Smith Douglas Homes Corp.

SDHCdata completeness 88%3 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Smith Douglas Homes Corp. earns about 125% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $18.07 and $33.24 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$764.6M1$975.5M2$971.1M2
Net income$123.2M3$16.1M4$10.7M4
Operating cash flow$76.3M5$19.1M6−$31.3M6
Capital expenditure$1.31M7$3.89M8$5.52M8
Free cash flow (derived)$74.9M5$15.2M6−$36.9M6
Total debt
Cash & equivalents$19.8M9$22.4M10$12.7M10
Diluted shares9.1M9.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$94.13
your share of equity
Profit it earned you last year
$11.61
Free cash flow it threw off
−$40.01
Debt you’d be carrying

10 shares is a claim on $94.13 of net worth that earned you $11.61 and generated −$40.01 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
125% avg · 3y
FY23 65%FY24 218%FY25 92%

It earned about 125% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+2% shares · 3y

Share count is roughly flat over 3 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $18.07 and $33.24 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$33.24
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$15.2M
DCF · Growth Exit 5Y
$30.75
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$15.2M
Earnings Power Value
$18.07
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$16.1M
  • growthAssumed0.0%
Graham Number
$15.88
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $30.75
The three cases
Bear0.0%$25.02
Base5.0%$30.75
Bull10.0%$37.59

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2023-12-31 · accession 0001982518-25-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-12-31 · accession 0001628280-26-017245 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001982518-25-000007 (ProfitLoss)
  4. 10-K · period ending 2024-12-31 · accession 0001628280-26-017245 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001982518-25-000007 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2024-12-31 · accession 0001628280-26-017245 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001982518-25-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2024-12-31 · accession 0001628280-26-017245 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-12-31 · accession 0001982518-25-000007 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K · period ending 2024-12-31 · accession 0001628280-26-017245 (CashAndCashEquivalentsAtCarryingValue)