Stock fact sheet · data as of
Smith Douglas Homes Corp. (SDHC): fair value, margin of safety and Wheel Score
Consumer Cyclical · Residential Construction · United States · Value
Is SDHC undervalued?
SDHC has a margin of safety of 75%: the stock closed at 9.78 on 16 Oct 2026 against a GLS average fair value of 39.57. 6 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: GLS Growth gives 2.09 while DCF gives 142.76. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files SDHC under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for SDHC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 142.76 | +1360% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 11.87 | +21% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 28.56 | +192% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 11.57 | +18% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.09 | -79% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 77.57 | +693% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 34.18 | +249% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 7.93 | -19% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 42.62 | +336% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 15.00 | +53% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - SDHC passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 6.6%, ROE 12.3%, ROA 1.9% - with debt at 0.85 times equity and a free-cash-flow yield of 41.2%.
Smith Douglas Homes Corp. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Central 100% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 6.6% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 12.3% |
| Debt / equity | 0.85 | ROA | 1.9% |
| Free-cash-flow yield | 41.2% | Payout ratio | 646% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 39: No options
SDHC has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 29k shares a day on a market cap of $82M, with a beta of 0.90; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 75% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 29k shares/day, $82M cap, beta 0.90 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (before the open), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Residential Construction
The 12 companies below are the closest to Smith Douglas Homes Corp. by market cap within the Residential Construction industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NOBH Nobility Homes, Inc. | 27.50 | 46.09 | +40% | 39No options | $87M |
| VNJA Vanjia Corporation | 5.50 | 0.0021 | -263525% | 11No options | $165M |
| HOVVB Hovnanian Enterprises, Inc. | 97.00 | 157.26 | +38% | 39No options | $517M |
| HOV Hovnanian Enterprises, Inc. | 100.93 | 156.95 | +36% | 39No options | $517M |
| LEGH Legacy Housing Corporation | 27.24 | 45.55 | +40% | 72Good | $648M |
| DFH Dream Finders Homes, Inc. | 8.44 | 19.15 | +56% | 72Good | $767M |
| BZH Beazer Homes USA, Inc. | 33.41 | 25.56 | -31% | 45Weak | $891M |
| LGIH LGI Homes, Inc. | 44.08 | 92.94 | +53% | 72Good | $1.0B |
| SPHL Springview Holdings Ltd Class A Ordinary Shares | 2.31 | - | - | 23No options | $5M |
| CCS Century Communities, Inc. | 55.55 | 55.18 | -1% | 59Fair | $1.6B |
| HOVNP Hovnanian Enterprises, Inc. PFD DEP1/1000A | 16.85 | 130.60 | +87% | 39No options | $2.5B |
| KBH KB Home | 43.65 | 62.28 | +30% | 80Prime | $2.7B |
⚖ Compare SDHC with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about SDHC
Is SDHC undervalued right now?
By the GLS models, yes: at 9.78 the stock is 75% below the average fair value of 39.57 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SDHC and what does it mean?
SDHC has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for SDHC?
39.57 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Smith Douglas Homes Corp. report earnings next?
The next earnings report is due on 4 Nov 2026 (before the open), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SDHC have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on SDHC, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.