HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis
USA - NYSE:HOV - US4424874018 - Common Stock
122.33 USD
+2.1 (+1.75%)
122.33 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HOV. HOV was compared to 61 industry peers in the Household Durables industry. HOV has only an average score on both its financial health and profitability. HOV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HOV had positive earnings in the past year.
HOV had a positive operating cash flow in the past year.
Each year in the past 5 years HOV has been profitable.
Each year in the past 5 years HOV had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 6.40%, HOV perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
HOV has a Return On Equity of 20.15%. This is amongst the best in the industry. HOV outperforms 88.52% of its industry peers.
HOV's Return On Invested Capital of 11.98% is fine compared to the rest of the industry. HOV outperforms 77.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HOV is above the industry average of 10.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 20.15% | ||
| ROIC | 11.98% |
ROA(3y)7.79%
ROA(5y)9.92%
ROE(3y)36.53%
ROE(5y)N/A
ROIC(3y)13.99%
ROIC(5y)12.81%
1.3 Margins
Looking at the Profit Margin, with a value of 4.41%, HOV is in line with its industry, outperforming 50.82% of the companies in the same industry.
In the last couple of years the Profit Margin of HOV has declined.
HOV has a Operating Margin (8.58%) which is in line with its industry peers.
HOV's Operating Margin has improved in the last couple of years.
The Gross Margin of HOV (18.90%) is worse than 80.33% of its industry peers.
HOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.58% | ||
| PM (TTM) | 4.41% | ||
| GM | 18.9% |
OM growth 3Y2.01%
OM growth 5Y17.48%
PM growth 3Y-27.87%
PM growth 5YN/A
GM growth 3Y0.84%
GM growth 5Y5.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HOV is creating some value.
Compared to 1 year ago, HOV has less shares outstanding
The number of shares outstanding for HOV has been reduced compared to 5 years ago.
Compared to 1 year ago, HOV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that HOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.80, HOV perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
The Debt to FCF ratio of HOV is 8.06, which is on the high side as it means it would take HOV, 8.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HOV (8.06) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.10 is on the high side and indicates that HOV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.10, HOV is doing worse than 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.47
WACC8.14%
2.3 Liquidity
HOV has a Current Ratio of 3.82. This indicates that HOV is financially healthy and has no problem in meeting its short term obligations.
HOV's Current ratio of 3.82 is fine compared to the rest of the industry. HOV outperforms 67.21% of its industry peers.
HOV has a Quick Ratio of 3.82. This is a bad value and indicates that HOV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.36, HOV is not doing good in the industry: 91.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for HOV have decreased strongly by -40.14% in the last year.
HOV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.20% yearly.
HOV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
HOV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.30% yearly.
EPS 1Y (TTM)-40.14%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%-79.59%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%10.78%
3.2 Future
The Earnings Per Share is expected to decrease by -48.94% on average over the next years. This is quite bad
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y-72.62%
EPS Next 2Y-92.67%
EPS Next 3Y-48.94%
EPS Next 5YN/A
Revenue Next Year-0.4%
Revenue Next 2Y3.13%
Revenue Next 3Y3.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.88 indicates a rather cheap valuation of HOV.
HOV's Price/Earnings ratio is rather cheap when compared to the industry. HOV is cheaper than 91.80% of the companies in the same industry.
HOV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 712.46, the valuation of HOV can be described as expensive.
HOV's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HOV is more expensive than 72.13% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, HOV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 712.46 |
4.2 Price Multiples
93.44% of the companies in the same industry are more expensive than HOV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HOV is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
The decent profitability rating of HOV may justify a higher PE ratio.
