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Smith Douglas HomesSDHC +0.07%33 Return-on-Tangible-Equity is 1.79% as of Jun. 2026, which is 97% below its 10-year median of 65.47. 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 1,721 Real Estate companies, Smith Douglas Homes ranks better than 74.67% on this metric.
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 Jun. 2026 was $1 Mil. Smith Douglas Homes's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $55 Mil. Therefore, Smith Douglas Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 1.79%.
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: 11.46 Med: 65.47 Max: 108.02
Current: 11.46
During the past 5 years, Smith Douglas Homes's highest Return-on-Tangible-Equity was 108.02%. The lowest was 11.46%. And the median was 65.47%.
SDHC's Return-on-Tangible-Equity is ranked better than 74.67% of 1721
companies
in the Real Estate industry
Industry Median: 4.5
vs SDHC: 11.46
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
Smith Douglas Homes Return-on-Tangible-Equity Historical Data
* Premium members only.
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.
Smith Douglas Homes Return-on-Tangible-Equity Chart
SDHC vs AXR, LPA, JFB: Return-on-Tangible-Equity Comparison
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 Return-on-Tangible-Equity vs 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.
* 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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 1.79% mean?
Smith Douglas Homes (SDHC) has a Return-on-Tangible-Equity of 1.79% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Smith Douglas Homes and its competitors. This is 97% below median its historical median of 65.47. Over the past decade, Smith Douglas Homes' Return-on-Tangible-Equity has ranged from 11.46 to 108.02. According to the industry distribution chart, Smith Douglas Homes ranks #436 out of 1721 companies in the Real Estate industry, placing it in the top 25.3%.
Is Smith Douglas Homes' Return-on-Tangible-Equity too high?
Smith Douglas Homes' current Return-on-Tangible-Equity of 1.79% is 97% below median its 10-year median of 65.47. Over the past 10 years, this metric has ranged from a low of 11.46 to a high of 108.02. The Real Estate industry median Return-on-Tangible-Equity is 4.50. Smith Douglas Homes' value of 1.79% is 60.2% below this industry median. Based on the distribution chart, Smith Douglas Homes ranks #436 out of 1721 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' Return-on-Tangible-Equity compare to AXR and LPA?
According to the Real Estate industry distribution chart, Smith Douglas Homes ranks #436 out of 1721 companies for Return-on-Tangible-Equity. This puts Smith Douglas Homes in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.50. Smith Douglas Homes' value of 1.79% is 60.2% below this benchmark. Historically, Smith Douglas Homes' own Return-on-Tangible-Equity has ranged from 11.46 to 108.02 over the past decade. While the company's 10-year median is 65.47 vs. the industry median of 4.50, 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 Return-on-Tangible-Equity for a Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.50, based on 1,721 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith Douglas Homes's current Return-on-Tangible-Equity of 1.79% is 60.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Smith Douglas Homes and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Douglas Homes's current Return-on-Tangible-Equity is 1.79%, which is 97% below median its own 10-year median of 65.47. 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 Return-on-Tangible-Equity is 1.79%, which is 97% below median its 10-year median of 65.47 and 60.2% below the Real Estate industry median of 4.50. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Smith Douglas Homes (SDHC), the current Return-on-Tangible-Equity is 1.79% 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:
Return-on-Tangible-Equity: 1.79% (97% below median its 10-year median of 65.47)
GF Value™: $29.09 vs. price of $13.99 (51.9% below fair value)
Industry Position: 60.2% below the Real Estate median (#436 of 1721)
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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