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Sanara MedTech Inc. (SMTI) Fundamental Analysis & AI Grade 2026

SMTI Nasdaq Orthopedic, Prosthetic & Surgical Appliances & Supplies TX CIK: 0000714256
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
82% Confidence
N/A
D
82% Conf
Pending
Analysis scheduled

📊 SMTI Key Takeaways

Revenue: $27.8M
Net Margin: 1.7%
Free Cash Flow: $-2.5M
Current Ratio: 2.28x
Debt/Equity: 6.58x
EPS: $0.05
AI Grade: D with 82% confidence
Sanara MedTech Inc. (SMTI) receives a D fundamental grade with 82% confidence from our AI analysis based on SEC 10-K filings. With revenue of $27.8M, net profit margin of 1.7%, and return on equity (ROE) of 6.5%, Sanara MedTech Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete SMTI stock analysis for 2026.

Is Sanara MedTech Inc. (SMTI) a Good Investment?

Claude

Strong revenue growth (19% YoY) and exceptional gross margins (93.1%) are overshadowed by severe financial stress: negative operating cash flow (-$2.5M) despite positive net income signals poor earnings quality, while extreme leverage (6.58x debt/equity) with weak interest coverage (1.5x) creates acute default risk. The company's 1.7% net margin provides insufficient buffer to service $46.2M debt against only $7.0M equity.

Sanara MedTech Inc. Key Strengths (SMTI)

Claude
  • + Revenue growth of 19% YoY demonstrates market demand
  • + Gross margin of 93.1% indicates strong pricing power and product quality
  • + Current ratio of 2.28x and $13.6M cash provides near-term liquidity buffer

SMTI Stock Risks: Sanara MedTech Inc. Investment Risks

Claude
  • ! Negative operating cash flow (-$2.5M) despite positive net income indicates severe earnings quality deterioration and poor cash conversion
  • ! Extreme leverage with 6.58x debt/equity ratio and only 1.5x interest coverage creates imminent default risk if operations deteriorate further
  • ! Divergence between accounting profitability and cash generation is unsustainable; at -$2.5M annual burn, cash reserves deplete in 5-6 years

Key Metrics to Watch

Claude
  • * Operating cash flow trend - must turn positive to validate sustainability
  • * Interest coverage ratio - currently critical; needs improvement above 2.5x
  • * Debt reduction progress and refinancing timeline - leverage must decline to healthy levels

Sanara MedTech Inc. (SMTI) Financial Metrics & Key Ratios

Revenue
$27.8M
Net Income
$459.0K
EPS (Diluted)
$0.05
Free Cash Flow
$-2.5M
Total Assets
$69.3M
Cash Position
$13.6M

💡 AI Analyst Insight

Strong liquidity with a 2.28x current ratio provides a solid financial cushion.

SMTI Profit Margin, ROE & Profitability Analysis

Gross Margin 93.1%
Operating Margin 9.5%
Net Margin 1.7%
ROE 6.5%
ROA 0.7%
FCF Margin -9.0%

SMTI vs Healthcare Sector: How Sanara MedTech Inc. Compares

How Sanara MedTech Inc. compares to Healthcare sector averages

Net Margin
SMTI 1.7%
vs
Sector Avg 12.0%
SMTI Sector
ROE
SMTI 6.5%
vs
Sector Avg 15.0%
SMTI Sector
Current Ratio
SMTI 2.3x
vs
Sector Avg 2.0x
SMTI Sector
Debt/Equity
SMTI 6.6x
vs
Sector Avg 0.6x
SMTI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Sanara MedTech Inc. Stock Overvalued? SMTI Valuation Analysis 2026

Based on fundamental analysis, Sanara MedTech Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.

