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HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 53GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.3%
Sector: 8.5%
Dividend Analysis audit
GROWTH
0.90%
Trailing Yield
$0.90
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
14%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SMARTFINANCIAL INC. (SMBK) receives a "Hold" rating with a composite score of 54.5/100, ranked #683 out of 4446 stocks. Key factor scores: Quality 53/100, Value 71/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
SMARTFINANCIAL INC. (SMBK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SMARTFINANCIAL INC. Do?
SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans; mortgage loans; and direct consumer installment loans, educational, and other revolving credit loans; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and Internet and mobile banking services. As of March 1, 2022, it had 41 full-service branches and 2 loan production offices in East and Middle Tennessee, Alabama, and the Florida Panhandle. The company is headquartered in Knoxville, Tennessee. SMARTFINANCIAL INC. (SMBK) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO William Y. Carroll and employs approximately 550 people, headquartered in KNOXVILLE, Tennessee. With a market capitalization of $672M, SMBK is one of the notable companies in the Financials sector.
SMARTFINANCIAL INC. (SMBK) Stock Rating — Hold (April 2026)
As of April 2026, SMARTFINANCIAL INC. receives a Hold rating with a composite score of 54.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SMBK ranks #683 out of 4,446 stocks in our coverage universe. Within the Financials sector, SMARTFINANCIAL INC. ranks #202 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SMBK Stock Price and 52-Week Range
SMARTFINANCIAL INC. (SMBK) currently trades at $42.60. The 52-week high for SMBK is $43.91, which means the stock is currently trading -3.0% from its annual peak. The 52-week low is $26.31, putting the stock 61.9% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is SMBK Overvalued or Undervalued? — Valuation Analysis
SMARTFINANCIAL INC. (SMBK) carries a value factor score of 71/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 15.18x, compared to the Financials sector average of 14.88x — a premium of 2%. The price-to-book ratio stands at 1.26x, versus the sector average of 1.22x. The price-to-sales ratio is 102.48x, compared to 0.90x for the average Financials stock. On an enterprise value basis, SMBK trades at 10.85x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, SMARTFINANCIAL INC. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
SMARTFINANCIAL INC. Profitability — ROE, Margins, and Quality Score
SMARTFINANCIAL INC. (SMBK) earns a quality factor score of 53/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.3%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.8% versus the sector average of 1.2%.
On a margin basis, SMARTFINANCIAL INC. reports gross margins of 0.0%. The operating margin is 833.1% (sector: 21.8%). Net profit margin stands at 686.2%, versus 17.7% for the average Financials stock. Revenue growth is running at 29.8% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
SMBK Debt, Balance Sheet, and Financial Health
SMARTFINANCIAL INC. has a debt-to-equity ratio of 961.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.10x, suggesting adequate working capital coverage. Total debt on the balance sheet is $1M. Cash and equivalents stand at $60M.
SMBK has a beta of 0.74, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SMARTFINANCIAL INC. is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
SMARTFINANCIAL INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, SMARTFINANCIAL INC. reported revenue of $7M and earnings per share (EPS) of $3.00. Net income for the quarter was $46M. Gross margin was 0.0%. Operating income came in at $56M.
In FY 2025, SMARTFINANCIAL INC. reported revenue of $7M and earnings per share (EPS) of $3.00. Net income for the quarter was $50M. Revenue grew 10.7% year-over-year compared to FY 2024. Operating income came in at $62M.
In Q3 2025, SMARTFINANCIAL INC. reported revenue of $2M and earnings per share (EPS) of $0.82. Net income for the quarter was $14M. Revenue grew -10.2% year-over-year compared to Q3 2024. Operating income came in at $17M.
In Q2 2025, SMARTFINANCIAL INC. reported revenue of $1M and earnings per share (EPS) of $0.70. Net income for the quarter was $12M. Revenue grew 10.6% year-over-year compared to Q2 2024. Operating income came in at $14M.
Over the past 8 quarters, SMARTFINANCIAL INC. has demonstrated a growth trajectory, with revenue expanding from $1M to $7M. Investors analyzing SMBK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SMBK Dividend Yield and Income Analysis
SMARTFINANCIAL INC. (SMBK) currently pays a dividend yield of 0.9%. At this yield, a $10,000 investment in SMBK stock would generate approximately $$90.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning SMBK yields less than the typical sector peer. With a net margin of 686.2%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
SMBK Momentum and Technical Analysis Profile
SMARTFINANCIAL INC. (SMBK) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 38/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SMBK vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing SMBK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SMBK vs S&P 500 (SPY) comparison to assess how SMARTFINANCIAL INC. stacks up against the broader market across all factor dimensions.
SMBK Next Earnings Date
No upcoming earnings date has been announced for SMARTFINANCIAL INC. (SMBK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SMBK? — Investment Thesis Summary
SMARTFINANCIAL INC. presents a balanced picture with arguments on both sides. The value score of 71/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 81/100) reduces downside risk.
