HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis
NYSE:HOV - New York Stock Exchange, Inc. - US4424874018 - Common Stock - Currency: USD
Overall HOV gets a fundamental rating of 5 out of 10. We evaluated HOV against 64 industry peers in the Household Durables industry. While HOV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HOV is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
HOV had positive earnings in the past year.
In the past year HOV had a positive cash flow from operations.
Each year in the past 5 years HOV has been profitable.
HOV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HOV's Return On Assets of 9.81% is fine compared to the rest of the industry. HOV outperforms 71.88% of its industry peers.
HOV's Return On Equity of 30.61% is amongst the best of the industry. HOV outperforms 90.63% of its industry peers.
HOV has a better Return On Invested Capital (18.58%) than 90.63% of its industry peers.
HOV had an Average Return On Invested Capital over the past 3 years of 13.99%. This is in line with the industry average of 12.29%.
The last Return On Invested Capital (18.58%) for HOV is above the 3 year average (13.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 30.61% | ||
| ROIC | 18.58% |
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
The Profit Margin of HOV (6.75%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HOV has declined.
HOV's Operating Margin of 11.16% is fine compared to the rest of the industry. HOV outperforms 64.06% of its industry peers.
In the last couple of years the Operating Margin of HOV has grown nicely.
The Gross Margin of HOV (21.01%) is worse than 75.00% of its industry peers.
HOV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.16% | ||
| PM (TTM) | 6.75% | ||
| GM | 21.01% |
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
HOV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for HOV has been reduced compared to 1 year ago.
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
HOV has an Altman-Z score of 2.73. 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.
HOV has a Altman-Z score (2.73) which is in line with its industry peers.
The Debt to FCF ratio of HOV is 24.13, which is on the high side as it means it would take HOV, 24.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.13, HOV is doing worse than 64.06% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that HOV has dependencies on debt financing.
The Debt to Equity ratio of HOV (1.21) is worse than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 24.13 | ||
| Altman-Z | 2.73 |
ROIC/WACC2.49
WACC7.46%
2.3 Liquidity
A Current Ratio of 2.29 indicates that HOV has no problem at all paying its short term obligations.
HOV has a Current ratio of 2.29. This is comparable to the rest of the industry: HOV outperforms 51.56% of its industry peers.
A Quick Ratio of 0.21 indicates that HOV may have some problems paying its short term obligations.
With a Quick ratio value of 0.21, HOV is not doing good in the industry: 96.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.65% over the past 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.
The Revenue has grown by 29.76% in the past year. This is a very strong growth!
Measured over the past years, HOV shows a quite strong growth in Revenue. The Revenue has been growing by 8.30% on average per year.
EPS 1Y (TTM)8.65%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%30.18%
Revenue 1Y (TTM)29.76%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%13.37%
3.2 Future
The Earnings Per Share is expected to grow by 2.67% on average over the next years.
The Revenue is expected to grow by 1.95% on average over the next years.
EPS Next Y-59.32%
EPS Next 2Y2.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.53%
Revenue Next 2Y1.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 2.95 indicates a rather cheap valuation of HOV.
Based on the Price/Earnings ratio, HOV is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.98, HOV is valued rather cheaply.
The Price/Forward Earnings ratio is 2.87, which indicates a rather cheap valuation of HOV.
95.31% of the companies in the same industry are more expensive than HOV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HOV to the average of the S&P500 Index (21.38), we can say HOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.95 | ||
| Fwd PE | 2.87 |
4.2 Price Multiples
93.75% 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 a bit cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.09 | ||
| EV/EBITDA | 3.48 |
4.3 Compensation for Growth
The decent profitability rating of HOV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HOV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.8
+0.26 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners67.1%
Inst Owner Change0.35%
Ins Owners3.51%
Ins Owner Change0.56%
Market Cap573.06M
Analysts45
Price Target122.4 (26.45%)
Short Float %4.99%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.76
Dividend Growth(5Y)8.98%
DP4.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)-22.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-56.97%
EPS NY rev (3m)-56.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.95 | ||
| Fwd PE | 2.87 | ||
| P/S | 0.16 | ||
| P/FCF | 14.09 | ||
| P/OCF | 10.1 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 3.48 |
EPS(TTM)32.78
EY33.86%
EPS(NY)33.68
Fwd EY34.79%
FCF(TTM)6.87
FCFY7.1%
OCF(TTM)9.59
OCFY9.91%
SpS621.38
BVpS137.07
TBVpS137.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 30.61% | ||
| ROCE | 23.71% | ||
| ROIC | 18.58% | ||
| ROICexc | 19.65% | ||
| ROICexgc | 21.83% | ||
| OM | 11.16% | ||
| PM (TTM) | 6.75% | ||
| GM | 21.01% | ||
| FCFM | 1.11% |
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-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 24.13 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 191.01% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.55% | ||
| Profit Quality | 16.37% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 2.73 |
F-Score6
WACC7.46%
ROIC/WACC2.49
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)8.65%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%30.18%
EPS Next Y-59.32%
EPS Next 2Y2.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)29.76%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%13.37%
Revenue Next Year-1.53%
Revenue Next 2Y1.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.52%
EBIT growth 3Y4.66%
EBIT growth 5Y27.23%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-74.62%
FCF growth 3Y-69.53%
FCF growth 5YN/A
OCF growth 1Y-67.38%
OCF growth 3Y-51.73%
OCF growth 5YN/A