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SmartFinancial (SMBK)
NYSE:SMBK
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SmartFinancial
(NYSE:SMBK)
68Neutral
SmartFinancial (SMBK) vs. S&P 500 (SPY)
Market Cap
$522.35M
Dividend Yield1.04%
Average Volume (3M)42.38K
Price to Earnings (P/E)14.4
Beta (1Y)1.11
Revenue Growth18.81%
EPS Growth26.65%
CountryUS
Employees585
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.14
Shares Outstanding16,926,374
10 Day Avg. Volume53,064
30 Day Avg. Volume42,384
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)N/A
Price to Sales (P/S)3.30
Price to Cash Flow (P/CF)10.50
P/FCF Ratio3.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.00Price Target Upside23.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
SmartFinancial Business Overview & Revenue Model
Company DescriptionSmartFinancial, Inc. (SMBK) is a financial services company that operates primarily in the banking sector. It offers a wide range of banking products and services, including personal and business banking, loans, mortgages, and investment services, primarily through its subsidiary, SmartBank. The company is committed to providing customer-centric solutions to meet the financial needs of individuals and businesses within its service areas.
How the Company Makes MoneySmartFinancial makes money through various revenue streams typical of a traditional banking institution. Its primary sources of income include interest income from loans and mortgages, which involves charging interest on the money lent to individuals and businesses. Additionally, the company earns from non-interest income sources such as service charges on deposit accounts, fees from financial services, and investment advisory fees. The company's earnings are also supplemented by strategic partnerships and initiatives aimed at expanding its market reach and enhancing its service offerings.
SmartFinancial Financial Statement Overview
Summary
SmartFinancial presents a solid financial position with significant revenue growth and efficient cash conversion. The company benefits from low leverage and a stable equity base, though there is room for improvement in profitability metrics and cash management stability.Income Statement
SmartFinancial's income statement shows a solid performance with a TTM gross profit margin of 110.28% and a net profit margin of 16.08%. The revenue growth rate from the previous year is also strong at 33.34%, indicating robust business expansion. However, the EBIT margin stands at 41.06%, which while healthy, suggests room for operational efficiency improvements. The absence of EBITDA data limits a comprehensive margin analysis.75
Positive
Balance Sheet
The balance sheet reflects a sturdy financial position with a debt-to-equity ratio of 0.09, indicating low leverage and a conservative capital structure. The return on equity (ROE) is 6.68%, which is moderate but could benefit from improved profitability. The equity ratio is 9.96%, suggesting a stable asset base supported by equity, though higher equity ratios are typically preferable in the banking sector.70
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 35.96%, demonstrating improved cash generation. The operating cash flow to net income ratio of 1.46 indicates strong cash conversion from earnings, while the free cash flow to net income ratio of 1.39 is also positive. However, the fluctuations in investing cash flows suggest potential volatility in cash management strategies.68
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 203.25M | 152.41M | 6.38M | 137.34M | 114.10M | 90.60M | Gross Profit |
| 224.12M | 152.41M | 6.38M | 137.34M | 114.10M | 90.60M | EBIT |
| 83.45M | 36.23M | 86.28M | 44.32M | 30.89M | 33.45M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 32.69M | 28.59M | 43.02M | 34.79M | 24.33M | 26.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 317.51M | 470.00M | 750.32M | 1.53B | 697.35M | 362.32M | Total Assets |
| 2.27B | 4.83B | 4.61B | 4.61B | 3.30B | 2.45B | Total Debt |
| 50.42M | 50.10M | 71.79M | 129.51M | 120.55M | 64.70M | Net Debt |
| -65.40M | -244.72M | -194.63M | -915.56M | -361.17M | -119.27M | Total Liabilities |
| 1.99B | 4.37B | 4.18B | 4.18B | 120.55M | 64.70M | Stockholders Equity |
| 283.01M | 459.89M | 432.45M | 429.43M | 357.17M | 312.75M |
| Cash Flow | Free Cash Flow | ||||
| 45.47M | 33.45M | 44.31M | 43.80M | 23.63M | 23.60M | Operating Cash Flow |
| 47.72M | 39.72M | 56.79M | 46.18M | 29.07M | 29.87M | Investing Cash Flow |
| -314.94M | -135.24M | -840.82M | -264.99M | -259.34M | -94.78M | Financing Cash Flow |
| 59.87M | 181.37M | 5.37M | 782.17M | 528.02M | 133.06M |
SmartFinancial Technical Analysis
Negative
30.86
Price Trends
33.52
Negative
33.78
Negative
30.01
Positive
Market Momentum
-0.85
Positive
27.05
Positive
5.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMBK, the sentiment is Negative. The current price of 30.86 is below the 20-day moving average (MA) of 34.04, below the 50-day MA of 33.52, and above the 200-day MA of 30.01, indicating a neutral trend. The MACD of -0.85 indicates Positive momentum. The RSI at 27.05 is Positive, neither overbought nor oversold. The STOCH value of 5.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMBK.
