20.8 USD
+0.05 (+0.24%)
Overall HOVNP gets a fundamental rating of 4 out of 10. We evaluated HOVNP against 60 industry peers in the Household Durables industry. While HOVNP is still in line with the averages on profitability rating, there are concerns on its financial health. HOVNP has a valuation in line with the averages, but it does not seem to be growing. Finally HOVNP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year HOVNP was profitable.
- In the past year HOVNP had a positive cash flow from operations.
- Of the past 5 years HOVNP 4 years were profitable.
- Of the past 5 years HOVNP 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.40%, HOVNP is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
- With an excellent Return On Equity value of 20.15%, HOVNP belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- The Return On Invested Capital of HOVNP (11.98%) is better than 83.33% of its industry peers.
- HOVNP had an Average Return On Invested Capital over the past 3 years of 13.99%. This 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
- HOVNP's Profit Margin of 4.41% is in line compared to the rest of the industry. HOVNP outperforms 50.00% of its industry peers.
- HOVNP's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 8.58%, HOVNP is in line with its industry, outperforming 56.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of HOVNP has grown nicely.
- Looking at the Gross Margin, with a value of 18.90%, HOVNP is doing worse than 76.67% of the companies in the same industry.
- HOVNP's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HOVNP is creating value.
- There is no outstanding debt for HOVNP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- HOVNP has an Altman-Z score of 2.60. 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's Altman-Z score of 2.60 is on the low side compared to the rest of the industry. HOVNP is outperformed by 63.33% of its industry peers.
- HOVNP has a debt to FCF ratio of 8.06. This is a slightly negative value and a sign of low solvency as HOVNP would need 8.06 years to pay back of all of its debts.
- HOVNP has a Debt to FCF ratio (8.06) which is in line with its industry peers.
- A Debt/Equity ratio of 1.10 is on the high side and indicates that HOVNP has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.10, HOVNP is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Altman-Z | 2.6 |
ROIC/WACC2.5
WACC4.79%
2.3 Liquidity
- A Current Ratio of 3.82 indicates that HOVNP has no problem at all paying its short term obligations.
- The Current ratio of HOVNP (3.82) is better than 66.67% of its industry peers.
- HOVNP has a Quick Ratio of 3.82. This is a bad value and indicates that HOVNP is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.36, HOVNP is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- The earnings per share for HOVNP have decreased strongly by -76.56% in the last year.
- HOVNP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.92% yearly.
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, HOVNP will show a very negative growth in Earnings Per Share. The EPS will decrease by -24.65% on average per year.
- HOVNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.83% yearly.
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
- A Price/Earnings ratio of 2.78 indicates a rather cheap valuation of HOVNP.
- Based on the Price/Earnings ratio, HOVNP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. HOVNP is valued rather cheaply when compared to this.
- HOVNP is valuated quite expensively with a Price/Forward Earnings ratio of 121.14.
- Based on the Price/Forward Earnings ratio, HOVNP is valued a bit more expensive than 70.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. HOVNP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.78 | ||
| Fwd PE | 121.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HOVNP is valued cheaper than 98.33% of the companies in the same industry.
- HOVNP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HOVNP is cheaper than 98.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.08 | ||
| EV/EBITDA | 2.64 |
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 -24.65% in the coming years.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y-24.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.25%, HOVNP is a good candidate for dividend investing.
- HOVNP's Dividend Yield is rather good when compared to the industry average which is at 1.17. HOVNP pays more dividend than 100.00% of the companies in the same industry.
- HOVNP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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 6.34% of its income as dividend. This is a sustainable payout ratio.
DP6.34%
EPS Next 2Y-24.65%
EPS Next 3YN/A
HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP / HOVNP FAQ
Can you provide the ChartMill fundamental rating for HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to HOVNP.
What is the valuation status of HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP (HOVNP) stock?
ChartMill assigns a valuation rating of 5 / 10 to HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP (HOVNP). This can be considered as Fairly Valued.
Can you provide the profitability details for HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP?
HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP (HOVNP) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for HOVNP stock?
The Price/Earnings (PE) ratio for HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP (HOVNP) is 2.78 and the Price/Book (PB) ratio is 0.15.
How financially healthy is HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP?
The financial health rating of HOVNANIAN ENTERPRISES - HOV 7 5/8 PERP (HOVNP) is 3 / 10.