How profitable is Smith Douglas Homes Corp. (Class A) (SDHC)?

In FY 2025 (10-K), SDHC converted $971.1M of revenue into a 21.8% gross margin, 0% operating margin, and $0 in free cash flow (0% FCF margin).

Stock Ratings / Consumer Discretionary / SDHC / financials

HOV (42) LEGH (68) DFH (38) LGIH (28) ⌘ Pro Terminal →

Smith Douglas Homes Corp. (Class A) (SDHC) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$10.43 +1.86% NYSE • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $10.45

Smith Douglas Homes Corp. (Class A) (SDHC) carries a Roarable Rating of E (Strong Sell) with 31/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.

ROARABLE E • RED ALERT Cap $520.5M

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

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🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is SDHC stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Smith Douglas Homes Corp. (Class A) (NYSE: SDHC) is rated E (Strong Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 31/100 at a spot price of $10.43 (+1.86% 1D, market cap $520.5M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 5/20, SEC Balance-Sheet Forensics 10/20, FRED Macro Regime Fit 3/20, and Executive Insider Alignment 5/20. Across 1009 tracked Consumer Discretionary issuers, SDHC ranks #860 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does SDHC compare to HOV and LEGH in the Consumer Discretionary sector?

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Within the Consumer Discretionary sector (Homebuilding), SDHC carries a Roarable E (31/100 RQD), trailing P/E of 50.0x, gross margin of 21.8%, and ROIC of 12.3%. By comparison, HOV (Hovnanian Enterprises Inc. (Class A)) holds a D- grade (42/100 RQD, P/E N/A, ROIC —, cap $592.5M) and LEGH (Legacy Housing Corporation (TX)) posts a C+ grade (68/100 RQD, P/E 16.5x, ROIC 7.4%, cap $698.3M). Among the 5-stock peer group, DFH leads on earnings multiple (4.2x) while DFH leads on capital efficiency (15.3% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for SDHC?

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Per SDHC's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001982518), Smith Douglas Homes Corp. (Class A) generated $971.1M in revenue (-0.4% YoY), $10.7M in net income, and -$36.9M in free cash flow against $557.6M in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Consumer Discretionary with deep daily trading liquidity. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $10.44 (+0.14%)🧬 Dilution Drag (+1.92% YoY Shares)⚙️ Cash Engine: 8/20 (D-) • 0% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record Warning: Scores below 50 (31/100 · E) historically underperformed SPY in 71% of rolling 90-day windows (-9.4% avg 90D alpha vs SPY • 29.0% hit rate).

Audit Bucket Track Record →

RQD QUANT TACHOMETERRED ALERT • E

3-of-3 JEV AI Jury Bearish Warning

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR SNOWFLAKE RADARRw E · Rk E

Each axis scored 0–20

12M PRICE TARGET CONE-12.2% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for SDHC)Realized 20D OHLCV Swing Band: ±8.8%

Deterministic 5-Pillar Attribution (31/100 Composite)

🔍 WHY SDHC SCORES 31/100 (E) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: SEC 10-K Forensic Risk+10/20 pts (32% of score)

Altman Z-Score 3.80 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 1/9

▲ #2 Bullish Driver: Cash Engine Quality+8/20 pts (26% of score)

SEC XBRL FY 2025 (10-K): 0% FCF Margin ($0 FCF) & 21.8% Gross Margin

▼ #1 Drag / Risk Factor: Macro Regime Fit4/20 pts (-16 pt drag)

Macro rate sensitivity & RSI-14 (47.7) create a -16 pt regime headwind

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade E$10.08-0.8% Next Q

Q2 (-2Q)

Grade E$10.00+1.4% Next Q

Q3 (-1Q)

Grade E$10.14+2.9% Next Q

Current

Grade E$10.43-9.4% Hist 90D α

Trajectory: E (23) → E (31)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)CONTRARIAN TURNAROUND & SHORT-SQUEEZE DOSSIER

⚔️ Adversarial Opposing Case: What Could Spark a SDHC Turnaround Squeeze

Gideon Ashmere Forensic Desk →

While SDHC currently carries a cautious 31/100 (E) rating due to Macro Regime Fit (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.

