Smith Douglas Homes Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Smith Douglas Homes Corp.

Why is Smith Douglas Homes Corp. ?

The company has declared negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD -35.47 MM
INTEREST COVERAGE RATIO(Q) Lowest at 2,307.9
RAW MATERIAL COST(Y) Grown by 13.76% (YoY)

With ROE of 143.18%, it has a expensive valuation with a 2.25 Price to Book Value

Over the past year, while the stock has generated a return of -34.27%, its profits have fallen by -9%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.27% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Smith Douglas Homes Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Smith Douglas Homes Corp.

-29.21%

-0.24

56.07%

S&P 500

12.95%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.80%

EBIT Growth (5y)

-19.50%

EBIT to Interest (avg)

51.69

Debt to EBITDA (avg)

0.13

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

8.22

Tax Ratio

4.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

242.76%

ROE (avg)

167.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.65

EV to EBIT

8.43

EV to EBITDA

8.27

EV to Capital Employed

6.62

EV to Sales

0.90

PEG Ratio

Dividend Yield

ROCE (Latest)

78.49%

ROE (Latest)

127.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -35.61 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 2,180.62

PRE-TAX PROFIT(Q)

At USD 18.82 MM has Fallen at -52.47%

INTEREST(HY)

At USD 1.67 MM has Grown at 38.59%

OPERATING PROFIT MARGIN(Q)

Lowest at 7.47 %

RAW MATERIAL COST(Y)

Grown by 21.71% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 49.91 %

NET PROFIT(Q)

Fallen at -32.44%

EPS(Q)

Lowest at USD 0.24

Here's what is not working for Smith Douglas Homes Corp.

Interest Coverage Ratio

Lowest at 2,180.62 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 18.82 MM has Fallen at -52.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD -35.61 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 7.47 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

At USD 1.67 MM has Grown at 38.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Fallen at -32.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 49.91 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 21.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales