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SmartKem
(NASDAQ:SMTK)
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Rating:40Underperform
Price Target:
$0.20
▼(-1.50% Downside)
Action:Downgraded
Date:08/04/26
The score is held down primarily by weak financial performance (large net losses and ongoing negative free cash flow) and a poor technical trend (price below key moving averages with negative MACD). Valuation provides little support given negative earnings and no dividend yield, while corporate events are mixed—funding actions support liquidity but raise dilution risk, and the all-stock Ferrox deal plus subsidiary liquidation add execution and uncertainty.
Positive Factors
Proprietary OTFT technology
SmartKem’s proprietary OTFT materials and process know‑how create a durable technology moat for printed and flexible displays. This IP underpins multiple revenue streams (materials sales, licensing, engineering services) and supports long‑term partnerships as manufacturers adopt printed backplane methods.
Negative Factors
Sustained negative cash flow
Material negative operating and free cash flow indicate ongoing cash burn that will require external financing to sustain operations and commercialization. Persistent FCF deficits constrain reinvestment, increase reliance on dilutive funding, and elevate execution risk over the next several quarters if cash generation doesn't improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary OTFT technology
SmartKem’s proprietary OTFT materials and process know‑how create a durable technology moat for printed and flexible displays. This IP underpins multiple revenue streams (materials sales, licensing, engineering services) and supports long‑term partnerships as manufacturers adopt printed backplane methods.
Read all positive factors
SmartKem (SMTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.56M
Dividend YieldN/A
Average Volume (3M)345.23K
Price to Earnings (P/E)―
Beta (1Y)0.05
Revenue Growth560.95%
EPS Growth57.92%
CountryUS
Employees29
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-2.31
Shares Outstanding25,862,642
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-1.03
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’s revenue model is based on monetizing its proprietary organic semiconductor materials and the ability to transfer its OTFT technology into partners’ and customers’ manufacturing environments. The company makes money primarily through: (1...
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
0.20
Price Trends
0.27
Negative
0.27
Negative
0.73
Negative
Market Momentum
-0.02
Negative
36.64
Neutral
40.85
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 0.2 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.27, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 40.85 is Neutral, 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 | $38.24M | 0.60 | -2573.87% | ― | -38.72% | 16.01% | |
57 Neutral | $17.62M | -16.38 | -43.09% | ― | -16.64% | -79.86% | |
47 Neutral | $36.40M | -0.22 | -134.56% | ― | -34.03% | ― | |
46 Neutral | $169.99M | -5.13 | -29.33% | ― | 11.92% | 7.07% | |
41 Neutral | $9.83M | -0.78 | -171.32% | ― | -40.57% | 75.19% | |
40 Underperform | $5.56M | -0.09 | 6905.79% | ― | 560.95% | 57.92% |
* Technology Sector Average
SMTK
SmartKem
0.16
-0.74
-81.89%
PRSO
Peraso
0.69
-0.18
-21.05%
PXLW
Pixelworks
6.24
-3.91
-38.55%
LEDS
SemiLEDs
2.10
0.53
33.76%
SQNS
Sequans Communications S A
2.71
-10.49
-79.47%
VLN
Valens
1.75
-0.63
-26.47%
SmartKem Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SmartKem Announces All-Stock Acquisition of Ferrox Minerals
Positive
Aug 3, 2026
On August 3, 2026, SmartKem, Inc., a Nasdaq‑listed materials science company specializing in custom electronic materials, agreed to acquire British Virgin Islands‑based Ferrox Critical Minerals Ltd., a developer of titanium, iron and v...
Business Operations and StrategyPrivate Placements and Financing
SmartKem Extends Major Convertible Bridge Financing to Ferrox
Positive
Jul 27, 2026
On July 27, 2026, SmartKem, Inc. extended an additional $4.5 million convertible bridge loan to Ferrox Critical Minerals, a British Virgin Islands company, under a note bearing 5% annual interest and maturing on January 31, 2027, and received a $4...
Private Placements and Financing
SmartKem Announces Additional Private Equity Financing Closings
Positive
Jul 21, 2026
On March 30, 2026, SmartKem, Inc. entered into a Securities Purchase Agreement with institutional investors to sell up to 21,411.5 shares of Series A convertible preferred stock and accompanying warrants to buy common stock for an aggregate purcha...
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...
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.