HOVNANIAN ENTERPRISES-A (HOV)
US4424874018 - Common Stock
Overall HOV gets a fundamental rating of 4 out of 10. We evaluated HOV against 67 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
HOV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HOV's Return On Assets of 7.89% is fine compared to the rest of the industry. HOV outperforms 65.15% of its industry peers.
With an excellent Return On Equity value of 30.43%, HOV belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
HOV has a better Return On Invested Capital (13.53%) than 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HOV is above the industry average of 10.00%.
The last Return On Invested Capital (13.53%) for HOV is above the 3 year average (13.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 30.43% | ||
| ROIC | 13.53% |
ROA(3y)12.84%
ROA(5y)7.76%
ROE(3y)132.09%
ROE(5y)N/A
ROIC(3y)13.31%
ROIC(5y)10.78%
1.3 Margins
The Profit Margin of HOV (6.52%) is comparable to the rest of the industry.
HOV's Profit Margin has improved in the last couple of years.
HOV's Operating Margin of 11.91% is fine compared to the rest of the industry. HOV outperforms 69.70% of its industry peers.
HOV's Operating Margin has improved in the last couple of years.
HOV has a worse Gross Margin (22.51%) than 74.24% of its industry peers.
In the last couple of years the Gross Margin of HOV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 6.52% | ||
| GM | 22.51% |
OM growth 3Y16.9%
OM growth 5Y12.62%
PM growth 3Y48.75%
PM growth 5Y95.79%
GM growth 3Y7.92%
GM growth 5Y4.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HOV is still creating some value.
The number of shares outstanding for HOV remains at a similar level compared to 1 year ago.
HOV has more 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
An Altman-Z score of 2.58 indicates that HOV is not a great score, but indicates only limited risk for bankruptcy at the moment.
HOV has a Altman-Z score (2.58) which is comparable to the rest of the industry.
The Debt to FCF ratio of HOV is 2.90, which is a good value as it means it would take HOV, 2.90 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.90, HOV perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
A Debt/Equity ratio of 1.70 is on the high side and indicates that HOV has dependencies on debt financing.
With a Debt to Equity ratio value of 1.70, HOV is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.45
WACC9.31%
2.3 Liquidity
A Current Ratio of 3.76 indicates that HOV has no problem at all paying its short term obligations.
HOV has a better Current ratio (3.76) than 66.67% of its industry peers.
A Quick Ratio of 0.55 indicates that HOV may have some problems paying its short term obligations.
The Quick ratio of HOV (0.55) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
HOV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.47%.
The Earnings Per Share has been growing by 93.29% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.30% in the past year.
Measured over the past years, HOV shows a small growth in Revenue. The Revenue has been growing by 6.72% on average per year.
EPS 1Y (TTM)0.47%
EPS 3Y63.34%
EPS 5Y93.29%
EPS growth Q2Q21.68%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y5.55%
Revenue growth 5Y6.72%
Revenue growth Q2Q15.29%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
HOV is valuated cheaply with a Price/Earnings ratio of 5.23.
96.97% 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 28.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | N/A |
4.2 Price Multiples
96.97% 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 cheaply inside the industry as 98.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.7 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
The decent profitability rating of HOV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for HOV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HOVNANIAN ENTERPRISES-A
NYSE:HOV (5/3/2024, 7:04:00 PM)
After market: 157.82 0 (0%)157.82
+4.65 (+3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap962.70M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 30.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.91% | ||
| PM (TTM) | 6.52% | ||
| GM | 22.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.76 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.47%
EPS 3Y63.34%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y5.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y