Smith Douglas Homes Corp. Class A (SDHC)
NYSE:SDHC
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Smith Douglas Homes Corp. Class A
(NYSE:SDHC)
Select Model
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Rating:48Neutral
Price Target:
$14.50
▲(0.76% Upside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by weakening financial quality (sharp earnings/margin compression and a swing to negative operating and free cash flow) and a bearish technical setup (price below key moving averages with negative MACD). A moderate P/E provides some support, while the latest earnings call suggests continued near-term margin pressure despite operational progress.
Positive Factors
Scale and Deliveries
Record annual deliveries demonstrate proven production capacity and market penetration. Sustained ability to deliver volume supports operating leverage, spreads fixed costs, and underpins revenue visibility over the next several quarters as backlog converts to closings.
Negative Factors
Margin Compression
A sharp, persistent drop in gross margins materially reduces profitability and return on capital. If margins remain compressed due to pricing and incentive pressure, the spread between selling price and build/land cost will constrain earnings and long-term ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and Deliveries
Record annual deliveries demonstrate proven production capacity and market penetration. Sustained ability to deliver volume supports operating leverage, spreads fixed costs, and underpins revenue visibility over the next several quarters as backlog converts to closings.
Read all positive factors
Smith Douglas Homes Corp. Class A (SDHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$758.92M
Dividend YieldN/A
Average Volume (3M)80.35K
Price to Earnings (P/E)14.1
Beta (1Y)1.16
Revenue Growth10.26%
EPS Growth-73.20%
CountryUS
Employees445
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.39
Shares Outstanding9,051,303
10 Day Avg. Volume84,466
30 Day Avg. Volume80,347
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.74
Price to Sales (P/S)0.16
P/FCF Ratio-4.09
Enterprise Value/Market Cap0.21
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit0.76
Enterprise Value/Ebitda2.16
Forecast
1Y Price Target
$13.13Price Target Upside-8.79% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.45
Revenue Forecast (FY)$986.94M
Smith Douglas Homes Corp. Class A Business Overview & Revenue Model
Company Description
Smith Douglas Homes Corp. engages in the design, construction, and sale of single-family homes in the southeastern United States. The company operates in metropolitan Atlanta, Birmingham, Charlotte, Huntsville, Nashville, Raleigh-Durham, and Houst...
How the Company Makes Money
Smith Douglas Homes primarily makes money by selling newly constructed single-family homes to individual homebuyers. Its main revenue stream is home sales revenue recognized when a home is delivered/closed with the buyer, which typically includes ...
Smith Douglas Homes Corp. Class A Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Negative
The call presented a mix of constructive operational progress and meaningful near-term financial headwinds. Positives include record annual deliveries, expansion of communities and controlled lots, improved build times (notably in Houston), and a conservative balance sheet. Offsetting these strengths are significant margin compression and earnings declines driven by higher incentives, affordability pressures, and a choppy demand environment; Q1 margin guidance remains below recent levels. On balance, the lowlights around profitability and margin trends weigh more heavily than the operational gains.Positive Updates
Record Annual Deliveries
Delivered a company record 2,908 homes in FY2025, a 1% increase year-over-year, demonstrating volume growth despite a challenging demand environment.
Negative Updates
Quarterly Revenue and Margin Pressure
Q4 revenue declined 9% year-over-year to $260 million and home closing gross margin contracted to 19.9% from 25.5% in Q4 2024 (a ~560 basis point decline), reflecting meaningful margin pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Deliveries
Delivered a company record 2,908 homes in FY2025, a 1% increase year-over-year, demonstrating volume growth despite a challenging demand environment.
Read all positive updates
Company Guidance
Smith Douglas guided to first-quarter 2026 closings of 575–625 homes with an average sales price of $330,000–$335,000 and a home-closing gross margin of 17.5%–18%, and said it will not provide full-year guidance given demand variability; management noted Q4/2025 context of 780 closings, $260M revenue, 19.9% closing gross margin (21% adjusted), and incentives averaging ~6.8% of base price, and said Q1 assumptions contemplate a sequential reduction in incentive/contra‑revenue load of roughly 100–150 basis points (including price discounts, closing-cost assistance and lower forward-commitment costs), while highlighting a backlog of 512 homes (avg. $337K, ≈$173M), 100 active communities and ~22,300 controlled lots as supporting metrics.Smith Douglas Homes Corp. Class A Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 971.12M | 975.46M | 764.63M | 755.35M | 518.86M |
| Gross Profit | 212.17M | 255.54M | 216.33M | 222.75M | 122.95M |
| EBITDA | 74.94M | 121.21M | 125.92M | 142.31M | 65.72M |
| Net Income | 10.69M | 16.07M | 123.18M | 140.44M | 62.53M |
Balance Sheet | |||||
| Total Assets | 557.59M | 475.90M | 352.69M | 223.37M | 201.19M |
| Cash, Cash Equivalents and Short-Term Investments | 12.74M | 22.36M | 19.78M | 29.60M | 25.34M |
| Total Debt | 44.08M | 12.07M | 78.98M | 18.39M | 74.41M |
| Total Liabilities | 113.46M | 74.17M | 143.79M | 58.86M | 105.67M |
| Stockholders Equity | 86.73M | 73.63M | 208.90M | 164.51M | 95.52M |
Cash Flow | |||||
| Free Cash Flow | -36.86M | 15.24M | 74.95M | 131.09M | 30.14M |
| Operating Cash Flow | -31.34M | 19.13M | 76.26M | 132.09M | 30.87M |
| Investing Cash Flow | -6.63M | -4.71M | -76.83M | 361.00K | 847.00K |
| Financing Cash Flow | 28.35M | -11.84M | -9.25M | -128.19M | -38.54M |
Smith Douglas Homes Corp. Class A Technical Analysis
Positive
14.39
Price Trends
14.62
Negative
16.97
Negative
17.79
Negative
Market Momentum
<0.01
Negative
54.86
Neutral
36.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDHC, the sentiment is Positive. The current price of 14.39 is above the 20-day moving average (MA) of 13.26, below the 50-day MA of 14.62, and below the 200-day MA of 17.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 36.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDHC.
Smith Douglas Homes Corp. Class A Risk Analysis
Smith Douglas Homes Corp. Class A disclosed 83 risk factors in its most recent earnings report. Smith Douglas Homes Corp. Class A 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
Smith Douglas Homes Corp. Class A Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $148.65M | 8.82 | 9.58% | ― | -27.32% | -15.12% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.36B | 9.71 | 9.82% | ― | 10.13% | -18.11% | |
61 Neutral | $561.41M | 4.25 | 8.87% | ― | -1.52% | 81.35% | |
48 Neutral | $758.92M | 14.11 | 13.13% | ― | 10.26% | -73.20% | |
48 Neutral | $214.53M | 2.08 | -19.15% | ― | -75.38% | ― | |
47 Neutral | $233.88M | 6.63 | 2.58% | ― | -0.58% | ― |
* Real Estate Sector Average
SDHC
Smith Douglas Homes Corp. Class A
14.54
-5.62
-27.88%
ARL
American Realty Investors
14.37
2.00
16.17%
AXR
Amrep
27.98
5.32
23.48%
FOR
Forestar Group
27.33
7.51
37.89%
FPH
Five Point Holdings
5.03
-0.17
-3.27%
AMBR
Amber International Holding
2.42
-7.55
-75.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.