In summary, SMARTFINANCIAL INC. (SMBK) earns a Hold rating with a composite score of 54.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SMBK stock.
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Institutional Research Dossier
SMARTFINANCIAL INC. (SMBK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on SmartFinancial, Inc. (SMBK). While the company exhibits attractive valuation metrics and strong profitability relative to the sector, concerns surrounding its long-term growth prospects and capital allocation strategy, as evidenced by a low Investment score in our quant model, temper our enthusiasm. The company's reliance on acquisitions for growth and the potential for integration challenges warrant a cautious approach.
SMBK's impressive operating and net margins, significantly exceeding sector averages, are noteworthy. However, the sustainability of these margins, given the relatively small revenue base and the competitive nature of the banking industry, remains a key question. Investors should closely monitor the company's ability to maintain its profitability while scaling its operations and navigating the evolving regulatory landscape.
Business Strategy & Overview
SmartFinancial operates as a bank holding company, primarily serving individuals and corporate customers through its subsidiary, SmartBank. The company's core business revolves around traditional banking activities, including deposit gathering and loan origination. It offers a range of deposit products, such as checking, savings, and money market accounts, as well as various loan products, including commercial real estate, consumer real estate, and commercial and industrial loans. The company generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits, and non-interest income, which includes fees from services like wealth management, insurance, and mortgage origination.
SmartFinancial's strategic focus appears to be on expanding its presence in the Southeast region of the United States, particularly in East and Middle Tennessee, Alabama, and the Florida Panhandle. The company has pursued a growth strategy that involves both organic expansion and acquisitions of other community banks. This approach allows SmartFinancial to quickly increase its market share and expand its geographic footprint. However, it also introduces integration risks and the potential for overpaying for acquisitions.
The company also offers wealth management, insurance, mortgage origination, and Internet and mobile banking services, which are designed to diversify its revenue streams and enhance customer relationships. These services provide cross-selling opportunities and can contribute to higher customer retention rates. The company's investment in technology, such as Internet and mobile banking, is crucial for attracting and retaining customers in an increasingly digital world.
SmartFinancial operates in a highly competitive industry, facing competition from other community banks, regional banks, and national banks. The company's ability to differentiate itself through superior customer service, competitive pricing, and innovative products and services is essential for its long-term success. The regulatory environment for banks is also complex and constantly evolving, requiring SmartFinancial to invest in compliance and risk management.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
29.8%
Sector: 9.4%
+218% VS SCTR
Economic Moat Analysis
SmartFinancial's economic moat is likely Narrow. While the company operates in a fragmented industry with numerous competitors, it benefits from some degree of customer relationships and local market knowledge, which can create switching costs for customers. Community banks often have a strong understanding of the local economy and the needs of their customers, allowing them to provide personalized service and build long-term relationships. This can make it more difficult for larger, national banks to compete effectively in these markets.
However, the banking industry is becoming increasingly commoditized, with customers having access to a wide range of financial products and services from various providers. The rise of online banking and fintech companies has further intensified competition and reduced switching costs. Customers can easily compare prices and services online, making it more difficult for banks to differentiate themselves based on price alone.
SmartFinancial's brand recognition is likely limited to the markets in which it operates, which restricts its ability to expand into new geographic areas. The company's reliance on acquisitions for growth also suggests that it may not have a strong organic growth engine. Acquisitions can be a risky strategy, as they can be difficult to integrate and may not always generate the expected returns.
The company's intangible assets, such as its brand and reputation, are likely not strong enough to create a significant competitive advantage. While SmartFinancial may have some cost advantages due to its smaller size and lower overhead costs compared to larger banks, these advantages are unlikely to be sustainable in the long run. Overall, SmartFinancial's economic moat is relatively weak, and the company faces significant competition from other banks and financial service providers.
Financial Health & Profitability
SmartFinancial's financial health presents a mixed picture. The company's revenue growth has been impressive, with a 29.8% increase compared to the sector average of 9.3%. This growth is likely driven by acquisitions and organic expansion. However, the absolute revenue figures are relatively small, suggesting that the company is still in the early stages of its growth trajectory. The quarterly financial history shows consistent revenue generation, with some fluctuations, but generally trending upwards.
The company's profitability metrics are exceptionally strong, with an operating margin of 833.1% and a net margin of 686.2%, significantly exceeding the sector averages of 22.0% and 17.8%, respectively. These high margins suggest that the company is either extremely efficient in its operations or that it has benefited from some non-recurring items. It's crucial to investigate the source of these high margins to determine their sustainability. The quarterly operating margins have consistently been high, indicating a potential trend, but further analysis is needed to confirm this.
SmartFinancial's return on equity (ROE) of 8.3% is slightly below the sector average of 8.5%. This suggests that the company is not as efficient in generating profits from its equity as its peers. However, the company's debt-to-equity ratio of 961.00 is significantly higher than the sector average of 115.00. This high leverage could be a concern, as it increases the company's financial risk and makes it more vulnerable to economic downturns. The company's total debt is relatively low at $1.30 million, but the high D/E ratio suggests a small equity base.
