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Smith Douglas HomesSDHC +0.07%33 ROC (Joel Greenblatt) % is 2.25% as of Jun. 2026, which is 95% below its 10-year median of 46.08. 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 1,756 Real Estate companies, Smith Douglas Homes ranks worse than 55.41% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Smith Douglas Homes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 2.25%.
The historical rank and industry rank for Smith Douglas Homes's ROC (Joel Greenblatt) % or its related term are showing as below:
SDHC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.79 Med: 46.08 Max: 99.57
Current: 9.79
During the past 5 years, Smith Douglas Homes's highest ROC (Joel Greenblatt) % was 99.57%. The lowest was 9.79%. And the median was 46.08%.
SDHC's ROC (Joel Greenblatt) % is ranked worse than 55.41% of 1756
companies
in the Real Estate industry
Industry Median: 13.51
vs SDHC: 9.79
Smith Douglas Homes's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Smith Douglas Homes (NYSE:SDHC) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Smith Douglas Homes ROC (Joel Greenblatt) % Related Terms
Smith Douglas Homes ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Smith Douglas Homes's ROC (Joel Greenblatt) % 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.
SDHC vs AXR, LPA, JFB: ROC (Joel Greenblatt) % Comparison
For the Real Estate - Development subindustry, Smith Douglas Homes's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Smith Douglas Homes's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Smith Douglas Homes's ROC (Joel Greenblatt) % falls into.
Smith Douglas Homes ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 2.25% mean?
Smith Douglas Homes (SDHC) has a ROC (Joel Greenblatt) % of 2.25% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Smith Douglas Homes and its competitors. This is 95% below median its historical median of 46.08. Over the past decade, Smith Douglas Homes' ROC (Joel Greenblatt) % has ranged from 9.79 to 99.57. According to the industry distribution chart, Smith Douglas Homes ranks #973 out of 1756 companies in the Real Estate industry, placing it in the top 55.4%.
Is Smith Douglas Homes' ROC (Joel Greenblatt) % too high?
Smith Douglas Homes' current ROC (Joel Greenblatt) % of 2.25% is 95% below median its 10-year median of 46.08. Over the past 10 years, this metric has ranged from a low of 9.79 to a high of 99.57. The Real Estate industry median ROC (Joel Greenblatt) % is 13.51. Smith Douglas Homes' value of 2.25% is 83.3% below this industry median. Based on the distribution chart, Smith Douglas Homes ranks #973 out of 1756 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' ROC (Joel Greenblatt) % compare to AXR and LPA?
According to the Real Estate industry distribution chart, Smith Douglas Homes ranks #973 out of 1756 companies for ROC (Joel Greenblatt) %. This places Smith Douglas Homes in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 13.51. Smith Douglas Homes' value of 2.25% is 83.3% below this benchmark. Historically, Smith Douglas Homes' own ROC (Joel Greenblatt) % has ranged from 9.79 to 99.57 over the past decade. While the company's 10-year median is 46.08 vs. the industry median of 13.51, 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 ROC (Joel Greenblatt) % for a Real Estate company?
The median ROC (Joel Greenblatt) % among Real Estate companies is 13.51, based on 1,756 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith Douglas Homes's current ROC (Joel Greenblatt) % of 2.25% is 83.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Smith Douglas Homes and its competitors. For the Real Estate industry, the median ROC (Joel Greenblatt) % is 13.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Douglas Homes's current ROC (Joel Greenblatt) % is 2.25%, which is 95% below median its own 10-year median of 46.08. 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 $13.99 — trading 51.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 2.25%, which is 95% below median its 10-year median of 46.08 and 83.3% below the Real Estate industry median of 13.51. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Smith Douglas Homes (SDHC), the current ROC (Joel Greenblatt) % is 2.25% 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:
ROC (Joel Greenblatt) %: 2.25% (95% below median its 10-year median of 46.08)
GF Value™: $29.09 vs. price of $13.99 (51.9% below fair value)
Industry Position: 83.3% below the Real Estate median (#973 of 1756)
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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