Smith Douglas Homes Corp. (SDHC) AI Stock Analysis

Smith Douglas Homes Corp., founded in 2008 and based in Woodstock, Georgia, operates primarily in the southeastern United States. The company focuses on the design, construction, and sale of single-family homes, while also providing closing, escrow, and title insurance services to facilitate home transactions. Smith Douglas Homes targets entry-level buyers purchasing their first homes as well as empty-nest buyers seeking to downsize. Through this approach, the company addresses diverse customer needs across life stages in its southeastern footprint, combining modern design trends with reliable residential construction practices.

Smith Douglas Homes grew revenue at a 4-year CAGR of 17.0% from $518.9M in FY2021 to $971.1M in FY2025. Annual revenue peaked at $975.5M in FY2024 before decreasing 0.4% in FY2025. Gross margin contracted from 29.5% in FY2022 to 21.8% in FY2025, while operating margin fell from 18.5% to 7.5%. Net income declined from $140.4M in FY2022 to $10.7M in FY2025, lowering net margin to 1.1%. Over the trailing twelve months ending June 30, 2026, revenue totaled $1.00B with an operating margin of 2.2%. In the latest quarter, revenue grew 21.9% year-over-year, while earnings fell 88.7%.

As of June 30, 2026, Smith Douglas Homes held $14.2M in cash and short-term investments against total debt of $68.7M, resulting in net debt of $54.5M. Total assets stood at $592.1M and shareholders' equity was $79.5M, yielding a current ratio of 5.73 and a debt-to-equity ratio of 0.86. Operating cash flow fell to -$31.3M in FY2025, producing free cash flow of -$36.9M. Cash use in FY2025 included $5.5M in capital expenditures and $28.4M in dividends paid.

At $10.40 per share, Smith Douglas Homes trades at a trailing P/E of 14.4x and a forward P/E of 22.0x, compared to median values of 21.6x and 23.5x for its US-listed Real Estate peers. Its price-to-sales ratio of 0.1x and EV/EBITDA of 12.8x also sit below the peer medians of 3.7x and 14.7x. The company has a market cap of $87.3M and an enterprise value of $600.6M. Over the past year, the stock fell 34.8%, underperforming the S&P 500 (SPY) gain of 16.8%.

Smith Douglas Homes is covered by analysts with 5 Hold ratings and 1 Sell rating, with no Buy ratings. The mean price target is $10.00, indicating downside of 3.8% from the closing price of $10.40. For the fiscal year ending December 31, 2026, consensus estimates forecast revenue of $1.05B and EPS of $0.27, representing an EPS drop of 95.3%. For next fiscal year, 3 analysts project revenue of $1.15B and EPS of $0.37. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Smith Douglas Homes Corp. (SDHC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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