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Smith Douglas HomesSDHC +0.07%33 Gross Margin % is 17.55% as of Jun. 2026, which is 33% below its 10-year median of 26.20. GuruFocus rates SDHC with a GF Score™ of 33/100 and a GF Value™ of $29.09 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,644 Real Estate companies, Smith Douglas Homes ranks worse than 76.52% on this metric.
Smith Douglas Homes (NYSE:SDHC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Smith Douglas Homes had a gross margin of 17.55% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Smith Douglas Homes Gross Margin % Related Terms
Smith Douglas Homes Gross Margin % Historical Data
* Premium members only.
The historical data trend for Smith Douglas Homes's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Real Estate - Development subindustry, Smith Douglas Homes's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Smith Douglas Homes Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Smith Douglas Homes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smith Douglas Homes's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Smith Douglas Homes (SDHC) has a Gross Margin % of 17.55% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smith Douglas Homes and its competitors. This is 33% below median its historical median of 26.20. Over the past decade, Smith Douglas Homes' Gross Margin % has ranged from 19.47 to 29.49. According to the industry distribution chart, Smith Douglas Homes ranks #1258 out of 1644 companies in the Real Estate industry, placing it in the top 76.5%.
Is Smith Douglas Homes' Gross Margin % too high?
Smith Douglas Homes' current Gross Margin % of 17.55% is 33% below median its 10-year median of 26.20. Over the past 10 years, this metric has ranged from a low of 19.47 to a high of 29.49. The Real Estate industry median Gross Margin % is 36.23. Smith Douglas Homes' value of 17.55% is 51.6% below this industry median. Based on the distribution chart, Smith Douglas Homes ranks #1258 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Smith Douglas Homes has a GF Score™ of 33/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Smith Douglas Homes' Gross Margin % compare to AXR and LPA?
According to the Real Estate industry distribution chart, Smith Douglas Homes ranks #1258 out of 1644 companies for Gross Margin %. This places Smith Douglas Homes in the lower half of its industry. The industry median Gross Margin % is 36.23. Smith Douglas Homes' value of 17.55% is 51.6% below this benchmark. Historically, Smith Douglas Homes' own Gross Margin % has ranged from 19.47 to 29.49 over the past decade. While the company's 10-year median is 26.20 vs. the industry median of 36.23, Smith Douglas Homes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.23, based on 1,644 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith Douglas Homes's current Gross Margin % of 17.55% is 51.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Smith Douglas Homes and its competitors. For the Real Estate industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Douglas Homes's current Gross Margin % is 17.55%, which is 33% below median its own 10-year median of 26.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith Douglas Homes stock overvalued right now?
Based on GuruFocus' analysis, Smith Douglas Homes (SDHC) is currently considered Significantly Undervalued. The stock's GF Value™ is $29.09, compared to a current price of $13.99 — trading 51.9% below its estimated fair value. The current Gross Margin % is 17.55%, which is 33% below median its 10-year median of 26.20 and 51.6% below the Real Estate industry median of 36.23. Smith Douglas Homes' overall GF Score™ is 33/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Smith Douglas Homes (SDHC), the current Gross Margin % is 17.55% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Smith Douglas Homes (SDHC) Overvalued in 2026?
Based on GuruFocus' analysis, Smith Douglas Homes stock appears to be undervalued.
The current stock price of $13.99 is trading 51.9% below its estimated GF Value™ of $29.09.
GuruFocus considers Smith Douglas Homes to be Significantly Undervalued.
Key valuation signals for SDHC:
Gross Margin %: 17.55% (33% below median its 10-year median of 26.20)
GF Value™: $29.09 vs. price of $13.99 (51.9% below fair value)
Industry Position: 51.6% below the Real Estate median (#1258 of 1644)
No single metric tells the full story. See the SDHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith Douglas Homes Corpis a builder of single-family homes in communities in certain markets in the southeastern and southern United States. The Company's homes and communities are targeted to first-time and empty-nest homebuyers. The Company currently operates in metropolitan Atlanta, Birmingham, Chattanooga, Central Georgia, Charlotte, Dallas-Fort Worth, Greenville, Alabama Gulf Coast, Huntsville, Nashville, Raleigh and Houston. Its operations are currently organized into ten geographical divisions which comprise two reportable segments. Its Southeast segment consists of its Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. Its Central segment consists of its Alabama, Dallas-Fort Worth, Houston, Nashville, and Alabama Gulf Coast divisions.
33GF Score
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