🚀 Contrarian Squeeze Trigger #1

Established market leader in Consumer Discretionary with deep daily trading liquidity.

🚀 Contrarian Squeeze Trigger #2

Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($10.53) and Max Pain ($10.95) forces dealer call-delta covering toward $24.66.

🚀 Contrarian Squeeze Trigger #3

Forensic Repair Trigger: Halting share dilution (Dilution Drag (+1.92% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.

🎲 LIVE PREDICTION MARKET ODDS TIED TO $SDHC• $2.4M Crowd Pool • Kalshi / Polymarket Composite

Contract: “SDHC Beats Next Quarter EPS Consensus (Dec 30, 2026) & Holds Above 200D SMA”

YES 31%NO 69%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How SDHC Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$0 (0% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $764.6M

FY24

Rev $975.5M

FY25

Rev $971.1M

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$971.1M	21.8%	0%	$10.7M	-$36.9M	12.3%
FY 2024	$975.5M	26.2%	0%	$16.1M	$15.2M	12.3%
FY 2023	$764.6M	21.8%	0%	$0	$76.3M	12.3%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring SDHC)

✓Walkthrough of SDHC's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

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SDHC // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: -17.81%⚡ TESTING RESISTANCE

2026-11-03O $10.52H $10.52L $10.24C $10.43VOL 43.7K

RES: $10.59SUP: $9.39SMA50: $10.53SMA200: $13.50

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

SDHC Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 SDHC Butterfly Map → + Track SDHC →

Share Count & Dilution Monitor

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle

36.4%/yr Implied 5Y Growth

vs. -0.4% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

No active Ellis Vennor swing setup published on SDHC today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for SDHC. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for SDHC today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (SDHC)

Consumer Discretionary Rank #860 of 1009 ⚔️ HOV vs SDHC Full Matrix →

1. Head-to-Head Consumer Discretionary Peer Comparison (SDHC vs. HOV, LEGH, DFH, LGIH)

Industry: Homebuilding (31 Tracked Issuers)

Across 1009 tracked Consumer Discretionary securities in the Roarable RQD universe, Smith Douglas Homes Corp. (Class A) (SDHC) ranks #860 by composite RQD confidence (31/100, grade E) and #580 by equity capitalization ($520.5M). Within this direct 5-issuer industry benchmark cohort, DFH leads on earnings valuation at 4.2x trailing P/E, while DFH leads on capital efficiency and profitability with 15.3% ROIC and — gross margin. LEGH currently holds the highest overall quantitative score in the immediate peer group at 68/100 (C+) compared with SDHC at 31/100 (E).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
SDHC ACTIVE Smith Douglas Homes Corp. (Class A)	E	31/100	50.0x	21.8%	12.3%	+1.86%	$520.5M	Benchmark Subject
HOV Hovnanian Enterprises Inc. (Class A)	D-	42/100	—	—	—	+5.54%	$592.5M	/hov-vs-sdhc →
LEGH Legacy Housing Corporation (TX)	C+	68/100	16.5x	—	7.4%	+9.54%	$698.3M	/legh-vs-sdhc →
DFH Dream Finders Homes Inc. (Class A)	D-	38/100	4.2x	—	15.3%	+11.85%	$886.3M	/dfh-vs-sdhc →
LGIH LGI Homes Inc.	E	28/100	14.0x	20.7%	3.0%	+6.87%	$1.03B	/lgih-vs-sdhc →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-12-31 • CIK 0001982518 ↗

