HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HOV - US4424874018 - Common Stock
99.87 USD
+0.51 (+0.51%)
99.87 USD
0 (0%)
Overall HOV gets a fundamental rating of 3 out of 10. We evaluated HOV against 60 industry peers in the Household Durables industry. While HOV is still in line with the averages on profitability rating, 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
HOV had positive earnings in the past year.
In the past year HOV had a positive cash flow from operations.
Of the past 5 years HOV 4 years were profitable.
Of the past 5 years HOV 4 years had a positive operating cash flow.
1.2 Ratios
HOV has a Return On Assets of 6.40%. This is comparable to the rest of the industry: HOV outperforms 60.00% of its industry peers.
HOV has a Return On Equity of 20.15%. This is amongst the best in the industry. HOV outperforms 86.67% of its industry peers.
HOV has a Return On Invested Capital of 11.98%. This is in the better half of the industry: HOV outperforms 78.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HOV is above the industry average of 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 20.15% | ||
| ROIC | 11.98% |
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's Profit Margin of 4.41% is in line compared to the rest of the industry. HOV outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of HOV has declined.
HOV has a Operating Margin (8.58%) which is comparable to the rest of the industry.
HOV's Operating Margin has improved in the last couple of years.
HOV has a Gross Margin of 18.90%. This is in the lower half of the industry: HOV underperforms 78.33% of its industry peers.
In the last couple of years the Gross Margin of HOV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.58% | ||
| PM (TTM) | 4.41% | ||
| GM | 18.9% |
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) just above the Cost of Capital (WACC), HOV is creating some value.
HOV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HOV has an Altman-Z score of 2.76. 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's Altman-Z score of 2.76 is in line compared to the rest of the industry. HOV outperforms 43.33% of its industry peers.
The Debt to FCF ratio of HOV is 8.06, which is on the high side as it means it would take HOV, 8.06 years of fcf income to pay off all of its debts.
HOV has a Debt to FCF ratio (8.06) which is in line with its industry peers.
HOV has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
HOV has a Debt to Equity ratio of 1.10. This is in the lower half of the industry: HOV underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.52
WACC7.86%
2.3 Liquidity
A Current Ratio of 3.82 indicates that HOV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.82, HOV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
HOV has a Quick Ratio of 3.82. 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 worse Quick ratio (0.36) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
HOV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -76.56%.
Measured over the past 5 years, HOV shows a small growth in Earnings Per Share. The EPS has been growing by 1.92% on average per year.
EPS 1Y (TTM)-76.56%
EPS 3Y-37.61%
EPS 5Y1.92%
EPS Q2Q%-103.99%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-16.51%
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 -24.65% on average per year.
Based on estimates for the next years, HOV will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y-97.71%
EPS Next 2Y-24.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.78%
Revenue Next 2Y5.83%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HOV is valuated correctly with a Price/Earnings ratio of 13.33.
Compared to the rest of the industry, the Price/Earnings ratio of HOV is on the same level as its industry peers.
HOV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.77.
The Price/Forward Earnings ratio is 581.65, which means the current valuation is very expensive for HOV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOV indicates a slightly more expensive valuation: HOV is more expensive than 73.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. HOV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 581.65 |
4.2 Price Multiples
HOV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HOV is cheaper than 96.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HOV is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.18 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
HOV's earnings are expected to decrease with -24.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.94
EPS Next 2Y-24.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HOV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
99.87
+0.51 (+0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners65.9%
Inst Owner Change4.28%
Ins Owners2.34%
Ins Owner Change-0.98%
Market Cap588.23M
Revenue(TTM)N/A
Net Income(TTM)168.30M
Analysts45
Price Target122.4 (22.56%)
Short Float %6.65%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend1.76
Dividend Growth(5Y)8.98%
DP6.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.83%
Min EPS beat(2)-43.87%
Max EPS beat(2)-1.8%
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)-4.18%
Min Revenue beat(2)-7.3%
Max Revenue beat(2)-1.07%
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)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 581.65 | ||
| P/S | 0.15 | ||
| P/FCF | 5.18 | ||
| P/OCF | 4.36 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 4.01 |
EPS(TTM)7.49
EY7.5%
EPS(NY)0.17
Fwd EY0.17%
FCF(TTM)19.29
FCFY19.31%
OCF(TTM)22.93
OCFY22.95%
SpS647.53
BVpS141.83
TBVpS141.83
PEG (NY)N/A
PEG (5Y)6.94
Graham Number154.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 20.15% | ||
| ROCE | 15.29% | ||
| ROIC | 11.98% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 14.09% | ||
| OM | 8.58% | ||
| PM (TTM) | 4.41% | ||
| GM | 18.9% | ||
| FCFM | 2.98% |
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%
ROICexgc growth 3Y-0.28%
ROICexgc 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 | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 202.89% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.98% | ||
| Profit Quality | 67.5% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 2.76 |
F-Score6
WACC7.86%
ROIC/WACC1.52
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)-76.56%
EPS 3Y-37.61%
EPS 5Y1.92%
EPS Q2Q%-103.99%
EPS Next Y-97.71%
EPS Next 2Y-24.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-16.51%
Revenue Next Year6.78%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.85%
EBIT growth 3Y4.66%
EBIT growth 5Y27.23%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.06%
FCF growth 3Y-69.53%
FCF growth 5YN/A
OCF growth 1Y-67.04%
OCF growth 3Y-51.73%
OCF growth 5YN/A
HOVNANIAN ENTERPRISES-A / HOV FAQ
What is the fundamental rating for HOV stock?
ChartMill assigns a fundamental rating of 3 / 10 to HOV.
What is the valuation status for HOV stock?
ChartMill assigns a valuation rating of 4 / 10 to HOVNANIAN ENTERPRISES-A (HOV). This can be considered as Fairly Valued.
Can you provide the profitability details for HOVNANIAN ENTERPRISES-A?
HOVNANIAN ENTERPRISES-A (HOV) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for HOV stock?
The Price/Earnings (PE) ratio for HOVNANIAN ENTERPRISES-A (HOV) is 13.33 and the Price/Book (PB) ratio is 0.7.
Is the dividend of HOVNANIAN ENTERPRISES-A sustainable?
The dividend rating of HOVNANIAN ENTERPRISES-A (HOV) is 0 / 10 and the dividend payout ratio is 6.34%.