K	10.00K	39.00K
EBITDA	-12.79M	-9.86M	-9.50M	-9.23M	-16.66M	-15.93M
Net Income	-11.15M	-10.33M	-8.50M	-11.49M	-17.14M	-23.13M
Balance Sheet
Total Assets	3.25M	8.90M	11.27M	7.53M	15.06M	2.95M
Cash, Cash Equivalents and Short-Term Investments	881.00K	7.14M	8.84M	4.24M	12.23M	763.81K
Total Debt	650.00K	72.00K	249.00K	465.00K	125.00K	244.10K
Total Liabilities	6.20M	2.31M	3.16M	1.64M	1.54M	1.10M
Stockholders Equity	-2.95M	6.59M	8.11M	5.88M	13.52M	1.85M
Cash Flow
Free Cash Flow	-7.50M	-8.17M	-8.05M	-9.13M	-10.88M	-4.20M
Operating Cash Flow	-7.39M	-8.10M	-8.04M	-9.05M	-10.54M	-4.08M
Investing Cash Flow	-107.75K	-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: Negative
• Last Price: 1.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 0.47, above the 50-day MA of 0.98, and below the 200-day MA of 1.30, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 27.53 is Positive, neither overbought nor oversold. The STOCH value of 41.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMTK.

SmartKem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VLN	56 Neutral	$152.52M	-5.15	-23.56%	―	7.53%	-15.00%
PRSO	54 Neutral	$8.47M	-0.93	-180.20%	―	2.15%	94.29%
PXLW	49 Neutral	$37.19M	-1.28	―	―	-38.72%	16.01%
LEDS	47 Neutral	$13.15M	-10.34	-45.37%	―	729.81%	61.92%
SQNS	46 Neutral	$48.15M	―	-120.35%	―	2.80%	―
SMTK	42 Neutral	$2.03M	-0.07	―	―	345.00%	-13.31%

SmartKem Corporate Events

SmartKem Raises Capital Through New Securities Purchase Agreement

On January 30, 2026, SmartKem, Inc. entered into a securities purchase agreement with an institutional investor and closed an offering of 677,129 shares of common stock at $0.50 per share and 683,871 pre-funded warrants at $0.4999 per warrant, raising gross proceeds of $680,500. The immediately exercisable pre-funded warrants, which carry a minimal exercise price and a 9.99% beneficial ownership cap with adjustable limits subject to a 61-day waiting period, provide the investor with flexible upside exposure while supplying SmartKem with additional working capital and general corporate funding, potentially strengthening its liquidity position and broadening its institutional investor base.

The most recent analyst rating on (SMTK) stock is a Sell with a $0.65 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

SmartKem Announces Retirement of Chief Scientist Beverley Brown

On January 9, 2026, SmartKem, Inc. announced that its Chief Scientist, Beverley Brown, had informed the company of her intention to retire, with her departure becoming effective on January 12, 2026. The retirement of Brown, who held a key scientific leadership role, marks a notable change in SmartKem’s senior management team, with the transition formally acknowledged in a filing signed by Chief Financial Officer Barbra C. Keck on January 15, 2026.

The most recent analyst rating on (SMTK) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

SmartKem Signs Proof-of-Concept Deal for MicroLED Wearables

On January 6, 2026, SmartKem, Inc. announced a 12‑month paid proof‑of‑concept agreement with a global consumer electronics leader to co-develop next-generation smart wearables featuring a conformable MicroLED display that incorporates SmartKem’s proprietary OTFT technology. The collaboration aims to create curved-surface wearable devices that tackle key challenges in the wearables market—extreme miniaturization, low power use, outdoor visibility and impact resistance—by integrating SmartKem’s OTFT with MicroLEDs in a chip-first architecture, designing a MicroLED display optimized for smartphone-connected wearables and scalable manufacturing, and culminating in a proof-of-concept demonstration that could strengthen SmartKem’s positioning in advanced display solutions for consumer electronics.

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

SmartKem Extends Exclusivity Period with Jericho Energy

SmartKem, Inc. announced an amendment to its non-binding letter of intent with Jericho Energy Ventures Inc. regarding a potential business combination. The amendment extends the exclusivity period for negotiations to February 3, 2026, and the deadline for SmartKem to purchase $500,000 of Jericho’s common shares to December 31, 2025, impacting the timeline and conditions of the proposed transaction.

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.