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Smith Douglas HomesSDHC +0.07%33 Interest Coverage is 9.39 as of Jun. 2026, which is 80% below its 10-year median of 47.87. 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 1,305 Real Estate companies, Smith Douglas Homes ranks better than 72.87% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Smith Douglas Homes's
Operating Income
for the
three
months ended in Jun. 2026 was $6 Mil. Smith Douglas Homes's Interest Expense for the
three
months ended in Jun. 2026 was $-1 Mil.
Smith Douglas Homes's interest coverage for the quarter that ended in Jun. 2026 was 9.39.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Smith Douglas Homes's Interest Coverage or its related term are showing as below:
SDHC'
s Interest Coverage Range Over the Past 10 Years
Min: 13.92 Med: 47.87 Max: 140.17
Current: 13.92
SDHC's Interest Coverage is ranked better than 72.87% of 1305
companies
in the Real Estate industry
Industry Median: 4.3
vs SDHC: 13.92
Smith Douglas Homes (NYSE:SDHC) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Smith Douglas Homes Interest Coverage Related Terms
Smith Douglas Homes Interest Coverage Historical Data
* Premium members only.
The historical data trend for Smith Douglas Homes's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SDHC vs AXR, LPA, JFB: Interest Coverage Comparison
For the Real Estate - Development subindustry, Smith Douglas Homes's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Smith Douglas Homes's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Smith Douglas Homes's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Smith Douglas Homes (SDHC) has a Interest Coverage of 9.39 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Smith Douglas Homes and its competitors. This is 80% below median its historical median of 47.87. Over the past decade, Smith Douglas Homes' Interest Coverage has ranged from 13.92 to 140.17. According to the industry distribution chart, Smith Douglas Homes ranks #354 out of 1305 companies in the Real Estate industry, placing it in the top 27.1%.
Is Smith Douglas Homes' Interest Coverage too high?
Smith Douglas Homes' current Interest Coverage of 9.39 is 80% below median its 10-year median of 47.87. Over the past 10 years, this metric has ranged from a low of 13.92 to a high of 140.17. The Real Estate industry median Interest Coverage is 4.30. Smith Douglas Homes' value of 9.39 is 118.4% above this industry median. Based on the distribution chart, Smith Douglas Homes ranks #354 out of 1305 companies in the Real Estate industry, which is above the industry midpoint. 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' Interest Coverage compare to AXR and LPA?
According to the Real Estate industry distribution chart, Smith Douglas Homes ranks #354 out of 1305 companies for Interest Coverage. This puts Smith Douglas Homes in the upper half of its industry. The industry median Interest Coverage is 4.30. Smith Douglas Homes' value of 9.39 is 118.4% above this benchmark. Historically, Smith Douglas Homes' own Interest Coverage has ranged from 13.92 to 140.17 over the past decade. While the company's 10-year median is 47.87 vs. the industry median of 4.30, Smith Douglas Homes has consistently been above 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 Interest Coverage for a Real Estate company?
The median Interest Coverage among Real Estate companies is 4.30, based on 1,305 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith Douglas Homes's current Interest Coverage of 9.39 is 118.4% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Smith Douglas Homes and its competitors. For the Real Estate industry, the median Interest Coverage is 4.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Douglas Homes's current Interest Coverage is 9.39, which is 80% below median its own 10-year median of 47.87. 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 Interest Coverage is 9.39, which is 80% below median its 10-year median of 47.87 and 118.4% above the Real Estate industry median of 4.30. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Smith Douglas Homes (SDHC), the current Interest Coverage is 9.39 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:
Interest Coverage: 9.39 (80% below median its 10-year median of 47.87)
GF Value™: $29.09 vs. price of $13.99 (51.9% below fair value)
Industry Position: 118.4% above the Real Estate median (#354 of 1305)
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
Get the complete analysis for SDHC
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