SmartKem Inc. Common Stock (SMTK)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $0.46, SmartKem's $13.1M market cap and FairStock P/B of 0.02 may look asset-cheap, but Graham would ask whether there is earning power behind the assets. There is not yet. Filed revenue was $27,000 in FY2023, $82,000 in FY2024, and $697,000 in FY2025; net losses were $8.5M, $10.3M, and $10.5M. In fiscal Q1 2026 (quarter ended 2026-03-31), revenue was $20,000 and net loss was $19.4M; in fiscal Q2 2026 (quarter ended 2026-06-30), net loss was $3.3M. That is a tiny commercial footprint with large cash consumption. FairStock's TTM FCF is -$5.1M (FCF yield -39.2%), ROE -598.72%, ROCE -469.09%, Piotroski 3/9, and Altman Z -7.37; these are not signs of a durable moat or financial strength. The supplied D/E is 0.11, so debt is low, but the business is still burning cash. The proprietary TRUFLEX materials and sensor work could become valuable if adoption in MicroLED, AMOLED, AI chip packaging, or sensors produces real orders, but today the company has no Lynch category because it lost money in each of the last four years. The FairStock Score is 31/100. I see a speculative technology option, not a proven Buffett-style business; price is low, but value depends on future commercial proof.

In plain English: SmartKem makes special semiconductor materials for displays, sensors, and chip packaging. It is still very small, has not made a profit, and its losses are much bigger than its sales. At $0.46 a share, the $13 million market value is hard to judge as cheap or expensive because the company has little profit to value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer