Smith Douglas Homes Corp. (SDHC) stock analysis

SDHCNYSEOperative BuildersFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 4, 2026Score 2/3015% below fair value

$9.05−0.20 (-2.16%)

Close on Nov 12, 2026Market cap $460.00MP/E 16.2Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Weak2 of 30 checks passed

Smith Douglas Homes passes 2 of the 30 checks behind our score; 20 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 1/6
Growth: 1/6
Past performance: 0/6
Financial health: 0/6
Dividend: 0/6

What stands out

Trading below fair value
The share price of $9.25 is below our fair value estimate of $10.90.
Growing faster than the industry
Revenue grew 0.4% over the last twelve months; the Operative Builders median is -7.3%.

What to watch

Margin of safety under 20%
The price is 15.1% below fair value, less than the 20% cushion we look for.
Bankruptcy risk in the grey zone
The Altman Z-score is 1.89; above 3 is the safe zone and below 1.8 the distress zone.
P/E above the industry
Smith Douglas Homes's P/E of 16.5 is above the Operative Builders median of 14.1.
P/B above the industry
Smith Douglas Homes's price-to-book of 1.00 is above the Operative Builders median of 1.00.

Valuation1/6

P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Smith Douglas Homes's P/E of 16.5 is above the Operative Builders median of 14.1.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Smith Douglas Homes's price-to-book of 1.00 is above the Operative Builders median of 1.00.
Trading below fair value
The share price of $9.25 is below our fair value estimate of $10.90.
Margin of safety under 20%
The price is 15.1% below fair value, less than the 20% cushion we look for.

Growth1/6

Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 0.4% over the last twelve months; the Operative Builders median is -7.3%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 18.2% over the last twelve months, against 23.4% a year earlier.

Past performance0/6

Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity below the industry
Smith Douglas Homes's return on equity of 6.0% is below the Operative Builders median of 10.7%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin below the industry
Smith Douglas Homes's net margin of 0.5% is below the Operative Builders median of 4.3%.

Financial health0/6

Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest coverage
Interest expense is not reported separately.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Bankruptcy risk in the grey zone
The Altman Z-score is 1.89; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Smith Douglas Homes has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$10.90

The share price is 15% below this estimate.

20%+ below

Near fair value

20%+ above

$9.25Price$10.90Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	14.1×	–	14.1×	$7.91	62%
P/B	1.0×	–	1.0×	$9.25	15%
Earnings power	10.2% cost of equity	–	–	$19.96	23%
Fair value				$10.90	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/B at month end
Operative Builders median 1.0

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day: $460.92K
Value traded per 1% price move: $202.55K

Downside

High risk

Typical loss in a bad month: 30.8%
Volatility (annualized): 56%
Sharpe ratio, 1 year: -0.91
Beta to the S&P 500 (5Y): 1.05

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2022 to 2025

Gross margin

21.8%

Net margin

1.1%

Per year	1 year	3 years	5 years	10 years
Revenue	-0.4%	–	–	–
Gross profit	-17.0%	–	–	–
Net income	-33.5%	–	–	–
EPS, diluted	-34.3%	–	–	–

Returns and balance sheet

4 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2022	FY2022	FY2025
Return on equity	–	–	13.3%
Return on assets	–	–	2.1%
Capex to revenue	–	–	0.6%
Diluted shares	–	–	9M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin1.1%

Asset turnover1.88×

Equity multiplier6.44×

Return on equity, FY202513.3%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	1.1%	1.88×	6.44×	13.3%
FY2024	1.6%	2.35×	11.25×	43.6%

Where these numbers come from

Parsed from the XBRL in Smith Douglas Homes's annual and quarterly filings with the SEC
Fourth quarters derived from the annual report minus nine months
Every figure in the statements links to its source filing