The company's free cash flow is negative at $-127.02 million, which is a significant concern. This indicates that the company is spending more cash than it is generating, which could put pressure on its liquidity. The current ratio of 1.10 is adequate, suggesting that the company has enough liquid assets to cover its short-term liabilities. However, the negative free cash flow warrants close monitoring.
Valuation Assessment
SmartFinancial's valuation metrics suggest that the stock is relatively undervalued compared to its peers. The company's price-to-earnings (P/E) ratio of 12.4x is lower than the sector average of 15.5x, indicating that investors are paying less for each dollar of earnings. Similarly, the company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.3x is lower than the sector average of 3.5x, suggesting that the company is undervalued on an enterprise value basis.
However, it's important to consider the company's growth prospects and risk profile when assessing its valuation. While the company has experienced strong revenue growth in the past, it's unclear whether this growth is sustainable in the long run. The company's high leverage and negative free cash flow also raise concerns about its financial health, which could justify a lower valuation.
The BCR proprietary quant model assigns a Value score of 72/100 to SmartFinancial, which supports the view that the stock is relatively undervalued. However, the model also assigns a low Investment score of 24/100, which suggests that the company's capital allocation strategy and growth prospects are not particularly attractive. This discrepancy highlights the importance of considering multiple factors when assessing a company's valuation.
Given the company's mixed financial health and uncertain growth prospects, the current valuation appears to be fair. While the stock may offer some upside potential if the company can sustain its growth and improve its financial health, the risks are also significant. Investors should carefully weigh the potential rewards against the risks before investing in SmartFinancial.
Risk & Uncertainty
SmartFinancial faces several risks and uncertainties that could negatively impact its business and financial performance. One of the primary risks is the integration risk associated with its acquisition-based growth strategy. Integrating acquired banks can be complex and time-consuming, and there is no guarantee that the integration will be successful. If SmartFinancial is unable to effectively integrate its acquisitions, it could experience disruptions to its operations, loss of customers, and higher-than-expected costs.
Another risk is the competitive nature of the banking industry. SmartFinancial faces competition from other community banks, regional banks, and national banks, as well as from non-bank financial service providers. The company's ability to compete effectively depends on its ability to offer competitive products and services, provide superior customer service, and maintain a strong brand reputation. Increased competition could lead to lower margins and reduced profitability.
The regulatory environment for banks is also complex and constantly evolving. SmartFinancial is subject to extensive regulations, including capital requirements, lending restrictions, and consumer protection laws. Changes in these regulations could increase the company's compliance costs and limit its ability to generate profits. The company's high debt-to-equity ratio also increases its financial risk and makes it more vulnerable to economic downturns. A significant increase in interest rates could negatively impact the company's profitability and its ability to repay its debt.
Finally, the company's reliance on a relatively small geographic area (East and Middle Tennessee, Alabama, and the Florida Panhandle) exposes it to regional economic risks. A downturn in the economy in these areas could negatively impact the company's loan portfolio and its ability to generate revenue.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSmartFinancial's low P/E and EV/EBITDA ratios suggest the stock is undervalued, offering significant upside potential as the market recognizes its true worth.
BULL VIEWThe company's impressive operating and net margins, far exceeding sector averages, demonstrate superior efficiency and profitability, driving strong earnings growth.
BULL VIEWSmartFinancial's strategic acquisitions and expansion into growing markets in the Southeast position it for continued revenue growth and market share gains.
The Bear Case
BEAR VIEWSmartFinancial's high debt-to-equity ratio and negative free cash flow raise concerns about its financial stability and ability to fund future growth.
BEAR VIEWThe company's reliance on acquisitions for growth creates integration risks and the potential for overpaying, which could negatively impact its long-term performance.
BEAR VIEWThe banking industry is highly competitive, and SmartFinancial's relatively small size and limited brand recognition make it vulnerable to larger, more established players.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SMBK and 4,400+ other equities.
SMARTFINANCIAL INC. exhibits a 2881% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
833.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
686.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-64%
Income Projection audit
A $10,000 investment would generate approximately $90 annually in dividends at the current trailing rate.
SG Americas Securities LLC Purchases 30,769 Shares of SmartFinancial, Inc. $SMBK
SG Americas Securities LLC significantly increased its stake in SmartFinancial, Inc. (NASDAQ:SMBK) by 801.7% in the fourth quarter, acquiring 30,769 shares to own a total of 34,607 shares valued at $1.28 million. SmartFinancial's board has approved a $10.0 million share buyback plan, allowing the company to reacquire up to 1.5% of its outstanding shares, suggesting management believes the stock is undervalued. The company also declared a quarterly dividend of $0.08 per share, resulting in an annualized dividend of $0.32 and a yield of 0.8%.
