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HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis

NYSE:HOV - New York Stock Exchange, Inc. - US4424874018 - Common Stock - Currency: USD

95.37  +1.11 (+1.18%)

Fundamental Rating

5

HOV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. HOV has an excellent profitability rating, but there are some minor concerns on its financial health. HOV has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year HOV was profitable.
HOV had a negative operating cash flow in the past year.
In the past 5 years HOV has always been profitable.
HOV had a positive operating cash flow in each of the past 5 years.
HOV Yearly Net Income VS EBIT VS OCF VS FCFHOV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

HOV has a Return On Assets of 7.79%. This is in the better half of the industry: HOV outperforms 60.94% of its industry peers.
HOV's Return On Equity of 24.23% is amongst the best of the industry. HOV outperforms 92.19% of its industry peers.
The Return On Invested Capital of HOV (15.82%) is better than 85.94% of its industry peers.
HOV had an Average Return On Invested Capital over the past 3 years of 13.99%. This is above the industry average of 10.33%.
The 3 year average ROIC (13.99%) for HOV is below the current ROIC(15.82%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.79%
ROE 24.23%
ROIC 15.82%
ROA(3y)7.79%
ROA(5y)9.92%
ROE(3y)36.53%
ROE(5y)N/A
ROIC(3y)13.99%
ROIC(5y)12.81%
HOV Yearly ROA, ROE, ROICHOV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

HOV has a Profit Margin (6.49%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HOV has declined.
HOV has a better Operating Margin (10.93%) than 60.94% of its industry peers.
HOV's Operating Margin has improved in the last couple of years.
The Gross Margin of HOV (20.10%) is worse than 78.13% of its industry peers.
HOV's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.93%
PM (TTM) 6.49%
GM 20.1%
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%
HOV Yearly Profit, Operating, Gross MarginsHOV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HOV is creating value.
HOV has less shares outstanding than it did 1 year ago.
HOV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HOV has been reduced compared to a year ago.
HOV Yearly Shares OutstandingHOV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M
HOV Yearly Total Debt VS Total AssetsHOV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

HOV has an Altman-Z score of 2.33. This is not the best score and indicates that HOV is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of HOV (2.33) is comparable to the rest of the industry.
HOV has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.15, HOV is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF N/A
Altman-Z 2.33
ROIC/WACC2.04
WACC7.77%
HOV Yearly LT Debt VS Equity VS FCFHOV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

HOV has a Current Ratio of 2.06. This indicates that HOV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HOV (2.06) is comparable to the rest of the industry.
HOV has a Quick Ratio of 2.06. This is a bad value and indicates that HOV is not financially healthy enough and could expect problems in meeting its short term obligations.
HOV has a Quick ratio of 0.11. This is amonst the worse of the industry: HOV underperforms 96.88% of its industry peers.
Industry RankSector Rank
Current Ratio 2.06
Quick Ratio 0.11
HOV Yearly Current Assets VS Current LiabilitesHOV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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3

3. Growth

3.1 Past

HOV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.77%.
Measured over the past years, HOV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.20% on average per year.
Looking at the last year, HOV shows a very negative growth in Revenue. The Revenue has decreased by -10.82% in the last year.
The Revenue has been growing by 8.30% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.77%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%-63.51%
Revenue 1Y (TTM)-10.82%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%-3.09%

3.2 Future

Based on estimates for the next years, HOV will show a very negative growth in Earnings Per Share. The EPS will decrease by -33.45% on average per year.
Based on estimates for the next years, HOV will show a small growth in Revenue. The Revenue will grow by 1.09% on average per year.
EPS Next Y-59.32%
EPS Next 2Y-33.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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.
HOV Yearly Revenue VS EstimatesHOV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
HOV Yearly EPS VS EstimatesHOV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 2026 0 20 -20

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 3.34, the valuation of HOV can be described as very cheap.
98.44% of the companies in the same industry are more expensive than HOV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. HOV is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.74, the valuation of HOV can be described as very cheap.
Based on the Price/Forward Earnings ratio, HOV is valued cheaper than 84.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HOV to the average of the S&P500 Index (22.19), we can say HOV is valued rather cheaply.
Industry RankSector Rank
PE 3.34
Fwd PE 6.74
HOV Price Earnings VS Forward Price EarningsHOV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HOV is valued cheaper than 98.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.11
HOV Per share dataHOV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200 300 400 500

4.3 Compensation for Growth

The decent profitability rating of HOV may justify a higher PE ratio.
HOV's earnings are expected to decrease with -33.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.45%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for HOV!.
Industry RankSector Rank
Dividend Yield N/A

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HOVNANIAN ENTERPRISES-A

NYSE:HOV (6/18/2025, 12:53:07 PM)

95.37

+1.11 (+1.18%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)05-20 2025-05-20/bmo
Earnings (Next)08-20 2025-08-20
Inst Owners64.65%
Inst Owner Change-5.23%
Ins Owners3.54%
Ins Owner Change-0.26%
Market Cap553.15M
Analysts45
Price Target122.4 (28.34%)
Short Float %4.65%
Short Ratio2.43
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend1.76
Dividend Growth(5Y)8.98%
DP5.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.52%
Min EPS beat(2)-1.8%
Max EPS beat(2)30.84%
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)-6.4%
Min Revenue beat(2)-7.3%
Max Revenue beat(2)-5.5%
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)15.08%
EPS NQ rev (3m)-59.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-56.97%
Revenue NQ rev (1m)8.64%
Revenue NQ rev (3m)8.64%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
Industry RankSector Rank
PE 3.34
Fwd PE 6.74
P/S 0.18
P/FCF N/A
P/OCF N/A
P/B 0.67
P/tB 0.67
EV/EBITDA 4.11
EPS(TTM)28.55
EY29.94%
EPS(NY)14.15
Fwd EY14.84%
FCF(TTM)-4.83
FCFYN/A
OCF(TTM)-1.73
OCFYN/A
SpS528.01
BVpS141.44
TBVpS141.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.79%
ROE 24.23%
ROCE 20.18%
ROIC 15.82%
ROICexc 16.56%
ROICexgc 18.44%
OM 10.93%
PM (TTM) 6.49%
GM 20.1%
FCFM N/A
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%
ROICexcg growth 3Y-0.28%
ROICexcg 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-Score3
Asset Turnover1.2
Health
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF N/A
Debt/EBITDA 2.74
Cap/Depr 190.49%
Cap/Sales 0.59%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.06
Quick Ratio 0.11
Altman-Z 2.33
F-Score3
WACC7.77%
ROIC/WACC2.04
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)-11.77%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%-63.51%
EPS Next Y-59.32%
EPS Next 2Y-33.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.82%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%-3.09%
Revenue Next Year-0.53%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.23%
EBIT growth 3Y4.66%
EBIT growth 5Y27.23%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-113.85%
FCF growth 3Y-69.53%
FCF growth 5YN/A
OCF growth 1Y-104.61%
OCF growth 3Y-51.73%
OCF growth 5YN/A