MeritValue

SmartKem, Inc.

SMTKdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

SmartKem, Inc. earns about -146% on equity, and has bought back 68% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$18,0001$40,0002$27,0003$82,0004$697,0004
Net income−$17.1M5−$11.5M6−$8.5M7−$10.3M8−$10.5M8
Operating cash flow−$9.73M9−$9.05M10−$8.04M11−$8.1M12−$7.74M12
Capital expenditure$341,00013$79,00014$18,00015$75,00016$123,00016
Free cash flow (derived)−$10.1M9−$9.13M10−$8.06M11−$8.17M12−$7.86M12
Total debt—————
Cash & equivalents$12.2M17$4.24M18$8.84M19$7.14M20$374,00020
Diluted shares25.2M827,9061.3M3.3M8.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$4.82
your share of equity
Profit it earned you last year
−$12.88
Free cash flow it threw off
−$9.64
Debt you’d be carrying
—

10 shares is a claim on −$4.82 of net worth that earned you −$12.88 and generated −$9.64 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-146% avg · 5y
FY21 -127%FY22 -195%FY23 -105%FY24 -157%FY25 —

It earned an average -146% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−68% shares · 5y

Share count is down 68% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-23-005133 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-24-004098 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001558370-25-004151 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-040562 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001558370-23-005133 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001558370-24-004098 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001558370-25-004151 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-040562 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001558370-23-005133 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001558370-24-004098 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001558370-25-004151 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-040562 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001558370-23-005133 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001558370-24-004098 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001558370-25-004151 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-040562 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001558370-23-005133 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001558370-24-004098 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001558370-25-004151 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001104659-26-040562 (CashAndCashEquivalentsAtCarryingValue)