Return on Equity
6.5%
Sector avg: 15%
Net Profit Margin
1.7%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
6.58x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Sanara MedTech Inc. Balance Sheet: SMTI Debt, Cash & Liquidity

Current Ratio
2.28x
Quick Ratio
2.05x
Debt/Equity
6.58x
Debt/Assets
89.9%
Interest Coverage
1.47x
Long-term Debt
$46.2M

SMTI Revenue & Earnings Growth: 5-Year Financial Trend

SMTI 5-year financial data: Year 2021: Revenue $24.1M, Net Income -$4.4M, EPS N/A. Year 2022: Revenue $45.8M, Net Income -$7.9M, EPS N/A. Year 2023: Revenue $65.0M, Net Income -$7.9M, EPS $-1.00. Year 2024: Revenue $86.7M, Net Income -$4.3M, EPS $-0.52. Year 2025: Revenue $103.1M, Net Income -$9.7M, EPS $-1.14.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Sanara MedTech Inc.'s revenue has grown significantly by 327% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.14 indicates the company is currently unprofitable.

SMTI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-9.0%
Free cash flow / Revenue

SMTI Quarterly Earnings & Performance

Quarterly financial performance data for Sanara MedTech Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $23.4M $459.0K $0.05
Q3 2025 $21.7M -$2.9M $-0.34
Q2 2025 $20.2M -$2.0M $-0.23
Q1 2025 $18.5M -$1.8M $-0.21
Q3 2024 $16.0M -$1.1M $-0.13
Q2 2024 $15.8M -$1.8M $-0.22
Q1 2024 $15.5M -$1.2M $-0.14
Q3 2023 $13.0M -$1.1M $-0.13

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Sanara MedTech Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$2.5M
Cash generated from operations
Capital Expenditures
$43.8K
Investment in assets
Dividends Paid
$200.0K
Returned to shareholders

SMTI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Sanara MedTech Inc. (CIK: 0000714256)

📋 Recent SEC Filings

Date Form Document Action
May 18, 2026 4 xslF345X06/ownership.xml View →
May 12, 2026 10-Q form10-q.htm View →
May 11, 2026 8-K form8-k.htm View →
Apr 17, 2026 DEF 14A formdef14a.htm View →
Apr 16, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about SMTI

What is the AI rating for SMTI?

Sanara MedTech Inc. (SMTI) has an AI grade of D with 82% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SMTI's key strengths?

Claude: Revenue growth of 19% YoY demonstrates market demand. Gross margin of 93.1% indicates strong pricing power and product quality.

What are the risks of investing in SMTI?

Claude: Negative operating cash flow (-$2.5M) despite positive net income indicates severe earnings quality deterioration and poor cash conversion. Extreme leverage with 6.58x debt/equity ratio and only 1.5x interest coverage creates imminent default risk if operations deteriorate further.

What is SMTI's revenue and growth?

Sanara MedTech Inc. reported revenue of $27.8M.

Does SMTI pay dividends?

Sanara MedTech Inc. pays dividends, with $0.2M distributed to shareholders in the trailing twelve months.

Where can I find SMTI SEC filings?

Official SEC filings for Sanara MedTech Inc. (CIK: 0000714256) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SMTI's EPS?

Sanara MedTech Inc. has a diluted EPS of $0.05.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SMTI's fundamental grade?

Based on our AI fundamental analysis in May 2026, Sanara MedTech Inc. has a D grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SMTI stock overvalued or undervalued?

Valuation metrics for SMTI: ROE of 6.5% (sector avg: 15%), net margin of 1.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is SMTI's AI grade for 2026?

Our dual AI analysis gives Sanara MedTech Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SMTI's free cash flow?

Sanara MedTech Inc.'s operating cash flow is $-2.5M, with capital expenditures of $43.8K. FCF margin is -9.0%.

How does SMTI compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin 1.7% (avg: 12%), ROE 6.5% (avg: 15%), current ratio 2.28 (avg: 2).

Is Sanara MedTech Inc. carrying too much debt?

SMTI has a debt-to-equity ratio of 6.58x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 2.28 suggests adequate short-term liquidity.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-03-31 | Powered by Claude AI