Smith Douglas Homes Corp. Class A (SDHC) AI Stock Analysis

• Market Cap: $891.69M
• Dividend Yield: N/A
• Average Volume (3M): 101.42K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.11
• Revenue Growth: 10.26%
• EPS Growth: -73.20%
• Country: US
• Employees: 445
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.24
• Shares Outstanding: 9,017,638
• 10 Day Avg. Volume: 80,909
• 30 Day Avg. Volume: 101,422
• PEG Ratio: -0.58
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 14.88
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 6.10
• 1Y Price Target: $17.00
• Price Target Upside: -4.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $963.56M

• Rating: 57 Neutral
• Price Target: $18.50 ▲(3.87% Upside)

The overall stock score of 57 reflects significant financial challenges, including declining revenue and cash flow issues, despite strong profitability margins. Technical indicators suggest a neutral trend, while valuation appears reasonable. The earnings call highlighted strategic expansions but also noted profitability challenges.

Positive Factors

Market Expansion

Expanding into new markets like Greenville, Dallas, and the Gulf Coast can drive long-term growth by tapping into new customer bases and increasing market share.

Operational Efficiency

Consistent cycle times indicate strong operational efficiency, which can enhance profitability by reducing costs and improving project turnaround.

Net Orders Growth

A 15% increase in net orders suggests strong demand and potential revenue growth, supporting long-term business sustainability and market presence.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in market demand or pricing power, which could impact long-term financial health and growth prospects.

Gross Margin Decline

A decrease in gross margins suggests increased cost pressures and reduced pricing power, which can affect profitability and competitive positioning over time.

Increased Debt Levels

Higher debt levels can strain cash flow and limit financial flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

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 Houston. It also provides closing, escrow, and title insurance services. The company was founded in 2008 and is headquartered in Woodstock, Georgia.

How the Company Makes Money

Smith Douglas Homes Corp. generates revenue primarily through the sale of residential properties, which includes the construction and sale of new homes. The company profits by acquiring land, developing it into residential communities, and building homes that meet the demands of local markets. Key revenue streams include home sales, which are driven by market demand and pricing strategies, as well as potential ancillary services such as mortgage origination and home warranty offerings. SDHC may also benefit from partnerships with local contractors and suppliers, which can enhance its operational efficiency and cost management, ultimately contributing to its profitability.

Smith Douglas Homes Corp. Class A Financial Statement Overview

Summary

Smith Douglas Homes Corp. faces significant challenges with declining revenue and cash flow issues in the TTM period. While profitability margins remain strong, the increased debt levels and reduced return on equity suggest potential financial strain. The company needs to address its cash flow and revenue growth to stabilize its financial position.

Income Statement

The income statement shows a significant decline in revenue growth rate of -71.65% in the TTM period, indicating a major downturn. However, the company maintains a strong gross profit margin of 81.31% and a net profit margin of 19.29% in the TTM, reflecting efficient cost management. Historical data shows fluctuating margins with a peak in 2022, but recent trends suggest declining profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.65 in the TTM, which is higher than previous years, indicating increased reliance on debt. The return on equity has decreased to 19.40% in the TTM from a high of 85.37% in 2022, suggesting reduced profitability for shareholders. The equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow in the TTM, indicating liquidity challenges. The free cash flow to net income ratio is positive at 1.13, but the negative operating cash flow coverage ratio of -1.68 highlights potential cash management issues. Historical data shows a decline in free cash flow growth, raising concerns about future cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	287.49M	975.46M	764.63M	755.35M	518.86M
Gross Profit	233.77M	255.54M	216.33M	222.75M	122.95M
EBITDA	89.40M	121.21M	125.92M	142.31M	65.72M
Net Income	25.37M	16.07M	123.18M	140.44M	62.53M
Balance Sheet
Total Assets	571.56M	475.90M	352.69M	223.37M	201.19M
Cash, Cash Equivalents and Short-Term Investments	14.78M	22.36M	19.78M	29.60M	25.34M
Total Debt	55.79M	12.07M	78.98M	18.39M	74.41M
Total Liabilities	145.12M	74.17M	143.79M	58.86M	105.67M
Stockholders Equity	82.18M	73.63M	208.90M	164.51M	95.52M
Cash Flow
Free Cash Flow	-40.80M	15.24M	74.95M	131.09M	30.14M
Operating Cash Flow	-35.62M	19.13M	76.26M	132.09M	30.87M
Investing Cash Flow	-6.50M	-4.71M	-76.83M	361.00K	847.00K
Financing Cash Flow	-5.90M	-11.84M	-9.25M	-128.19M	-38.54M

Smith Douglas Homes Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 17.81 is above the 20-day moving average (MA) of 17.24, above the 50-day MA of 17.71, and below the 200-day MA of 19.50, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.54 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPH	77 Outperform	$639.03M	4.64	12.52%	―	-1.52%	81.35%
FOR	70 Outperform	$1.28B	7.67	9.99%	―	10.13%	-18.11%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SDHC	57 Neutral	$891.69M	13.78	14.98%	―	10.26%	-73.20%
ARL	53 Neutral	$252.94M	-21.38	0.95%	―	-0.58%	―

Smith Douglas Homes Corp. Class A Corporate Events

Smith Douglas Homes Reports Q3 2025 Financial Results

Smith Douglas Homes Corp., a prominent homebuilder in the Southern United States, focuses on providing affordable-luxury homes for entry-level and empty-nest buyers. In its third quarter of 2025, the company reported a slight decline in home closings and revenue compared to the previous year, with home closings down by 3% and revenue decreasing by 6% to $262 million. Despite these declines, the company saw a 15% increase in net new home orders, indicating strong demand in its target markets.

Smith Douglas Homes Q3 Earnings: Resilience Amid Challenges

Smith Douglas Homes Corp. Class A recently held its third-quarter earnings call, revealing a mixed sentiment. The company showcased resilience through strategic market expansions and operational efficiency, yet faced challenges with decreased home closings, declining gross margins, and increased cost pressures, impacting overall profitability.

Smith Douglas Homes’ Earnings Call: Mixed Sentiment and Strategic Expansion

Smith Douglas Homes Corp. Class A recently held its earnings call, showcasing a mixed sentiment. The company highlighted strong operational performance, expansion into new markets, and improved cycle times, which are positive developments. However, these were tempered by challenges such as declining gross margins, increased SG&A expenses, and a challenging sales environment. Overall, the sentiment was balanced with both positive and negative aspects present.

Smith Douglas Homes Reports Modest Q2 Growth

Smith Douglas Homes Corp., a prominent homebuilder in the United States, specializes in providing affordable-luxury homes primarily for entry-level and empty-nest buyers across various metro areas.