SmartFinancial Risk Analysis
SmartFinancial disclosed 31 risk factors in its most recent earnings report. SmartFinancial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SmartFinancial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.43B | 19.52 | 14.87% | 1.52% | 16.28% | 9.61% | |
72 Outperform | $214.90M | 11.03 | 8.95% | 2.65% | 10.65% | -12.80% | |
72 Outperform | $1.52B | 9.80 | 10.44% | ― | -3.61% | -29.58% | |
68 Neutral | $522.35M | 14.42 | 7.60% | 1.04% | 18.81% | 26.65% | |
68 Neutral | $6.35B | 12.15 | 9.70% | 2.27% | 11.17% | 1.47% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% | |
62 Neutral | $3.14B | 11.10 | 9.69% | 4.00% | 21.10% | -4.20% |
* Financial Sector Average
Performance Comparison
SMBK
SmartFinancial
31.01
10.98
54.82%
BOKF
Bok Financial
100.50
16.10
19.08%
CFFI
C&F Financial
68.47
20.92
44.00%
FULT
Fulton Financial
17.65
3.42
24.03%
CUBI
Customers Bancorp
49.81
1.06
2.17%
SFBS
ServisFirst Bancshares
81.59
20.99
34.64%
SmartFinancial Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -3.89% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong loan and deposit growth, improved net income and revenue, and an expansion in net interest margin. However, there were challenges such as increased noninterest expenses, a decrease in investment services revenue, and a slight decrease in capital ratios. Despite these, the company's strong credit quality and recognition as a great workplace contribute to a positive sentiment.Highlights
Strong Loan and Deposit Growth
Loan growth at a 20% annualized pace for Q4 and 13.4% year-over-year. Deposit growth was approximately 34% annualized quarter-over-quarter.
Net Income and Revenue Increase
Net income for the quarter was $9.6 million or $0.57 per diluted share. Total revenue came in at $46.8 million.
Improved Tangible Book Value
Tangible book value increased to $22.85 per share, over 9% annualized quarter-over-quarter, excluding AOCI movement.
Net Interest Margin Expansion
Net interest margin expanded by 13 basis points to 3.24%.
Strong Credit Quality
Nonperforming loans to total loans at 20 basis points, and net charge-offs to average loans were 2 basis points annualized.
Certified Great Place to Work
Company recognized as a certified Great Place to Work and a regional top workplace for 8 consecutive years.
Lowlights
Slight Increase in Noninterest Expenses
Noninterest expenses slightly increased to over $32 million, attributed to increased incentive compensation and other real estate and loan-related expenses.
Decrease in Investment Services Revenue
Investment services revenue decreased by $500,000 due to decreased volume.
Leverage on Capital Ratios
Consolidated TCE ratio decreased 50 basis points to 7.5% due to capital allocation to high-return lending opportunities.
Challenges in Office Market Exposure
Mentioned challenges in the Nashville office market, including a property sale at an 85% discount.
Company Guidance
During the SmartFinancial Fourth Quarter 2024 Earnings Call, the executives provided detailed guidance and insights into the company's financial performance and expectations for the coming year. Key metrics highlighted included a net income of $9.6 million, or $0.57 per diluted share, and a 9% increase in tangible book value per share, reaching $24.25 excluding AOCI impacts. The company reported a strong balance sheet with a 20% annualized loan growth rate for Q4 and a 13.4% year-over-year increase, alongside a 34% annualized growth in deposits. The net interest margin expanded by 13 basis points to 3.24%, attributed to strategic deposit repositioning and a 7.08% yield on new loans. Nonperforming assets were at an impressively low 19 basis points, indicative of strong credit quality. Looking forward, the company anticipates maintaining mid- to high single-digit loan growth, with a focus on controlling expenses and achieving a quarterly revenue target of $50 million by Q3 2025. The executives also highlighted a favorable liquidity position, a loan-to-deposit ratio of 83%, and a strategic emphasis on operating leverage and profitability.SmartFinancial Corporate Events
Financial Disclosures
SmartFinancial Reports Strong Q4 2024 Performance
Positive
Jan 21, 2025
SmartFinancial reported a strong performance for the fourth quarter of 2024, with a net income of $9.6 million, an increase from both the prior year and the previous quarter. Notable achievements include a 13% year-over-year growth in loans and leases and a net interest margin expansion to 3.24%. The company’s credit quality remained solid, with a decrease in nonperforming assets. SmartFinancial’s leadership expressed confidence in continued profitability and value enhancement for shareholders into 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.