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HOV

Hovnanian EnterprisesNYSE:HOV Stock Report

Market Cap

US$542.7m

7D

6.9%

1Y

163.3%

Updated

01 Dec, 2021

Data

Company Financials
HOV fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends0/6

HOV Stock Overview

Hovnanian Enterprises, Inc. engages in the design, construction, marketing, and sale of residential homes in the United States.

Hovnanian Enterprises Competitors

D.R. Horton

NYSE:DHI

US$34.8b

Lennar

NYSE:LEN

US$31.8b

NVR

NYSE:NVR

US$18.2b

PulteGroup

NYSE:PHM

US$12.7b

Price History & Performance

Summary of all time highs, changes and price drops for Hovnanian Enterprises
Historical stock prices
Current Share PriceUS$99.38
52 Week HighUS$146.34
52 Week LowUS$30.17
Beta2.52
1 Month Change13.81%
3 Month Change-4.62%
1 Year Change163.26%
3 Year Change261.38%
5 Year Change62.92%
Change since IPO-18.46%

Recent News & Updates

Oct 18

Homebuilder Hovnanian: The Lowest P/E On The NYSE

I am bullish of the homebuilding industry demand and supply stories. Hovnanian remains a turnaround story from the '08-'11 housing crisis, but that turnaround now seems sustainable. I estimate EPS of $24 a share next year. That puts Hovnanian's P/E at less than 4. Hovnanian has no Wall Street or Seeking Alpha coverage. A truly under-the-radar opportunity.

Shareholder Returns

HOVUS Consumer DurablesUS Market
7D6.9%-4.4%-4.9%
1Y163.3%29.8%17.8%

Return vs Industry: HOV exceeded the US Consumer Durables industry which returned 29.8% over the past year.

Return vs Market: HOV exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is HOV's price volatile compared to industry and market?
HOV volatility
HOV Average Weekly Movement7.4%
Consumer Durables Industry Average Movement5.7%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: HOV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HOV's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19591,697Ara Hovnanianhttps://www.khov.com

Hovnanian Enterprises, Inc. engages in the design, construction, marketing, and sale of residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as club houses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters.

Hovnanian Enterprises Fundamentals Summary

How do Hovnanian Enterprises's earnings and revenue compare to its market cap?
HOV fundamental statistics
Market CapUS$542.68m
Earnings (TTM)US$538.06m
Revenue (TTM)US$2.65b

1.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOV income statement (TTM)
RevenueUS$2.65b
Cost of RevenueUS$2.10b
Gross ProfitUS$512.16m
Expenses-US$25.89m
EarningsUS$538.06m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 09, 2021

Earnings per share (EPS)86.02
Gross Margin19.31%
Net Profit Margin20.29%
Debt/Equity Ratio1,285.9%

How did HOV perform over the long term?

See historical performance and comparison

Valuation

Is Hovnanian Enterprises undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOV ($99.38) is trading below our estimate of fair value ($262.71)

Significantly Below Fair Value: HOV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HOV is good value based on its PE Ratio (1.2x) compared to the US Consumer Durables industry average (9.8x).

PE vs Market: HOV is good value based on its PE Ratio (1.2x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HOV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HOV has negative assets, so we can't compare its PB Ratio to the US Consumer Durables industry average.


Future Growth

How is Hovnanian Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hovnanian Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Hovnanian Enterprises performed over the past 5 years?

65.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOV has a high level of non-cash earnings.

Growing Profit Margin: HOV's current net profit margins (20.3%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: HOV's earnings have grown significantly by 65.9% per year over the past 5 years.

Accelerating Growth: HOV's earnings growth over the past year (6993.7%) exceeds its 5-year average (65.9% per year).

Earnings vs Industry: HOV earnings growth over the past year (6993.7%) exceeded the Consumer Durables industry 69.8%.


Return on Equity

High ROE: Whilst HOV's Return on Equity (493.8%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Hovnanian Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: HOV's short term assets ($1.7B) exceed its short term liabilities ($430.5M).

Long Term Liabilities: HOV's short term assets ($1.7B) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: HOV's net debt to equity ratio (1142.7%) is considered high.

Reducing Debt: HOV had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HOV's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: HOV's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

What is Hovnanian Enterprises's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HOV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HOV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HOV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.9yrs

Average management tenure


CEO

Ara Hovnanian (64 yo)

24.33yrs

Tenure

US$9,002,942

Compensation

Mr. Ara K. Hovnanian has been the Chief Executive Officer of Hovnanian Enterprises, Inc. since July 1997 and has been its President since April 1988. Mr. Hovnanian has been Chairman of Hovnanian Enterprise...


CEO Compensation Analysis

Compensation vs Market: Ara's total compensation ($USD9.00M) is above average for companies of similar size in the US market ($USD1.75M).

Compensation vs Earnings: Ara's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HOV's management team is seasoned and experienced (16.9 years average tenure).


Board Members

Experienced Board: HOV's board of directors are seasoned and experienced ( 15.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hovnanian Enterprises, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hovnanian Enterprises, Inc.
  • Ticker: HOV
  • Exchange: NYSE
  • Founded: 1959
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$542.677m
  • Shares outstanding: 6.25m
  • Website: https://www.khov.com

Number of Employees


Location

  • Hovnanian Enterprises, Inc.
  • 90 Matawan Road
  • Fifth Floor
  • Matawan
  • New Jersey
  • 7747
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 23:54
End of Day Share Price2021/12/01 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.