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:52Neutral
Price Target:
$13.50
▼(-6.18% Downside)
Action:Reiterated
Date:06/11/26
The score is held back primarily by weakening profitability trends and negative free cash flow alongside rising leverage. Offsetting factors include reasonably attractive valuation (P/E ~14) and a mixed-but-constructive earnings call that showed strong order/backlog momentum and solid liquidity, though near-term margins are guided lower and full-year guidance was withheld.
Positive Factors
Order & Backlog Momentum
A sizable, growing backlog and record orders increase near-term revenue visibility and reduce reliance on speculative inventory. Durable presales support steady closings, enable smoother production planning, and provide a base for scaling communities without depending on spot-market demand.
Negative Factors
Margin Compression
Sustained margin pressure erodes cash flow generation and return on invested capital. Elevated incentives, discounts and rising lot costs compress unit economics, limiting the company's ability to self-fund growth and making profitability more sensitive to any demand softness or cost inflation.
Read all positive and negative factors
Positive Factors
Negative Factors
Order & Backlog Momentum
A sizable, growing backlog and record orders increase near-term revenue visibility and reduce reliance on speculative inventory. Durable presales support steady closings, enable smoother production planning, and provide a base for scaling communities without depending on spot-market demand.
Read all positive factors
Smith Douglas Homes Corp. Class A (SDHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$675.92M
Dividend YieldN/A
Average Volume (3M)80.35K
Price to Earnings (P/E)13.9
Beta (1Y)1.06
Revenue Growth-5.75%
EPS Growth-46.55%
CountryUS
Employees445
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.95
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/Revenue0.16
Enterprise Value/Gross Profit0.77
Enterprise Value/Ebitda2.47
Forecast
1Y Price Target
$13.13Price Target Upside-8.79% Downside
Rating ConsensusHold
Number of Analyst Covering4
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. 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 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 | 61.95M | 76.64M | 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 | 70.39M | 46.10M | 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
Neutral
14.39
Price Trends
13.07
Positive
14.09
Negative
16.25
Negative
Market Momentum
0.24
Negative
52.99
Neutral
45.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDHC, the sentiment is Neutral. The current price of 14.39 is above the 20-day moving average (MA) of 12.94, above the 50-day MA of 13.07, and below the 200-day MA of 16.25, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 45.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $1.48B | 8.93 | 9.49% | ― | 16.12% | -0.91% | |
75 Outperform | $137.99M | 10.92 | 9.58% | ― | -8.70% | -0.61% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $550.40M | 7.89 | 5.56% | ― | -54.20% | -50.02% | |
53 Neutral | $262.31M | 21.37 | 1.99% | ― | 6.16% | ― | |
52 Neutral | $675.92M | 13.94 | 10.37% | ― | -5.75% | -46.55% | |
51 Neutral | $139.59M | -6.50 | -0.85% | ― | ― | ― |
* Real Estate Sector Average
SDHC
Smith Douglas Homes Corp. Class A
13.24
-5.16
-28.04%
ARL
American Realty Investors
16.20
1.34
9.02%
AXR
Amrep
26.42
4.28
19.33%
FOR
Forestar Group
29.38
9.08
44.73%
FPH
Five Point Holdings
5.10
-0.69
-11.92%
AMBR
Amber International Holding
1.55
-9.45
-85.91%
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.