SmartKem (SMTK) AI Stock Analysis

• Market Cap: $5.97M
• Dividend Yield: N/A
• Average Volume (3M): 345.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.26
• 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: 5,479,787
• 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: 1.28
• Enterprise Value/Revenue: 43.05
• Enterprise Value/Gross Profit: -69.04
• Enterprise Value/Ebitda: -0.60
• 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: $1.00 ▼(-15.97% Downside)

The score is driven primarily by weak financial performance—persistent losses, cash burn, and negative equity—creating elevated financing risk. Technicals add pressure with a broad downtrend and negative momentum, while valuation is constrained by negative earnings. Corporate events are mixed, with a strategic proof-of-concept offset by clear capital and operational strain.

Positive Factors

Strategic Customer Validation

A paid 12-month POC with a global consumer electronics leader is a durable commercial validation milestone. It demonstrates customer willingness to fund development, can accelerate product integration, de-risks adoption, and creates a potential pathway to volume licensing or manufacturing partnerships over 2-6 months and beyond.

Proprietary OTFT Technology

SmartKem’s proprietary OTFT materials are a structural competitive advantage, enabling flexible, low‑power displays and sensors. This differentiated IP supports licensing, partnerships, and product integration across wearables and IoT, aligning with long-term secular demand for conformable electronics and manufacturing scalability.

Revenue Growth Traction

Sustained double‑digit TTM revenue growth off a small base indicates early commercial traction and validating demand for SmartKem’s materials. If maintained while scaling production, these top‑line gains could enable operating leverage and improve unit economics, supporting a transition toward sustainable margins over multiple quarters.

Negative Factors

Persistent Cash Burn

Consistent negative operating and free cash flow indicates ongoing reliance on external capital to fund operations and R&D. Continued cash burn increases dilution risk, constrains investment in scale and manufacturing, and undermines the company’s ability to capitalize on partnerships without securing durable financing.

Weakened Balance Sheet / Negative Equity

Transition to negative shareholders’ equity is a material solvency signal that raises creditor and counterparty concern. It can restrict access to favorable financing, increase borrowing costs or covenants, and limit strategic flexibility; if losses persist, this structural weakness could impair long‑term viability and growth investments.

Capital Constraints and Operational Reductions

Recent capital raises tied to securities purchase agreements coincide with reduced operations and delayed vendor payments, indicating strained liquidity and operational disruption. Such constraints can erode supplier relationships, slow product development and manufacturing scale-up, and materially increase execution risk over the medium term.

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

SmartKem is experiencing financial difficulties, marked by ongoing losses and cash flow challenges. While there is some revenue growth and manageable debt levels, persistent net losses and negative cash flows indicate the company is struggling to achieve profitability. The reliance on financing activities for cash flow support raises concerns about sustainable operations in the semiconductor industry.

Income Statement

SmartKem shows a trend of volatile and negative net income over recent years, with a significant net loss of -$10.33M in 2024. Revenue growth is inconsistent, with a notable increase from $27K in 2023 to $82K in 2024, but gross profit margins are low, indicating cost challenges. EBIT and EBITDA margins are negative, further highlighting profitability issues.

Balance Sheet

The company's balance sheet reflects a low debt-to-equity ratio due to minimal total debt and a positive stockholders' equity of $6.59M in 2024. However, the equity ratio is weakened by decreasing total assets over the years. The company maintains a strong cash position, with cash and short-term investments covering liabilities, but overall financial stability is compromised by historical losses.

Cash Flow

SmartKem's cash flow situation is concerning, with negative free cash flow reported at -$8.17M in 2024. Operating cash flow is also negative, indicating cash generation issues, while significant financing activities suggest reliance on external funding. The lack of free cash flow growth underscores ongoing cash management challenges.

Breakdown	TTM	Dec 2024	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: Positive
• RSI: Neutral
• 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 below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.57, and below the 200-day MA of 1.59, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.79 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	51 Neutral	$159.69M	―	-23.56%	―	7.53%	-15.00%
PXLW	47 Neutral	$40.34M	-1.36	―	―	-38.72%	16.01%
PRSO	46 Neutral	$8.72M	-0.99	-180.20%	―	2.15%	94.29%
LEDS	45 Neutral	$16.78M	-14.95	-45.37%	―	729.81%	61.92%
SQNS	43 Neutral	$77.96M	―	-18.19%	―	2.80%	―
SMTK	42 Neutral	$5.97M	-0.24	―	―	345.00%	-13.31%

SmartKem Corporate Events

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.

SmartKem Enters Securities Purchase Agreement for Capital

On October 31, 2025, SmartKem, Inc. entered into a securities purchase agreement involving the issuance of Senior Secured Notes and Warrants to raise capital. The company has significantly reduced its operations and delayed vendor payments due to capital constraints, leading to increased accounts payable since June 30, 2025. SmartKem requires additional capital to pay vendors and resume normal operations.

The most recent analyst rating on (SMTK) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SmartKem stock, see the SMTK Stock Forecast page.

SmartKem Amends Agreement to Lower Issuance Price

On October 13, 2025, SmartKem entered into an Amendment Agreement with certain holders of securities from its June 2023 private placement. The agreement amends the Purchase Agreement to lower the price at which a Lower Price Issuance would occur from $4.00 to $2.75, potentially impacting the company’s financial strategy and stakeholder interests.

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.

SmartKem Announces Investor Relations Agreements

On October 7, 2025, SmartKem, Inc. announced agreements with two consulting firms to provide investor relations services, issuing up to 500,000 shares of common stock as compensation, exempt from registration under the Securities Act. Additionally, SmartKem entered into a non-binding letter of intent with Jericho Energy Ventures Inc. on October 6, 2025, for a potential all-stock business combination, which would result in Jericho stockholders owning 65% of the combined company. The proposed transaction is subject to significant conditions and requires additional capital, with no assurance of completion.

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.