HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP (HOVNP) Stock Fundamental Analysis
NASDAQ:HOVNP - US4424871121
19.775 USD
-0.12 (-0.59%)
We assign a fundamental rating of 5 out of 10 to HOVNP. HOVNP was compared to 61 industry peers in the Household Durables industry. HOVNP has an excellent profitability rating, but there are concerns on its financial health. HOVNP has a valuation in line with the averages, but on the other hand it scores bad on growth. HOVNP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HOVNP was profitable.
HOVNP had a negative operating cash flow in the past year.
In the past 5 years HOVNP has always been profitable.
Each year in the past 5 years HOVNP had a positive operating cash flow.
1.2 Ratios
HOVNP's Return On Assets of 7.79% is fine compared to the rest of the industry. HOVNP outperforms 63.93% of its industry peers.
The Return On Equity of HOVNP (24.23%) is better than 95.08% of its industry peers.
HOVNP has a Return On Invested Capital of 15.82%. This is amongst the best in the industry. HOVNP outperforms 86.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HOVNP is above the industry average of 10.51%.
The last Return On Invested Capital (15.82%) for HOVNP 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
Looking at the Profit Margin, with a value of 6.49%, HOVNP is in the better half of the industry, outperforming 62.30% of the companies in the same industry.
HOVNP's Profit Margin has declined in the last couple of years.
HOVNP has a Operating Margin of 10.93%. This is in the better half of the industry: HOVNP outperforms 67.21% of its industry peers.
In the last couple of years the Operating Margin of HOVNP has grown nicely.
HOVNP has a Gross Margin of 20.10%. This is in the lower half of the industry: HOVNP underperforms 78.69% of its industry peers.
In the last couple of years the Gross Margin of HOVNP 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), HOVNP is creating value.
HOVNP has less shares outstanding than it did 1 year ago.
HOVNP has less shares outstanding than it did 5 years ago.
HOVNP has a better debt/assets ratio than last year.
2.2 Solvency
HOVNP has an Altman-Z score of 2.18. This is not the best score and indicates that HOVNP is in the grey zone with still only limited risk for bankruptcy at the moment.
HOVNP has a Altman-Z score of 2.18. This is in the lower half of the industry: HOVNP underperforms 67.21% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that HOVNP has dependencies on debt financing.
HOVNP has a worse Debt to Equity ratio (1.15) than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.18 |
ROIC/WACC3.34
WACC4.74%
2.3 Liquidity
HOVNP has a Current Ratio of 2.06. This indicates that HOVNP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HOVNP (2.06) is worse than 60.66% of its industry peers.
HOVNP has a Quick Ratio of 2.06. This is a bad value and indicates that HOVNP is not financially healthy enough and could expect problems in meeting its short term obligations.
HOVNP has a worse Quick ratio (0.11) than 95.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
HOVNP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.14%.
Measured over the past years, HOVNP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.20% on average per year.
The Revenue has grown by 9.03% in the past year. This is quite good.
HOVNP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.30% yearly.
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
The Earnings Per Share is expected to decrease by -49.43% on average over the next years. This is quite bad
HOVNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.09% yearly.
EPS Next Y-61.94%
EPS Next 2Y-49.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y1.09%
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
HOVNP is valuated cheaply with a Price/Earnings ratio of 0.95.
100.00% of the companies in the same industry are more expensive than HOVNP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.90. HOVNP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 2.42, the valuation of HOVNP can be described as very cheap.
HOVNP's Price/Forward Earnings ratio is rather cheap when compared to the industry. HOVNP is cheaper than 98.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. HOVNP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.95 | ||
| Fwd PE | 2.42 |
4.2 Price Multiples
98.36% of the companies in the same industry are more expensive than HOVNP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.86 |
4.3 Compensation for Growth
The decent profitability rating of HOVNP may justify a higher PE ratio.
A cheap valuation may be justified as HOVNP'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
With a Yearly Dividend Yield of 9.58%, HOVNP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.97, HOVNP pays a better dividend. On top of this HOVNP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, HOVNP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.58% |
5.2 History
The dividend of HOVNP is nicely growing with an annual growth rate of 8.98%!
HOVNP has been paying a dividend for over 5 years, so it has already some track record.
HOVNP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.98%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
HOVNP pays out 5.37% of its income as dividend. This is a sustainable payout ratio.
DP5.37%
EPS Next 2Y-49.43%
EPS Next 3YN/A
HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP
NASDAQ:HOVNP (9/3/2025, 3:41:33 PM)
19.775
-0.12 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners64.34%
Inst Owner ChangeN/A
Ins Owners3.32%
Ins Owner ChangeN/A
Market Cap116.47M
Analysts45
Price Target16.27 (-17.72%)
Short Float %0.08%
Short Ratio0.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.58% |
Yearly Dividend1.76
Dividend Growth(5Y)8.98%
DP5.37%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)-15.44%
PT rev (3m)-17.88%
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)-0.53%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.95 | ||
| Fwd PE | 2.42 | ||
| P/S | 0.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.14 | ||
| P/tB | 0.14 | ||
| EV/EBITDA | 2.86 |
EPS(TTM)20.79
EY105.13%
EPS(NY)8.17
Fwd EY41.32%
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 | 2.18 |
F-Score3
WACC4.74%
ROIC/WACC3.34
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-0.53%
Revenue Next 2Y1.09%
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