NASDAQ:FROG.O News 31 December 2025

January 30, 2026, 6:44 AM EST. Smith Douglas Homes Corp. (NYSE:SDHC) shares dropped 11% recently amid a 46% net income decline. However, the company's return on equity (ROE) stands at 19%, surpassing the industry average of 14%. ROE measures profit generated per shareholder dollar, indicating efficient management of investor funds. Despite earnings shrinkage, Smith Douglas Homes maintains a strong ROE, suggesting some financial resilience. The industry has grown earnings by 5% over five years, contrasting with Smith Douglas Homes' decline. Investors should consider these factors to assess if the stock's recent weakness presents a long-term buying opportunity or reflects deeper challenges.