Is Smith Douglas Homes Corp. (SDHC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 9.6% / 30% | 17.7% / 30% | 11.8% / 30% | 0.02% / 5% | ✓ HALAL |
| DJIM | 9.6% / 33% | 17.7% / 33% | 11.8% / 33% | 0.02% / 5% | ✓ HALAL |
| MSCI | 2.5% / 33% | 4.7% / 33% | 3.1% / 33% | 0.02% / 5% | ✓ HALAL |
| S&P | 9.6% / 33% | 17.7% / 33% | 11.8% / 33% | 0.02% / 5% | ✓ HALAL |
| FTSE | 2.5% / 33% | 4.7% / 33% | 3.1% / 50% | 0.02% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 21.8% | |
| Operating Margin | 6.0% | |
| Net Margin | 1.1% | |
| Return on Equity (ROE) | 16.2% | |
| Return on Assets (ROA) | 8.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$31M |
| Free Cash Flow | -$37M |
| Total Debt | $74M |
| Debt-to-Equity | 10.4 |
| Current Ratio | 20.1 |
| Total Assets | $558M |
Price & Trading
| Last Close | $12.23 |
| 50-Day MA | $16.18 |
| 200-Day MA | $18.14 |
| Avg Volume | 111K |
| Beta | 1.1 |
|
52-Week Range
$11.13
| |
About Smith Douglas Homes Corp. (SDHC)
Headquartered in Woodstock, Georgia, Smith Douglas Homes completed its initial public offering in January 2024. Since its inception, Smith Douglas has been entrusted by over 20,000 families to fulfill their new home dreams. Ranked a top 50 builder nationally for several years and with 2,908 closings in 2025, Smith Douglas currently holds the #32 position on the Builder Magazine Top 100 list. The Smith Douglas communities are primarily targeted to entry-level and empty-nest homebuyers looking to purchase a new home priced below the Federal Housing Administration loan limit in the metro areas of Atlanta, Birmingham, Central Georgia, Charlotte, Chattanooga, Dallas-Fort Worth, Greenville, Houston, Huntsville, Nashville, Raleigh, and the Alabama Gulf Coast. Smith Douglas offers its homebuyers a personalized, affordable buying experience at attractive prices, delivering exceptional value and quality. Smith Douglas Homes Corp. was incorporated in Delaware, USA.
Purification Calculator
As a halal stock with 0.02% impermissible income, you need to purify your dividends.
Related Halal Stocks in Real Estate
Frequently Asked Questions
Is Smith Douglas Homes Corp. (SDHC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Smith Douglas Homes Corp. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Smith Douglas Homes Corp.'s debt ratio?
Smith Douglas Homes Corp.'s debt ratio is 9.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.5%.
Does Smith Douglas Homes Corp. require dividend purification?
Yes, Smith Douglas Homes Corp. has an impermissible income ratio of 0.02%, which means 0.02% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Smith Douglas Homes Corp.'s key financial metrics?
Smith Douglas Homes Corp. has a market capitalization of $109M, trailing P/E ratio of 10.1, and revenue of $971M. The company maintains a gross margin of 21.8% and a net margin of 1.1%. Return on equity stands at 16.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.