Smith Douglas Homes Corp. (SDHC) Stock

Smith Douglas Homes Corp. (SDHC) is a Industrials stock trading at $11.10 (as of 2026-09-02), with a market capitalization of $100.44M and a trailing P/E of 11.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Smith Douglas Homes Corp. engages in the design, construction, and sale of single-family homes in the southeastern United States. The company operates in metropolitan Atlanta, Birmingham, Charlotte, Huntsville, Nashville, Raleigh-Durham, and Houston. It also provides closing, escrow, and title insurance services. The company was founded in 2008 and is headquartered in Woodstock, Georgia.

Understand Smith Douglas Homes Corp.: how it makes money

Smith Douglas Homes builds and sells single-family homes across seven southeastern US metros, earning its margin on each home delivered. The land-light model keeps 96% of its 23,527 controlled lots in options rather than full ownership, which limits capital use but ties margins to land costs it does not control.

Profit is the spread between optioned land cost and home sale price, not captured land appreciation.

Business quality (Weak): Thin and compressing: 2.1% operating margin with adjusted EBITDA margin falling from 8.8% to 4.9% in one year signals a business squeezed between land costs and rate-sensitive demand.

Valuation: At 13× earnings, SDHC trades 43% below the Construction average (23×). Note: the low multiple may reflect one-time earnings items.

Bull case

Backlog builds delivery pipeline: Backlog grew 17% to 1,000 homes with $322.1 million in contract value, giving visibility into near-term deliveries even as quarterly revenue dipped 8% year over year.
Hard-cost discipline cushions margin: Management reports hard-cost savings of 2.5% to 3% year over year, which partially offsets the gross-margin pressure from elevated land and financing costs.
Incentive pullback signals demand hold: Management is reducing rate buy-downs without an observed sales-pace slowdown, suggesting underlying buyer demand is floor-holding even while mortgage rates stay elevated.

Bear case

EBITDA margin halves in a year: Adjusted EBITDA margin fell to 4.9% from 8.8% year over year, a sharp deterioration that shows how quickly thin homebuilder profits compress when demand softens.
Land impairments are hitting the P&L: Q2 absorbed $3.1 million in impairments and $4.5 million in abandonment charges, indicating some optioned lots are not converting to sales at the prices the model assumed.
No full-year visibility offered: Management withheld full-year guidance citing variable demand conditions, a notable step back for a company whose 2.1% operating margin leaves almost no cushion for a demand miss.

Valuation — source: SEC EDGAR (first-party)
Price	$11.10
Market Cap	$100.44M
P/E Ratio	11.7
EV / EBITDA	1.2
Price / Book	0.23
Price / Sales	0.11
FCF Yield	-36.7%
DCF Value (model)	$123.14
DCF Upside vs Price	1009.9%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$971.12M
Net Margin	1.1%
Revenue Growth (YoY)	-8.1%
EPS Growth (YoY)	-80.0%
FCF Growth (YoY)	-99.4%

Valuation vs Sector & Industry
Stock P/E	11.7
Sector P/E (Industrials)	25.7
Industry P/E (Construction)	22.8
vs Sector	-54.5%
vs Industry	-48.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	Conifer Management, L.L.C. ($18.35M)
Institutional Holders Tracked	10

Company
Sector	Industrials
Industry	Construction
CEO	Gregory S. Bennett
Employees	445
Country	US
IPO Date	2024-01-11

Smith Douglas Homes Corp. earnings call transcripts

SDHC Q4 FY25 earnings call transcript (reported 2026-03-11) · analysis

All SDHC earnings calls

Related Companies (Construction; 8 comparable construction companies)

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.