Smith Douglas Homes Corp.
Smith Douglas Homes Corp. Fundamental Analysis
Smith Douglas Homes Corp. (SDHC) shows moderate financial fundamentals with a PE ratio of 11.40, profit margin of 1.10%, and ROE of 13.13%. The company generates $1.0B in annual revenue with strong year-over-year growth of 27.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SDHC's fundamental strength across five key dimensions:
Efficiency Score
WeakSDHC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSDHC trades at attractive valuation levels.
Growth Score
ModerateSDHC shows steady but slowing expansion.
Financial Health Score
ExcellentSDHC maintains a strong and stable balance sheet.
Profitability Score
WeakSDHC struggles to sustain strong margins.
Key Financial Metrics
Is SDHC Expensive or Cheap?
P/E Ratio
SDHC trades at 11.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SDHC's PEG of -2.05 indicates potential undervaluation.
Price to Book
The market values Smith Douglas Homes Corp. at 1.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.21 times EBITDA. This is generally considered low.
How Well Does SDHC Make Money?
Net Profit Margin
For every $100 in sales, Smith Douglas Homes Corp. keeps $1.10 as profit after all expenses.
Operating Margin
Core operations generate 7.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.13 in profit for every $100 of shareholder equity.
ROA
Smith Douglas Homes Corp. generates $1.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smith Douglas Homes Corp. generates limited operating cash flow of $-31.45M, signaling weaker underlying cash strength.
Free Cash Flow
Smith Douglas Homes Corp. generates weak or negative free cash flow of $-37.00M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.09 in free cash annually.
FCF Yield
SDHC converts -30.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
160.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SDHC Stacks Against Its Sector Peers
| Metric | SDHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.40 | 22.50 | Better (Cheaper) |
| ROE | 13.13% | 700.00% | Weak |
| Net Margin | 1.10% | -37372.00% (disorted) | Weak |
| Debt/Equity | 0.51 | -20.81 (disorted) | Distorted |
| Current Ratio | 160.67 | 1949.79 | Strong Liquidity |
| ROA | 1.92% | -1322.00% (disorted) | Weak |
SDHC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smith Douglas Homes Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.00%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-74.30%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-38.02%
Industry Style: Income, Inflation Hedge, REIT
Declining