SmartKem (SMTK) Fundamental Analysis: Revenue, Earnings & Valuation

2.59 / 10

Underperform

Financial evaluation reveals concerning fundamentals for SmartKem, scoring only 2.6/10. Key weaknesses include negative net income-to-revenue (-0.1516), low cash relative to market value (-0.0663), and declining profit growth (-11.03% YoY). Although interest coverage is healthy (15.5), the overall structure is guarded, leading to an Underperform rating and a fundamental score of 2.6/10.

Analysis Checks(4/10)

Net cash flow from operating activities / Operating revenue (%)

Value-4647.79

Score0/3

Weight-4.02%

1M Return-0.90%

Net income-Revenue

Value-0.15

Score0/3

Weight22.87%

1M Return4.05%

PB-ROE

Value0.85

Score2/3

Weight31.00%

1M Return4.93%

Total profit (YoY growth rate %)

Value-11.03

Score2/3

Weight10.34%

1M Return2.02%

Net cash flow from operating activities (YoY growth rate %)

Value9.82

Score0/3

Weight-0.15%

1M Return-0.03%

Cash-UP

Value-0.05

Score1/3

Weight-14.51%

1M Return-3.32%

Net cash flow from operating activities / Total liabilities (%)

Value-1.02

Score0/3

Weight-2.43%

1M Return-0.54%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.51

Score2/3

Weight13.18%

1M Return2.54%

Asset-MV

Value-0.51

Score0/3

Weight1.14%

1M Return0.25%

Cash-MV

Value-0.07

Score2/3

Weight42.58%

1M Return7.05%

Is SMTK fundamentally strong?

SMTK scores 2.59/10 on fundamentals and holds a Premium valuation at present. Backed by its -464.63% ROE, -6262.36% net margin, -0.22 P/E ratio, -1.01 P/B ratio, and -53.51% earnings growth, these metrics solidify its Underperform investment rating.