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HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis

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

87.89  -1.43 (-1.6%)

After market: 87.89 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to HOV. HOV was compared to 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 has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year HOV was profitable.
HOV had a positive operating cash flow in the past year.
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 (9.81%) than 71.88% of its industry peers.
Looking at the Return On Equity, with a value of 30.61%, HOV belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.58%, HOV belongs to the best of the industry, outperforming 90.63% 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 11.93%.
The 3 year average ROIC (13.99%) for HOV is below the current ROIC(18.58%), indicating increased profibility in the last year.
Industry RankSector 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%
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

The Profit Margin of HOV (6.75%) is comparable to the rest of the industry.
HOV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.16%, HOV is doing good in the industry, outperforming 60.94% of the companies in the same industry.
In the last couple of years the Operating Margin of HOV has grown nicely.
HOV has a Gross Margin of 21.01%. This is in the lower half of the industry: HOV underperforms 75.00% of its industry peers.
HOV's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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

4

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
Compared to 5 years ago, HOV has less shares outstanding
Compared to 1 year ago, HOV has an improved debt to assets ratio.
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 2.72 indicates that HOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
HOV has a Altman-Z score (2.72) 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.
With a Debt to FCF ratio value of 24.13, HOV is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
HOV has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HOV (1.21) is worse than 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 24.13
Altman-Z 2.72
ROIC/WACC2.42
WACC7.67%
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 2.29. This indicates that HOV is financially healthy and has no problem in meeting its short term obligations.
HOV has a Current ratio (2.29) which is in line with its industry peers.
A Quick Ratio of 0.21 indicates that HOV may have some problems paying its short term obligations.
The Quick ratio of HOV (0.21) is worse than 96.88% of its industry peers.
Industry RankSector Rank
Current Ratio 2.29
Quick Ratio 0.21
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

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 quite strong growth in Revenue. The Revenue has grown by 9.03% in the last year.
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)-11.77%
EPS 3Y-28.2%
EPS 5YN/A
EPS Q2Q%-63.51%
Revenue 1Y (TTM)9.03%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%-3.09%

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 -33.45% yearly.
The Revenue is expected to grow by 1.95% on average over the next years.
EPS Next Y-59.32%
EPS Next 2Y-33.45%
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 stable: in the next years the growth will be about the same 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.
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

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.08, the valuation of HOV can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of HOV indicates a rather cheap valuation: HOV is cheaper than 96.88% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HOV to the average of the S&P500 Index (25.91), we can say HOV is valued rather cheaply.
HOV is valuated cheaply with a Price/Forward Earnings ratio of 6.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOV indicates a rather cheap valuation: HOV is cheaper than 84.38% of the companies listed in the same industry.
HOV is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.08
Fwd PE 6.21
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 95.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HOV is valued a bit cheaper than 71.88% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.8
EV/EBITDA 3.38
HOV Per share dataHOV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 200 400 600

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 -33.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.45%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

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

HOVNANIAN ENTERPRISES-A

NYSE:HOV (5/22/2025, 8:10:47 PM)

After market: 87.89 0 (0%)

87.89

-1.43 (-1.6%)

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 Owners67.1%
Inst Owner Change-5.09%
Ins Owners3.51%
Ins Owner Change0.56%
Market Cap509.76M
Analysts45
Price Target122.4 (39.26%)
Short Float %4.86%
Short Ratio3.04
Dividend
Industry RankSector 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)-67.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-56.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.61%
Valuation
Industry RankSector Rank
PE 3.08
Fwd PE 6.21
P/S 0.14
P/FCF 12.8
P/OCF 9.17
P/B 0.64
P/tB 0.64
EV/EBITDA 3.38
EPS(TTM)28.55
EY32.48%
EPS(NY)14.15
Fwd EY16.1%
FCF(TTM)6.87
FCFY7.82%
OCF(TTM)9.59
OCFY10.91%
SpS621.38
BVpS137.07
TBVpS137.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.72
F-Score6
WACC7.67%
ROIC/WACC2.42
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)9.03%
Revenue growth 3Y2.59%
Revenue growth 5Y8.3%
Sales Q2Q%-3.09%
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