A cheap valuation may be justified as HOV's earnings are expected to decrease with -48.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-92.67%
EPS Next 3Y-48.94%
5. Dividend
5.1 Amount
HOV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
122.33
+2.1 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners63.17%
Inst Owner Change2.99%
Ins Owners3.28%
Ins Owner Change-0.54%
Market Cap720.52M
Revenue(TTM)3.81B
Net Income(TTM)168.30M
Analysts45
Price Target122.4 (0.06%)
Short Float %6.26%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.76
Dividend Growth(5Y)8.98%
DP6.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.83%
Min EPS beat(2)-43.87%
Max EPS beat(2)-1.8%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-7.3%
Max Revenue beat(2)-1.07%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 712.46 | ||
| P/S | 0.19 | ||
| P/FCF | 6.34 | ||
| P/OCF | 5.34 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)20.79
EY17%
EPS(NY)0.17
Fwd EY0.14%
FCF(TTM)19.29
FCFY15.77%
OCF(TTM)22.93
OCFY18.74%
SpS647.53
BVpS141.83
TBVpS141.83
PEG (NY)N/A
PEG (5Y)N/A
Graham Number257.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 20.15% | ||
| ROCE | 15.29% | ||
| ROIC | 11.98% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 14.09% | ||
| OM | 8.58% | ||
| PM (TTM) | 4.41% | ||
| GM | 18.9% | ||
| FCFM | 2.98% |
ROA(3y)7.79%
ROA(5y)9.92%
ROE(3y)36.53%
ROE(5y)N/A
ROIC(3y)13.99%
ROIC(5y)12.81%
ROICexc(3y)16.7%
ROICexc(5y)15.21%
ROICexgc(3y)18.6%
ROICexgc(5y)17.04%
ROCE(3y)17.85%
ROCE(5y)16.34%
ROICexgc growth 3Y-0.28%
ROICexgc growth 5Y20.6%
ROICexc growth 3Y0.26%
ROICexc growth 5Y21.31%
OM growth 3Y2.01%
OM growth 5Y17.48%
PM growth 3Y-27.87%
PM growth 5YN/A
GM growth 3Y0.84%
GM growth 5Y5.08%
F-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 202.89% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.98% | ||
| Profit Quality | 67.5% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 2.8 |
F-Score6
WACC8.14%
ROIC/WACC1.47
Cap/Depr(3y)224.68%
Cap/Depr(5y)169.9%
Cap/Sales(3y)0.57%
Cap/Sales(5y)0.41%
Profit Quality(3y)91.47%
Profit Quality(5y)187.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.14%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%-79.59%
EPS Next Y-72.62%
EPS Next 2Y-92.67%
EPS Next 3Y-48.94%
EPS Next 5YN/A
Revenue 1Y (TTM)8.77%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%10.78%
Revenue Next Year-0.4%
Revenue Next 2Y3.13%
Revenue Next 3Y3.71%
Revenue Next 5YN/A
EBIT growth 1Y-19.85%
EBIT growth 3Y4.66%
EBIT growth 5Y27.23%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.06%
FCF growth 3Y-69.53%
FCF growth 5YN/A
OCF growth 1Y-67.04%
OCF growth 3Y-51.73%
OCF growth 5YN/A
HOVNANIAN ENTERPRISES-A / HOV FAQ
What is the fundamental rating for HOV stock?
ChartMill assigns a fundamental rating of 4 / 10 to HOV.
What is the valuation status for HOV stock?
ChartMill assigns a valuation rating of 5 / 10 to HOVNANIAN ENTERPRISES-A (HOV). This can be considered as Fairly Valued.
Can you provide the profitability details for HOVNANIAN ENTERPRISES-A?
HOVNANIAN ENTERPRISES-A (HOV) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for HOV stock?
The Price/Earnings (PE) ratio for HOVNANIAN ENTERPRISES-A (HOV) is 5.88 and the Price/Book (PB) ratio is 0.86.
Is the dividend of HOVNANIAN ENTERPRISES-A sustainable?
The dividend rating of HOVNANIAN ENTERPRISES-A (HOV) is 0 / 10 and the dividend payout ratio is 6.34%.