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HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis

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

131.65  -1.58 (-1.19%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to HOV. HOV was compared to 63 industry peers in the Household Durables industry. While HOV belongs to the best of the industry regarding profitability, there are 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.
In the past year HOV has reported a negative cash flow from operations.
HOV had positive earnings in each of the past 5 years.
In the past 5 years HOV always reported a positive cash flow from operatings.
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 better Return On Assets (7.79%) than 61.90% of its industry peers.
HOV's Return On Equity of 24.23% is amongst the best of the industry. HOV outperforms 92.06% of its industry peers.
With an excellent Return On Invested Capital value of 15.82%, HOV belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HOV is above the industry average of 10.40%.
The last Return On Invested Capital (15.82%) for HOV is above the 3 year average (13.99%), which is a sign of increasing profitability.
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 of 6.49%. This is comparable to the rest of the industry: HOV outperforms 58.73% of its industry peers.
In the last couple of years the Profit Margin of HOV has declined.
HOV has a Operating Margin of 10.93%. This is in the better half of the industry: HOV outperforms 68.25% of its industry peers.
HOV's Operating Margin has improved in the last couple of years.
HOV has a worse Gross Margin (20.10%) than 79.37% 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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3

2. Health

2.1 Basic Checks

HOV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HOV has less shares outstanding
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

An Altman-Z score of 2.41 indicates that HOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.41, HOV is in line with its industry, outperforming 41.27% of the companies in the same industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that HOV has dependencies on debt financing.
With a Debt to Equity ratio value of 1.15, HOV is not doing good in the industry: 79.37% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF N/A
Altman-Z 2.41
ROIC/WACC2.04
WACC7.75%
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.
Looking at the Current ratio, with a value of 2.06, HOV is doing worse than 60.32% of the companies in the same 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's Quick ratio of 0.11 is on the low side compared to the rest of the industry. HOV is outperformed by 96.83% 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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2

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%.
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 a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.82%.
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)-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 -49.43% on average per year.
Based on estimates for the next years, HOV will show a small growth in Revenue. The Revenue will grow by 1.24% on average per year.
EPS Next Y-61.94%
EPS Next 2Y-49.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y1.24%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.61, the valuation of HOV can be described as very cheap.
Based on the Price/Earnings ratio, HOV is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
HOV is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.11 indicates a correct valuation of HOV.
HOV's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HOV to the average of the S&P500 Index (34.09), we can say HOV is valued rather cheaply.
Industry RankSector Rank
PE 4.61
Fwd PE 16.11
HOV Price Earnings VS Forward Price EarningsHOV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HOV indicates a rather cheap valuation: HOV is cheaper than 96.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.77
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 -49.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-49.43%
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 (8/11/2025, 10:33:01 AM)

131.65

-1.58 (-1.19%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)05-20 2025-05-20/bmo
Earnings (Next)09-04 2025-09-04
Inst Owners64.34%
Inst Owner Change-1.1%
Ins Owners3.32%
Ins Owner Change-0.63%
Market Cap763.57M
Analysts45
Price Target122.4 (-7.03%)
Short Float %6.05%
Short Ratio1.62
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)0%
EPS NQ rev (3m)15.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
Industry RankSector Rank
PE 4.61
Fwd PE 16.11
P/S 0.25
P/FCF N/A
P/OCF N/A
P/B 0.93
P/tB 0.93
EV/EBITDA 4.77
EPS(TTM)28.55
EY21.69%
EPS(NY)8.17
Fwd EY6.21%
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 2.41
F-Score3
WACC7.75%
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-61.94%
EPS Next 2Y-49.43%
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 Year0%
Revenue Next 2Y1.24%
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