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Smith Douglas HomesSDHC +0.07%33 ROE % is 1.22% as of Jun. 2026, which is 98% 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 1,740 Real Estate companies, Smith Douglas Homes ranks better than 65.46% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Smith Douglas Homes ROE % Related Terms
Smith Douglas Homes ROE % Historical Data
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The historical data trend for Smith Douglas Homes's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Smith Douglas Homes's ROE % distribution charts can be found below:
* The bar in red indicates where Smith Douglas Homes's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Smith Douglas Homes (SDHC) has a ROE % of 1.22% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Smith Douglas Homes and its competitors. This is 98% below median its historical median of 65.47. Over the past decade, Smith Douglas Homes' ROE % has ranged from 7.87 to 108.02. According to the industry distribution chart, Smith Douglas Homes ranks #601 out of 1740 companies in the Real Estate industry, placing it in the top 34.5%.
Is Smith Douglas Homes' ROE % too high?
Smith Douglas Homes' current ROE % of 1.22% is 98% below median its 10-year median of 65.47. Over the past 10 years, this metric has ranged from a low of 7.87 to a high of 108.02. The Real Estate industry median ROE % is 4.25. Smith Douglas Homes' value of 1.22% is 71.3% below this industry median. Based on the distribution chart, Smith Douglas Homes ranks #601 out of 1740 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' ROE % compare to AXR and LPA?
According to the Real Estate industry distribution chart, Smith Douglas Homes ranks #601 out of 1740 companies for ROE %. This puts Smith Douglas Homes in the upper half of its industry. The industry median ROE % is 4.25. Smith Douglas Homes' value of 1.22% is 71.3% below this benchmark. Historically, Smith Douglas Homes' own ROE % has ranged from 7.87 to 108.02 over the past decade. While the company's 10-year median is 65.47 vs. the industry median of 4.25, 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 ROE % for a Real Estate company?
The median ROE % among Real Estate companies is 4.25, based on 1,740 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith Douglas Homes's current ROE % of 1.22% is 71.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Smith Douglas Homes and its competitors. For the Real Estate industry, the median ROE % is 4.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Douglas Homes's current ROE % is 1.22%, which is 98% 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 ROE % is 1.22%, which is 98% below median its 10-year median of 65.47 and 71.3% below the Real Estate industry median of 4.25. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Smith Douglas Homes (SDHC), the current ROE % is 1.22% 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:
ROE %: 1.22% (98% 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: 71.3% below the Real Estate median (#601 of 1740)
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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