| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
HOV Stock Overview
Hovnanian Enterprises, Inc. engages in the design, construction, marketing, and sale of residential homes in the United States.
Hovnanian Enterprises Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$99.38 |
| 52 Week High | US$146.34 |
| 52 Week Low | US$30.17 |
| Beta | 2.52 |
| 1 Month Change | 13.81% |
| 3 Month Change | -4.62% |
| 1 Year Change | 163.26% |
| 3 Year Change | 261.38% |
| 5 Year Change | 62.92% |
| Change since IPO | -18.46% |
Recent News & Updates
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
| HOV | US Consumer Durables | US Market | |
|---|---|---|---|
| 7D | 6.9% | -4.4% | -4.9% |
| 1Y | 163.3% | 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
| HOV volatility | |
|---|---|
| HOV Average Weekly Movement | 7.4% |
| Consumer Durables Industry Average Movement | 5.7% |
| Market Average Movement | 6.0% |
| 10% most volatile stocks in US Market | 15.1% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1959 | 1,697 | Ara Hovnanian | https://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
| HOV fundamental statistics | |
|---|---|
| Market Cap | US$542.68m |
| Earnings (TTM) | US$538.06m |
| Revenue (TTM) | US$2.65b |
1.2x
P/E Ratio0.2x
P/S RatioIs HOV overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HOV income statement (TTM) | |
|---|---|
| Revenue | US$2.65b |
| Cost of Revenue | US$2.10b |
| Gross Profit | US$512.16m |
| Expenses | -US$25.89m |
| Earnings | US$538.06m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
Dec 09, 2021
| Earnings per share (EPS) | 86.02 |
| Gross Margin | 19.31% |
| Net Profit Margin | 20.29% |
| Debt/Equity Ratio | 1,285.9% |
How did HOV perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/12/01 23:54 |
| End of Day Share Price | 2021/12/01 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2020/10/31 |
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.