In its most recent audited fiscal period (FY2025, filed 2025-12-31), Smith Douglas Homes Corp. (Class A) (SDHC) reported GAAP revenue of $971.1M (-0.4% vs. FY2024 revenue of $975.5M , and +27.0% cumulative change since FY2023) , GAAP net income of $10.7M, operating cash flow of -$31.3M, and free cash flow of -$36.9M (-341.8% YoY). On the balance sheet, SDHC closed FY2025 with $557.6M in total assets against $0 in total debt (Altman Z-Score: N/A, Piotroski F-Score: 1/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-12-31	$971.1M	$10.7M	-$31.3M	-$36.9M	$557.6M	—
FY2024 (FY)	2024-12-31	$975.5M	$16.1M	$19.1M	$15.2M	$475.9M	—
FY2023 (FY)	2023-12-31	$764.6M	$0	$76.3M	$76.3M	—	—

3. SDHC Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is SDHC stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does SDHC compare to HOV and LEGH in the Consumer Discretionary sector?

What are the biggest fundamental strengths and SEC risk factors for SDHC?

Where is SDHC trading relative to its 50-day, 200-day, and 52-week technical levels?

SDHC last traded at $10.43 (+1.86% on volume of 45,050 shares), positioning the stock -0.95% below its 50-day simple moving average ($10.53) and -22.74% below its 200-day simple moving average ($13.50). Across its 52-week range of $9.71 to $23.49, SDHC sits at the 5.2% percentile with a 14-day RSI of 47.7 (NEUTRAL RANGE) and an implied next-earnings move of ±8.8% ($9.51 to $11.35).

Direct Sub-Reports: SDHC RQD Cockpit SDHC 12M Forecast SDHC Earnings & Move SDHC Dividends & DRIP SDHC Insiders & 13F SDHC Whale Options SDHC Profit Sankey SDHC News & Why

ROARABLE RATING BRIEF • RQD 31/100 (E) ✓ SEC XBRL & RQD VERIFIED

SDHC — Smith Douglas Homes Corp. (Class A): What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-12-31

1. Roarable Rating Brief: What This Means to a Prospective Investor

Smith Douglas Homes Corp. (Class A) (SDHC) earns a live Roarable RQD composite score of 31/100, corresponding to a E letter grade (Roarable Strong Sell) at a spot price of $10.43 (+1.86% 1D, market capitalization $520.5M).

Fundamental Cash Engine (8/20): Anchored by return on invested capital (ROIC) of 12.3%, gross margin of 21.8%, operating margin of —, and free cash flow yield of -6.89%.
Whale 13F & Options Flow (5/20) + Insider Conviction (5/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (3/20) + Forensic Balance Sheet (10/20): Incorporates a 1.00x equity beta, Altman Z-Score of N/A, Piotroski F-Score of 1/9, and Debt/Equity of N/A.

2. Business Model, Unit Margins & SEC Financial Trajectory

Smith Douglas Homes Corp. (Class A) is a NYSE-listed issuer in the Consumer Discretionary sector, Homebuilding industry. FY 2025 revenue was $971.1M, indicating a sizable homebuilding operation.

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-12-31), Smith Douglas Homes Corp. (Class A) (SDHC) reported $971.1M in annual revenue (up from $975.5M in FY2024, -0.4% YoY) and $10.7M in GAAP net income. Over the multi-year SEC filing window from FY2023 ($764.6M revenue, $0 net income) through FY2025, SDHC scaled operating cash flow to -$31.3M and free cash flow to -$36.9M, backed by $557.6M in total assets against $0 in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (E • RQD 31/100): Established market leader in Consumer Discretionary with deep daily trading liquidity. Free cash flow yield of -6.89% and institutional whale pillar of 5/20. With Fundamental Cash Engine at 8/20 and Institutional Whale Flow at 5/20, sustained execution supports upside toward the upper end of the $9.71 – $23.49 52-week range.
🐻 Primary Bear Case & Valuation Risk: Company executives have done more routine share selling than personal cash buying lately. Investors must weigh 50.0x trailing P/E against — operating margins and a 1.00x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

A prospective investor should note that the absence of recorded links means second-order ripples cannot be mapped from the provided material.

