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

• Market Cap: $765.12M
• Dividend Yield: N/A
• Average Volume (3M): 85.97K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.05
• Revenue Growth: 28.67%
• EPS Growth: -18.20%
• Country: US
• Employees: 445
• Sector: General
• Sector Strength: N/A
• Industry: Real Estate - Development
• EPS (TTM): 0.30
• Shares Outstanding: 8,991,378
• 10 Day Avg. Volume: 61,970
• 30 Day Avg. Volume: 85,966
• PEG Ratio: -4.90
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -531.07
• Enterprise Value/Market Cap: 7.55
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 22.25
• Enterprise Value/Ebitda: 12.12
• 1Y Price Target: $18.17
• Price Target Upside: -6.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: $20.50 ▲(5.94%Upside)

Smith Douglas Homes Corp. Class A shows strong operational efficiency and governance, with a reasonable valuation. However, significant revenue decline, mixed technical signals, and challenges in cost management and market conditions limit the upside potential.

Positive Factors

Earnings

SDHC's Q4 featured solid closings that were ahead of the guided range, indicating strong performance.

Financial Performance

SDHC's metrics, including balance sheet and ROE, are favorable compared to peers, showcasing strong financial health.

Negative Factors

Backlog

The backlog at year-end was down 24% year-over-year, highlighting a shrinking trend in the industry.

Cost Pressures

Smith Douglas Homes faces headwinds from cost inflation and pressure on net prices due to higher mortgage rates.

Order Trends

Orders missed estimates, reflecting potential challenges in sustaining order momentum.

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. makes money through the construction and sale of residential homes. The company's primary revenue stream comes from the sale of single-family homes to individual buyers. By strategically selecting land in growing markets and using cost-effective building practices, Smith Douglas Homes can offer competitively priced homes. The company may also generate revenue from partnerships with land developers and real estate agents, which help facilitate the sale of homes. Additionally, Smith Douglas Homes may offer financing options or collaborate with mortgage lenders to assist buyers in purchasing their homes, potentially earning fees or commissions from these services.

Smith Douglas Homes Corp. Class A Financial Statement Overview

Summary

Smith Douglas Homes Corp. Class A shows strong profit margins and improved leverage ratios, indicating operational efficiency and reduced financial risk. However, the steep decline in revenue and cash flows from 2023 to 2024 is concerning, suggesting potential challenges in market conditions or operational strategy. The company must focus on revenue growth to complement its profitability and leverage position.

Income Statement

The company's revenue has declined significantly from 2023 to 2024, dropping by over 66%. Despite this, the gross profit margin remains robust at 100% in 2024, suggesting effective cost management. However, the net profit margin dropped from 16% to approximately 44%, indicating increased profitability relative to the reduced revenue. The EBIT and EBITDA margins improved, reflecting efficient operations. Overall, while the margins are strong, the sharp revenue decline is a concern.

Balance Sheet

The company's debt-to-equity ratio improved significantly from 0.37 in 2023 to 0.04 in 2024, indicating a much lower reliance on debt. The equity ratio also improved from 0.59 to 0.15, showing a stronger equity position. However, the absolute decrease in stockholders' equity is a notable concern. Overall, the balance sheet demonstrates improved leverage and equity stability, but the reduction in total equity warrants attention.

Cash Flow

The operating cash flow has decreased from 2023 to 2024, but the company still maintains a positive free cash flow. The free cash flow to net income ratio improved, suggesting better cash conversion efficiency. However, the overall decrease in cash flows needs to be monitored. The cash flow management appears stable, with effective capital expenditure control, but reduced cash generation is a potential risk.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	975.46M	764.63M	755.35M	518.86M
Gross Profit	255.54M	216.33M	222.75M	122.95M
EBITDA	121.21M	124.97M	140.35M	65.72M
Net Income	16.07M	123.18M	140.44M	62.53M
Balance Sheet
Total Assets	475.90M	352.69M	223.37M	201.19M
Cash, Cash Equivalents and Short-Term Investments	22.36M	19.78M	29.60M	25.34M
Total Debt	12.07M	78.40M	18.39M	74.41M
Total Liabilities	74.17M	143.79M	58.86M	105.67M
Stockholders Equity	73.63M	208.90M	164.51M	95.52M
Cash Flow
Free Cash Flow	15.24M	74.95M	131.09M	30.14M
Operating Cash Flow	19.13M	76.26M	132.09M	30.87M
Investing Cash Flow	-4.71M	-76.83M	361.00K	847.00K
Financing Cash Flow	-11.84M	-9.25M	-128.19M	-38.54M

Smith Douglas Homes Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 19.35 is below the 20-day moving average (MA) of 19.60, above the 50-day MA of 19.08, and below the 200-day MA of 24.74, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPH	81 Outperform	$645.44M	4.81	12.27%	―	11.66%	78.44%
FOR	77 Outperform	$1.11B	6.62	10.81%	―	-5.60%	-17.86%
SDHC	64 Neutral	$765.12M	10.88	23.11%	―	28.67%	-18.20%
LSEA	61 Neutral	$411.79M	42.30	1.50%	―	24.15%	-60.70%
Sector *	56 Neutral	$5.90B	21.64	-28.61%	5.74%	10.78%	-34.04%
ARL	52 Neutral	$202.22M	―	-2.20%	―	-6.48%	-592.10%
XIN	―	$14.76M	0.42		―	―	―

Smith Douglas Homes Corp. Class A Corporate Events

Smith Douglas Homes Corp. Holds Annual Stockholders Meeting

On June 5, 2025, Smith Douglas Homes Corp. held its Annual Meeting of Stockholders, where a significant majority of the company’s common stock was represented. During the meeting, all nominated directors were elected, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025, reflecting strong shareholder support for the company’s governance and financial oversight.

The most recent analyst rating on (SDHC) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Smith Douglas Homes Corp. Class A stock, see the SDHC Stock Forecast page.

Smith Douglas Homes Announces $50M Stock Buyback Plan

On May 28, 2025, Smith Douglas Homes Corp. announced a stock repurchase program for up to $50 million of its Class A common stock, reflecting the Board’s belief in the company’s undervalued share price and commitment to shareholder value. The program allows for flexible repurchase methods and is funded through existing cash and future cash flows, with no obligation to repurchase a specific amount and can be modified or discontinued at any time.

The most recent analyst rating on (SDHC) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Smith Douglas Homes Corp. Class A stock, see the SDHC Stock Forecast page.

Smith Douglas Homes Amends Credit Agreement with Wells Fargo

On May 15, 2025, Smith Douglas Holdings LLC and its subsidiaries amended their existing credit agreement with Wells Fargo Bank and other financial institutions. The amendment increased the total revolving commitments to $325 million, extended the loan maturity date to May 15, 2029, and revised financial covenants, enhancing borrowing flexibility and potentially impacting the company’s financial operations and market positioning.

The most recent analyst rating on (SDHC) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Smith Douglas Homes Corp. Class A stock, see the SDHC Stock Forecast page.