Smith Douglas Homes Corp. Class A (SDHC)
NYSE:SDHC
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Smith Douglas Homes Corp. Class A
(NYSE:SDHC)
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Rating:46Neutral
Price Target:
$11.50
▼(-20.08% Downside)
Action:Reiterated
Date:05/10/26
The score is held back primarily by weakening financial performance—especially negative free cash flow and compressed margins—along with a technically weak downtrend. A high P/E further limits upside, partly offset by earnings-call positives around orders/backlog, community expansion, and liquidity despite near-term margin headwinds and uncertain guidance.
Positive Factors
Strong order volume & backlog
A record 981 net new orders (+28% y/y) and a backlog of 869 homes provide multi-month revenue visibility and reduce short‑term demand risk. Durable order momentum supports steadier closing cadence, helps plan supply/land purchases, and gives the company room to scale operations profitably as markets normalize.
Negative Factors
Weak cash generation
Trailing cash conversion is weak: modest operating cash and negative free cash flow show that reported profits are not reliably turning into excess cash. In homebuilding, sustained negative FCF heightens reliance on credit lines, constrains land buys and returns to shareholders, and raises vulnerability if closings slow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong order volume & backlog
A record 981 net new orders (+28% y/y) and a backlog of 869 homes provide multi-month revenue visibility and reduce short‑term demand risk. Durable order momentum supports steadier closing cadence, helps plan supply/land purchases, and gives the company room to scale operations profitably as markets normalize.
Read all positive factors
Smith Douglas Homes Corp. Class A (SDHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$607.37M
Dividend YieldN/A
Average Volume (3M)80.35K
Price to Earnings (P/E)12.6
Beta (1Y)1.10
Revenue Growth-5.75%
EPS Growth-46.55%
CountryUS
Employees445
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.15
Shares Outstanding8,347,257
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 Cap0.23
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda2.32
Forecast
1Y Price Target
$13.13Price Target Upside-8.79% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.51
Revenue Forecast (FY)$1.04B
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. Revenue is recognized when a home sale closes (i.e., when control of the home transfers to the buyer), with the sales price repres...
Smith Douglas Homes Corp. Class A Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong operational execution (record orders, closings at the top of guidance, community expansion, quick build times and healthy liquidity) but notable margin and profitability pressures driven by elevated incentives/forward commitment costs, higher lot cost basis (+300 bps), and an expected sequential margin decline into Q2. Adjusted net income dropped materially year-over-year, and management withheld full-year guidance due to macro uncertainty. Overall the company appears to be growing and scaling market share while sacrificing near-term margin to maintain pace.Positive Updates
Strong Order Volume and Record Quarterly Orders
Generated 981 net new orders, up 28% year-over-year and a new quarterly record for the company, signaling demand recovery and effective price discovery.
Negative Updates
Significant Decline in Adjusted Net Income
Adjusted net income fell to $3.2 million for the quarter versus $14.7 million in the prior-year period, reflecting meaningful year-over-year profit compression.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Order Volume and Record Quarterly Orders
Generated 981 net new orders, up 28% year-over-year and a new quarterly record for the company, signaling demand recovery and effective price discovery.
Read all positive updates
Company Guidance
Management guided Q2 to 725–800 home closings with an average sales price of $325,000–$330,000 and gross margin of 17.0%–17.5%, and said they are not providing full‑year guidance due to demand variability; that outlook follows Q1 results of 624 closings, $206.4M revenue, $331k ASP, GAAP home‑closing gross margin of 19.6% (adjusted 20.3%), 981 net new orders (+28% y/y), 869 homes in backlog at a $332k ASP plus 42 reservations, $28M cash, $68.5M total debt with ~ $195M revolver availability, debt‑to‑book capitalization of 13.6% (net debt/book 8.5%), 108 active communities (+24% y/y), 57‑day average build time, ~$10M of share repurchases at an average $13.28/share, and Q1 headwinds noted as ~730 bps of closing costs/price discounts/forward commitment costs and roughly +300 bps higher lot costs y/y (incentives expected roughly flat sequentially).Smith Douglas Homes Corp. Class A Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
60
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 952.84M | 971.12M | 975.46M | 764.63M | 755.35M | 518.86M |
| Gross Profit | 199.09M | 212.17M | 255.54M | 216.33M | 222.75M | 122.95M |
| EBITDA | 60.46M | 74.94M | 121.21M | 125.92M | 142.31M | 65.72M |
| Net Income | 8.58M | 10.69M | 16.07M | 123.18M | 140.44M | 62.53M |
Balance Sheet | ||||||
| Total Assets | 600.19M | 557.59M | 475.90M | 352.69M | 223.37M | 201.19M |
| Cash, Cash Equivalents and Short-Term Investments | 27.99M | 12.74M | 22.36M | 19.78M | 29.60M | 25.34M |
| Total Debt | 68.50M | 44.08M | 12.07M | 78.98M | 18.39M | 74.41M |
| Total Liabilities | 164.30M | 113.46M | 74.17M | 143.79M | 58.86M | 105.67M |
| Stockholders Equity | 82.06M | 86.73M | 73.63M | 208.90M | 164.51M | 95.52M |
Cash Flow | ||||||
| Free Cash Flow | -1.12M | -36.86M | 15.24M | 74.95M | 131.09M | 30.14M |
| Operating Cash Flow | 3.91M | -31.34M | 19.13M | 76.26M | 132.09M | 30.87M |
| Investing Cash Flow | -5.09M | -6.63M | -4.71M | -76.83M | 361.00K | 847.00K |
| Financing Cash Flow | 16.52M | 28.35M | -11.84M | -9.25M | -128.19M | -38.54M |
Smith Douglas Homes Corp. Class A Technical Analysis
Negative
14.39
Price Trends
12.95
Negative
15.06
Negative
16.76
Negative
Market Momentum
-0.41
Negative
44.22
Neutral
82.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDHC, the sentiment is Negative. The current price of 14.39 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 12.95, and below the 200-day MA of 16.76, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 82.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.40B | 8.37 | 9.49% | ― | 16.12% | -0.91% | |
75 Outperform | $132.74M | 10.33 | 9.58% | ― | -8.70% | -0.61% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $554.81M | 7.91 | 5.56% | ― | -54.20% | -50.02% | |
53 Neutral | $242.28M | 19.88 | 1.99% | ― | 6.16% | ― | |
51 Neutral | $160.27M | -7.02 | -0.85% | ― | ― | ― | |
46 Neutral | $607.37M | 12.62 | 10.37% | ― | -5.75% | -46.55% |
* Real Estate Sector Average
SDHC
Smith Douglas Homes Corp. Class A
11.96
-6.77
-36.15%
ARL
American Realty Investors
15.00
0.56
3.88%
AXR
Amrep
25.02
5.06
25.35%
FOR
Forestar Group
27.47
8.37
43.82%
FPH
Five Point Holdings
5.03
-0.40
-7.37%
AMBR
Amber International Holding
1.70
-7.51
-81.54%
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.