Smith Douglas Homes Corp. Class A Common Stock (SDHC)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at sensible prices. Smith Douglas builds entry-level and empty-nest homes and adds title insurance and mortgage brokerage, but homebuilding is cyclical and competitive, so I see no wide moat. The filed results are troubling. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $273.0M, yet net income was only $246,000 and diluted EPS was $0.03. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $223.9M, net income was $2.4M, and diluted EPS was $0.26. Revenue rose, but profit nearly vanished. For FY2025, the year ended 2025-12-31, revenue was $971.1M and net income was $10.7M; FY2024, the year ended 2024-12-31, had revenue of $975.5M and net income of $16.1M. FY2023, the year ended 2023-12-31, had net income of $123.2M. That is a severe profit collapse. FairStock labels it a SLOW GROWER — Shrinking, with profit falling 70.5% a year over two years. At the 2026-10-13 close of $10.08, FairStock's P/E is 14 and P/B is 1.06. The Graham Number is $12.39, implying an 18.64% margin of safety, and FCF yield is 40.1% on $33.9M of trailing free cash flow. Debt/equity of 0.16 is a comfort, but ROCE of 4.86%, ROE of 9.22%, Altman Z-Score of 1.74, and EV/EBITDA of 3.43 suggest a cheap but low-quality cyclical. I would want a wider discount and evidence margins can recover.

In plain English: Smith Douglas Homes builds and sells single-family homes, mainly to entry-level and empty-nest buyers, and also offers title insurance and mortgage brokerage services. The business looks weak right now: revenue has grown, but profit has fallen to almost nothing in the latest quarter. At the 2026-10-13 closing price of $10.08, the price looks somewhat cheap compared with the company's assets and cash generation, though weak profits make it hard to call it clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer