Smith Douglas Homes Corp. cash flow to debt ratio of -42.26% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Smith Douglas Homes Corp.'s free cash flow has decreased -341.79% from $15.24M last year to $-36.86M, signaling decreasing performance

Smith Douglas Homes Corp.'s debt to equity ratio is 0.86, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Smith Douglas Homes Corp.'s debt has increased relative to shareholder equity from 0.16 last year to 0.86 today, signaling weakened financials

Smith Douglas Homes Corp. has a net debt to EBITDA ratio of 0.80x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Smith Douglas Homes Corp.'s interest coverage ratio of 16.71 indicates that earnings with good margin can cover interest payments on company debt

Smith Douglas Homes Corp.'s profit margin has decreased (-45.37%) in the last year from 1.65% to 0.90%, signaling decreasing performance

Smith Douglas Homes Corp.'s short-term assets of $471.13M exceed its short-term liabilities of $25.27M

Smith Douglas Homes Corp.'s return on assets of 1.43% is lower than the 5.00% threshold, indicating inefficient asset utilization

Smith Douglas Homes Corp.'s return on equity of 10.37%, is lower than 15.00%, indicating bad performance

Smith Douglas Homes Corp.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Smith Douglas Homes Corp. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Smith Douglas Homes Corp. has negative free cash flow, indicating the company is burning cash rather than generating it

Smith Douglas Homes Corp. has negative free cash flow, indicating cash burn

Smith Douglas Homes Corp.'s yearly earnings has decreased -33.45% since last year from $16.07M to $10.69M, signaling decreasing performance

Smith Douglas Homes Corp.'s yearly revenue has decreased -0.45% since last year from $975.46M to $971.12M, signaling decreasing performance

ROIC 9.97% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Smith Douglas Homes Corp.'s 3-year revenue CAGR of 8.74% is positive, indicating growing revenue over the past 3 years

Smith Douglas Homes Corp. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Smith Douglas Homes Corp. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Smith Douglas Homes Corp. has insufficient data to evaluate this check.

Smith Douglas Homes Corp. has an earnings yield of 6.49%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Smith Douglas Homes Corp. is undervalued relative to its fair value price of 54.50 based on EBITDA multiple model

Smith Douglas Homes Corp. has an EV/EBITDA ratio of 2.65x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Smith Douglas Homes Corp. has insufficient data to evaluate this check.

Smith Douglas Homes Corp. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Smith Douglas Homes Corp. has a price-to-book ratio of 1.61x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Smith Douglas Homes Corp. has a price-to-sales ratio of 0.13x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue