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Smith Douglas HomesSDHC -1.72%33 ROA % is 0.17% as of Jun. 2026, which is 99% below its 10-year median of 31.08. 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 1,803 Real Estate companies, Smith Douglas Homes ranks worse than 55.91% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Smith Douglas Homes's annualizedNet Income for the quarter that ended in Jun. 2026 was $1 Mil.
Smith Douglas Homes's average Total Assets over the quarter that ended in Jun. 2026 was $596 Mil. Therefore, Smith Douglas Homes's annualized ROA % for the quarter that ended in Jun. 2026 was 0.17%.
The historical rank and industry rank for Smith Douglas Homes's ROA % or its related term are showing as below:
SDHC'
s ROA % Range Over the Past 10 Years
Min: 1.12 Med: 31.08 Max: 66.16
Current: 1.12
During the past 5 years, Smith Douglas Homes's highest ROA % was 66.16%. The lowest was 1.12%. And the median was 31.08%.
SDHC's ROA % is ranked worse than 55.91% of 1803
companies
in the Real Estate industry
Industry Median: 1.83
vs SDHC: 1.12
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Smith Douglas Homes ROA % Related Terms
Smith Douglas Homes ROA % Historical Data
* Premium members only.
The historical data trend for Smith Douglas Homes's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Smith Douglas Homes's ROA % distribution charts can be found below:
* The bar in red indicates where Smith Douglas Homes's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Smith Douglas Homes (SDHC) has a ROA % of 0.17% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Smith Douglas Homes and its competitors. This is 99% below median its historical median of 31.08. Over the past decade, Smith Douglas Homes' ROA % has ranged from 1.12 to 66.16. According to the industry distribution chart, Smith Douglas Homes ranks #1008 out of 1803 companies in the Real Estate industry, placing it in the top 55.9%.
Is Smith Douglas Homes' ROA % too high?
Smith Douglas Homes' current ROA % of 0.17% is 99% below median its 10-year median of 31.08. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 66.16. The Real Estate industry median ROA % is 1.83. Smith Douglas Homes' value of 0.17% is 90.7% below this industry median. Based on the distribution chart, Smith Douglas Homes ranks #1008 out of 1803 companies in the Real Estate industry, which is below 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' ROA % compare to AXR and LPA?
According to the Real Estate industry distribution chart, Smith Douglas Homes ranks #1008 out of 1803 companies for ROA %. This places Smith Douglas Homes in the lower half of its industry. The industry median ROA % is 1.83. Smith Douglas Homes' value of 0.17% is 90.7% below this benchmark. Historically, Smith Douglas Homes' own ROA % has ranged from 1.12 to 66.16 over the past decade. While the company's 10-year median is 31.08 vs. the industry median of 1.83, 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 ROA % for a Real Estate company?
The median ROA % among Real Estate companies is 1.83, based on 1,803 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith Douglas Homes's current ROA % of 0.17% is 90.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Smith Douglas Homes and its competitors. For the Real Estate industry, the median ROA % is 1.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Douglas Homes's current ROA % is 0.17%, which is 99% below median its own 10-year median of 31.08. 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 $13.75 — trading 52.7% below its estimated fair value. The current ROA % is 0.17%, which is 99% below median its 10-year median of 31.08 and 90.7% below the Real Estate industry median of 1.83. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Smith Douglas Homes (SDHC), the current ROA % is 0.17% 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 $13.75 is trading 52.7% below its estimated GF Value™ of $29.09.
GuruFocus considers Smith Douglas Homes to be Significantly Undervalued.
Key valuation signals for SDHC:
ROA %: 0.17% (99% below median its 10-year median of 31.08)
GF Value™: $29.09 vs. price of $13.75 (52.7% below fair value)
Industry Position: 90.7% below the Real Estate median (#1008 of 1803)
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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