HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis
NYSE:HOV - New York Stock Exchange, Inc. - US4424874018 - Common Stock - Currency: USD
Taking everything into account, HOV scores 4 out of 10 in our fundamental rating. HOV was compared to 63 industry peers in the Household Durables industry. HOV has an excellent profitability rating, but there are some minor concerns on its financial health. HOV is valued correctly, 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.
Each year in the past 5 years HOV has been profitable.
In the past 5 years HOV always reported a positive cash flow from operatings.
1.2 Ratios
HOV has a better Return On Assets (7.79%) than 60.32% of its industry peers.
With an excellent Return On Equity value of 24.23%, HOV belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
HOV's Return On Invested Capital of 15.82% is amongst the best of the industry. HOV outperforms 85.71% of its industry peers.
HOV had an Average Return On Invested Capital over the past 3 years of 13.99%. This is above the industry average of 10.29%.
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 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
The Profit Margin of HOV (6.49%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HOV has declined.
With a decent Operating Margin value of 10.93%, HOV is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Operating Margin of HOV has grown nicely.
The Gross Margin of HOV (20.10%) is worse than 79.37% of its industry peers.
HOV's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for HOV has been reduced compared to a year ago.
2.2 Solvency
HOV has an Altman-Z score of 2.36. 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.
The Altman-Z score of HOV (2.36) is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.36 |
ROIC/WACC2.01
WACC7.87%
2.3 Liquidity
A Current Ratio of 2.06 indicates that HOV has no problem at all paying its short term obligations.
HOV has a Current ratio of 2.06. This is comparable to the rest of the industry: HOV outperforms 42.86% of its industry peers.
A Quick Ratio of 0.11 indicates that HOV may have some problems paying its short term obligations.
HOV has a worse Quick ratio (0.11) than 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 -11.77% 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.
Looking at the last year, HOV shows a very negative growth in Revenue. The Revenue has decreased by -10.82% in the last year.
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
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.
HOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.24% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 3.77 indicates a rather cheap valuation of HOV.
96.83% of the companies in the same industry are more expensive than HOV, based on the Price/Earnings ratio.
HOV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.46.
With a Price/Forward Earnings ratio of 13.17, HOV is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as HOV.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, HOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
HOV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HOV is cheaper than 98.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
HOV has a very decent profitability rating, which 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
5. Dividend
5.1 Amount
No dividends for HOV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
107.61
+0.47 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners64.65%
Inst Owner Change-1.12%
Ins Owners3.54%
Ins Owner Change-0.63%
Market Cap624.14M
Analysts45
Price Target122.4 (13.74%)
Short Float %5.52%
Short Ratio1.62
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)15.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)9.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 13.17 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 4.33 |
EPS(TTM)28.55
EY26.53%
EPS(NY)8.17
Fwd EY7.59%
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 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 | 2.36 |
F-Score3
WACC7.87%
ROIC/WACC2.01
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