HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis
USA - NYSE:HOV - US4424874018 - Common Stock
151.86 USD
-3.85 (-2.47%)
151.86 USD
0 (0%)
HOV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. HOV scores excellent on profitability, but there are concerns on its financial health. HOV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HOV was profitable.
HOV had a negative operating cash flow in the past year.
HOV had positive earnings in each of the past 5 years.
Each year in the past 5 years HOV had a positive operating cash flow.
1.2 Ratios
HOV has a Return On Assets of 7.79%. This is in the better half of the industry: HOV outperforms 63.49% of its industry peers.
HOV has a better Return On Equity (24.23%) than 93.65% of its industry peers.
HOV has a Return On Invested Capital of 15.82%. This is amongst the best in the industry. HOV outperforms 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HOV is above the industry average of 10.51%.
The 3 year average ROIC (13.99%) for HOV is below the current ROIC(15.82%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
HOV has a better Profit Margin (6.49%) than 61.90% of its industry peers.
HOV's Profit Margin has declined in the last couple of years.
HOV's Operating Margin of 10.93% is fine compared to the rest of the industry. HOV outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of HOV has grown nicely.
The Gross Margin of HOV (20.10%) is worse than 80.95% of its industry peers.
In the last couple of years the Gross Margin of HOV has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HOV is creating value.
Compared to 1 year ago, HOV has less shares outstanding
HOV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HOV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.45 indicates that HOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
HOV's Altman-Z score of 2.45 is in line compared to the rest of the industry. HOV outperforms 41.27% of its industry peers.
HOV has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HOV (1.15) is worse than 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC1.99
WACC7.97%
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.
With a Current ratio value of 2.06, HOV is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
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 96.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.11 |
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.
The Revenue has grown by 9.03% in the past year. This is quite good.
The Revenue has been growing by 8.30% on average over the past years. This is quite good.
EPS 1Y (TTM)-40.14%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%-79.59%
Revenue 1Y (TTM)9.03%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%10.78%
3.2 Future
HOV is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -49.43% yearly.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y-61.94%
EPS Next 2Y-49.43%
EPS Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.30, the valuation of HOV can be described as very cheap.
90.48% of the companies in the same industry are more expensive than HOV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HOV to the average of the S&P500 Index (27.30), we can say HOV is valued rather cheaply.
The Price/Forward Earnings ratio is 18.59, which indicates a rather expensive current valuation of HOV.
HOV's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, HOV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
HOV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HOV is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.12 |
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 -49.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-49.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HOV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
151.86
-3.85 (-2.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners64.34%
Inst Owner Change-0.48%
Ins Owners3.32%
Ins Owner Change-0.54%
Market Cap894.46M
Analysts45
Price Target122.4 (-19.4%)
Short Float %7.41%
Short Ratio2.04
Dividend
| Industry Rank | Sector 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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 18.59 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)20.79
EY13.69%
EPS(NY)8.17
Fwd EY5.38%
FCF(TTM)-4.76
FCFYN/A
OCF(TTM)-1.7
OCFYN/A
SpS519.94
BVpS139.28
TBVpS139.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.45 |
F-Score3
WACC7.97%
ROIC/WACC1.99
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-61.94%
EPS Next 2Y-49.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.03%
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-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