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Smith Douglas Homes Corp. Class A
(NYSE:SDHC)
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Rating:54Neutral
Price Target:
$14.50
▼(-4.98% Downside)
Action:Reiterated
Date:08/07/26
The score is mainly held back by deteriorating profitability (margin compression) and rising leverage, despite improved TTM cash flow. Technicals also lean negative with the stock trading below key moving averages and only modest momentum. These are partially offset by a reasonable P/E valuation and an earnings-call backdrop showing strong order/backlog trends, though near-term margins are guided lower and full-year guidance was withheld.
Positive Factors
Demand: Orders & Backlog
A sustained, sizable increase in net new orders and a growing backlog provide durable revenue visibility over the next several quarters. Higher presales/backlog reduce reliance on speculative inventory, support steady closing cadence, and allow the company to better plan land and labor, improving working-capital predictability.
Negative Factors
Margin Compression
Material and sustained margin declines erode the company's ability to convert revenue into profit and cash. Lower gross and net margins reduce return on invested capital, constrain reinvestment and reserve building, and leave less buffer against a downturn in demand or rising input costs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Demand: Orders & Backlog
A sustained, sizable increase in net new orders and a growing backlog provide durable revenue visibility over the next several quarters. Higher presales/backlog reduce reliance on speculative inventory, support steady closing cadence, and allow the company to better plan land and labor, improving working-capital predictability.
Read all positive factors
Smith Douglas Homes Corp. Class A (SDHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$710.58M
Dividend YieldN/A
Average Volume (3M)80.35K
Price to Earnings (P/E)19.5
Beta (1Y)1.11
Revenue Growth-1.19%
EPS Growth-55.97%
CountryUS
Employees510
SectorReal Estate
Sector Strength53
IndustryResidential Construction
Share Statistics
EPS (TTM)0.72
Shares Outstanding8,392,484
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.50Price Target Upside-4.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.33
Revenue Forecast (FY)$1.06B
Smith Douglas Homes Corp. Class A Business Overview & Revenue Model
Company Description
Smith Douglas Homes Corp. is dedicated to the development, construction, and sale of individual residences throughout the southeastern United States. The company's activities extend to significant metropolitan areas, including Atlanta, Birmingham,...
How the Company Makes Money
Smith Douglas Homes primarily makes money by selling newly constructed single-family homes to retail homebuyers. Its main revenue stream is home sale revenue recognized at the time of closing (when the home is delivered and title transfers to the ...
Smith Douglas Homes Corp. Class A Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 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
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 971.12M | 975.46M | 764.63M | 755.35M | 518.86M |
| Gross Profit | 195.07M | 212.17M | 255.54M | 216.33M | 222.75M | 122.95M |
| EBITDA | 47.69M | 76.64M | 121.21M | 125.92M | 142.31M | 65.72M |
| Net Income | 6.46M | 10.69M | 16.07M | 123.18M | 140.44M | 62.53M |
Balance Sheet | ||||||
| Total Assets | 592.10M | 557.59M | 475.90M | 352.69M | 223.37M | 201.19M |
| Cash, Cash Equivalents and Short-Term Investments | 14.20M | 12.74M | 22.36M | 19.78M | 29.60M | 25.34M |
| Total Debt | 68.71M | 74.15M | 12.07M | 78.98M | 18.39M | 74.41M |
| Total Liabilities | 159.15M | 113.46M | 74.17M | 143.79M | 58.86M | 105.67M |
| Stockholders Equity | 79.46M | 86.73M | 73.63M | 208.90M | 164.51M | 95.52M |
Cash Flow | ||||||
| Free Cash Flow | 33.85M | -36.86M | 15.24M | 74.95M | 131.09M | 30.14M |
| Operating Cash Flow | 37.36M | -31.34M | 19.13M | 76.26M | 132.09M | 30.87M |
| Investing Cash Flow | -3.56M | -6.63M | -4.71M | -76.83M | 361.00K | 847.00K |
| Financing Cash Flow | -36.38M | 28.35M | -11.84M | -9.25M | -128.19M | -38.54M |
Smith Douglas Homes Corp. Class A Technical Analysis
Negative
15.26
Price Trends
14.52
Negative
13.77
Positive
15.72
Negative
Market Momentum
-0.16
Positive
43.07
Neutral
35.63
Neutral
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 15.26 is above the 20-day moving average (MA) of 14.66, above the 50-day MA of 14.52, and below the 200-day MA of 15.72, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.50B | 8.81 | 9.42% | ― | 11.76% | 4.46% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $119.86M | 11.66 | 7.47% | ― | 6.34% | -19.44% | |
65 Neutral | $565.93M | 6.89 | 6.35% | ― | -40.80% | -33.41% | |
54 Neutral | $710.58M | 19.49 | 7.82% | ― | -1.19% | -55.97% | |
51 Neutral | $242.28M | 29.10 | 1.56% | ― | 6.77% | ― | |
51 Neutral | $122.72M | -5.49 | -0.85% | ― | ― | ― |
* Real Estate Sector Average
SDHC
Smith Douglas Homes Corp. Class A
13.98
-6.34
-31.20%
ARL
American Realty Investors
15.00
0.90
6.38%
AXR
Amrep
22.51
1.02
4.75%
FOR
Forestar Group
29.44
2.38
8.80%
FPH
Five Point Holdings
5.16
-0.35
-6.35%
AMBR
Amber International Holding
1.31
-4.03
-75.47%
Smith Douglas Homes Corp. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
Smith Douglas Homes Shareholders Back Board and Auditor
Positive
Jun 10, 2026
On June 4, 2026, Smith Douglas Homes Corp. held its Annual Meeting of Stockholders, at which approximately 99.87% of the company’s outstanding common stock voting power was present in person or by proxy. Shareholders elected eight directors ...
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.