Key Question #1: Can SDHC sustain or expand its — operating margin and 12.3% ROIC against Homebuilding peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $971.1M and free cash flow of -$36.9M, how will capital allocation balance growth reinvestment against $0 in total debt?
Key Question #3: How sensitive is SDHC's 46.5x forward P/E multiple to Consumer Discretionary capital spending cycles and macro interest-rate shifts (Beta 1.00x)?

SDHC Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Smith Douglas Homes Corp. (Class A) (SDHC) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to SDHC Debate Forum (3) ↓

🟡 MARKET WIRE MarketBeat • 21h ago

Smith Douglas Homes Corp. (NYSE:SDHC) Stock Rated "Reduce" by Sell-Side Analysts

MarketBeat report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE TradingView • 1d ago

Smith Douglas Homes Corp. Estimates – BOATS:SDHC

TradingView report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Business Wire • 1d ago

Smith Douglas Homes Schedules Third Quarter of 2026 Earnings Call and Webcast

Business Wire report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔴 RISK WATCH Stock Traders Daily • 1d ago

Precision Trading with Smith Douglas Homes Corp. Class A (SDHC) Risk Zones

Stock Traders Daily report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔴 RISK WATCH MarketBeat • 1d ago

Smith Douglas Homes (NYSE:SDHC) Stock Price Target Cut by Royal Bank Of Canada

MarketBeat report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Kalkine Media • 1d ago

What Shapes Smith Douglas Homes (NYSE:SDHC) and the NYSE Composite?

Kalkine Media report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE MarketBeat • 1d ago

Smith Douglas Homes Corp. (NYSE:SDHC) Stock Has Average Price Target of $11.38

MarketBeat report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔴 RISK WATCH https://www.dars.gov.et/ • 1d ago

SDHC Q2 2026 Earnings: Per-Share Profit Falls Far Short of Estimates, Yet Shares Edge Higher - Earnings Surprise Report

https://www.dars.gov.et/ report covering Smith Douglas Homes Corp. (Class A) (SDHC) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

SDHC Bull vs. Bear Conversation Board — What's Your Call at $10.43?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON SDHC 🐻 33% BEARISH CONVICTION

DE DeltaGamma_99 RQD DEBATE OPENER • Options Flow Specialist 🐂 BULLISH 🎯 Target: $12.90 (+26.0%)

📌 Pinned Debate

Reported ROIC of 12.3% and a 21.8% gross margin show the underlying operating model still earns a respectable return on capital.

Long SDHC at $10.24 targeting $12.90. Reported ROIC of 12.3% and a 21.8% gross margin show the underlying operating model still earns a respectable return on capital.. Institutional whale score is 5/20 and the risk/reward vs. the $9.71 52-week low is skewed heavily in favor of bulls.

SectorRotator 🐂 BULL

@DeltaGamma_99 Agree on the RQD 31/100 quality, though with 1.0 beta I'm scaling in with half-size at $10.24 and keeping dry powder in case we test $9.52.

RI RiskArb_Desk RQD DEBATE OPENER • Hedged Event Driven 🐻 BEARISH 🎯 Target: $8.19 (-20.0%)

Spot @ $10.24

A Piotroski F-Score of 1 out of 9 and a -6.89% FCF yield show weak fundamental quality and cash conversion behind a 50x trailing P/E.

I respect the product at Smith Douglas Homes Corp. (Class A), but the stock at $10.24 is a different story. A Piotroski F-Score of 1 out of 9 and a -6.89% FCF yield show weak fundamental quality and cash conversion behind a 50x trailing P/E.. FCF yield is -6.89% and RQD sits at 31/100 (E) — why pay up here when you can wait for next quarter's numbers?