SANARA MEDTECH INC (SMTI) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SMTI - US79957L1008 - Common Stock

21.38 USD

+0.58 (+2.79%)

Last: 1/28/2026, 8:16:10 PM

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to SMTI. SMTI was compared to 184 industry peers in the Health Care Equipment & Supplies industry. SMTI may be in some trouble as it scores bad on both profitability and health. SMTI has a decent growth rate and is not valued too expensively.

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1. Profitability

1.1 Basic Checks

In the past year SMTI has reported negative net income.
In the past year SMTI had a positive cash flow from operations.
SMTI had negative earnings in each of the past 5 years.
In the past 5 years SMTI always reported negative operating cash flow.

1.2 Ratios

SMTI's Return On Assets of -52.74% is on the low side compared to the rest of the industry. SMTI is outperformed by 66.85% of its industry peers.
SMTI has a worse Return On Equity (-609.72%) than 83.15% of its industry peers.
With a decent Return On Invested Capital value of 2.18%, SMTI is doing good in the industry, outperforming 67.93% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-52.74%
ROE	-609.72%
ROIC	2.18%

ROA(3y)-9.93%

ROA(5y)-19.18%

ROE(3y)-17.7%

ROE(5y)-29.97%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Operating Margin, with a value of 1.46%, SMTI is in the better half of the industry, outperforming 65.76% of the companies in the same industry.
SMTI has a better Gross Margin (92.25%) than 97.83% of its industry peers.
SMTI's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	1.46%
PM (TTM)	N/A
GM	92.25%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.07%

GM growth 5Y0.2%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SMTI is destroying value.
The number of shares outstanding for SMTI has been increased compared to 1 year ago.
Compared to 5 years ago, SMTI has more shares outstanding
The debt/assets ratio for SMTI is higher compared to a year ago.

2.2 Solvency

SMTI has an Altman-Z score of 2.05. This is not the best score and indicates that SMTI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.05, SMTI is in the better half of the industry, outperforming 61.41% of the companies in the same industry.
A Debt/Equity ratio of 7.33 is on the high side and indicates that SMTI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.33, SMTI is doing worse than 85.87% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	7.33
Debt/FCF	N/A
Altman-Z	2.05

ROIC/WACC0.22

WACC10.1%

2.3 Liquidity

SMTI has a Current Ratio of 1.80. This is a normal value and indicates that SMTI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.80, SMTI is not doing good in the industry: 65.76% of the companies in the same industry are doing better.
SMTI has a Quick Ratio of 1.60. This is a normal value and indicates that SMTI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.60, SMTI perfoms like the industry average, outperforming 45.11% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.8
Quick Ratio	1.6

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SMTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.06%, which is quite impressive.
Looking at the last year, SMTI shows a very strong growth in Revenue. The Revenue has grown by 30.55%.
SMTI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.08% yearly.

EPS 1Y (TTM)26.06%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%126.47%

Revenue 1Y (TTM)30.55%

Revenue growth 3Y53.13%

Revenue growth 5Y49.08%

Sales Q2Q%21.51%

3.2 Future

SMTI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.78% yearly.
The Revenue is expected to grow by 15.94% on average over the next years. This is quite good.

EPS Next Y117%

EPS Next 2Y76.21%

EPS Next 3Y60.78%

EPS Next 5YN/A

Revenue Next Year19.89%

Revenue Next 2Y18.28%

Revenue Next 3Y15.94%

Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

SMTI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
SMTI is valuated correctly with a Price/Forward Earnings ratio of 16.97.
Based on the Price/Forward Earnings ratio, SMTI is valued cheaply inside the industry as 85.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.83. SMTI is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	16.97

4.2 Price Multiples

69.57% of the companies in the same industry are more expensive than SMTI, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	34.71

4.3 Compensation for Growth

SMTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SMTI's earnings are expected to grow with 60.78% in the coming years. This may justify a more expensive valuation.