GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Smith Douglas Homes Corp (NYSE:SDHC) » Definitions » Return-on-Tangible-Equity

SDHC (Smith Douglas Homes) Return-on-Tangible-Equity : 21.67% (As of Mar. 2025)


View and export this data going back to 2024. Start your Free Trial

What is Smith Douglas Homes Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Smith Douglas Homes's annualized net income for the quarter that ended in Mar. 2025 was $11 Mil. Smith Douglas Homes's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $50 Mil. Therefore, Smith Douglas Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 21.67%.

The historical rank and industry rank for Smith Douglas Homes's Return-on-Tangible-Equity or its related term are showing as below:

SDHC' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.91   Med: 68.17   Max: 108.02
Current: 37.2

During the past 4 years, Smith Douglas Homes's highest Return-on-Tangible-Equity was 108.02%. The lowest was 13.91%. And the median was 68.17%.

SDHC's Return-on-Tangible-Equity is ranked better than
95.88% of 1722 companies
in the Real Estate industry
Industry Median: 3.555 vs SDHC: 37.20

Smith Douglas Homes Return-on-Tangible-Equity Historical Data

The historical data trend for Smith Douglas Homes's Return-on-Tangible-Equity 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.

* Premium members only.

Smith Douglas Homes Return-on-Tangible-Equity Chart

Smith Douglas Homes Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
65.47 108.02 70.86 13.91

Smith Douglas Homes Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.95 41.45 54.09 36.24 21.67

Competitive Comparison of Smith Douglas Homes's Return-on-Tangible-Equity

For the Real Estate - Development subindustry, Smith Douglas Homes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Smith Douglas Homes's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Smith Douglas Homes's Return-on-Tangible-Equity falls into.


;
;

Smith Douglas Homes Return-on-Tangible-Equity Calculation

Smith Douglas Homes's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=16.07/( (183.177+47.906 )/ 2 )
=16.07/115.5415
=13.91 %

Smith Douglas Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=10.732/( (47.906+51.139)/ 2 )
=10.732/49.5225
=21.67 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Smith Douglas Homes  (NYSE:SDHC) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Smith Douglas Homes Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Smith Douglas Homes's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Smith Douglas Homes Business Description

Traded in Other Exchanges
N/A
Address
110 Village Trail, Suite 215, Woodstock, GA, USA, 30188
Smith Douglas Homes Corp is a company engaged in the design, construction, and sale of single-family homes in some of the highest growth and desirable markets in the Southeastern United States. It is organized into eight geographical divisions which comprise two reportable segments. Its Southeast segment consists of Atlanta, Central Georgia, Charlotte, Greenville, and Raleigh divisions. Its Central segment consists of Alabama, Houston, and Nashville divisions.