HOVNANIAN ENTERPRISES-A (HOV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HOV - US4424874018 - Common Stock
98.4 USD
-4.64 (-4.5%)
98.4 USD
0 (0%)
Taking everything into account, HOV scores 3 out of 10 in our fundamental rating. HOV was compared to 61 industry peers in the Household Durables industry. HOV has a medium profitability rating, but doesn't score so well on its financial health evaluation. HOV is valued correctly, but it does not seem to be growing.
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 has a Return On Assets of 6.40%. This is in the better half of the industry: HOV outperforms 60.66% of its industry peers.
HOV has a better Return On Equity (20.15%) than 86.89% of its industry peers.
With a decent Return On Invested Capital value of 11.98%, HOV is doing good in the industry, outperforming 78.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HOV is above the industry average of 9.73%.
| 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
HOV's Profit Margin of 4.41% is in line compared to the rest of the industry. HOV outperforms 50.82% of its industry peers.
In the last couple of years the Profit Margin of HOV has declined.
The Operating Margin of HOV (8.58%) is comparable to the rest of the industry.
HOV's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 18.90%, HOV is not doing good in the industry: 78.69% of the companies in the same industry are doing better.
HOV'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 just above the Cost of Capital (WACC), so HOV is still creating some value.
HOV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HOV has an Altman-Z score of 2.76. This is not the best score and indicates that HOV is in the grey zone with still only limited risk for bankruptcy at the moment.
HOV has a Altman-Z score (2.76) which is in line with its industry peers.
HOV has a debt to FCF ratio of 8.06. This is a slightly negative value and a sign of low solvency as HOV would need 8.06 years to pay back of all of its debts.
HOV has a Debt to FCF ratio (8.06) which is in line with its industry peers.
HOV has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.10, HOV is not doing good in the industry: 73.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.51
WACC7.96%
2.3 Liquidity
A Current Ratio of 3.82 indicates that HOV has no problem at all paying its short term obligations.
HOV's Current ratio of 3.82 is fine compared to the rest of the industry. HOV outperforms 67.21% of its industry peers.
A Quick Ratio of 0.36 indicates that HOV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.36, HOV is doing worse than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for HOV have decreased strongly by -76.56% in the last year.
HOV 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
The Earnings Per Share is expected to decrease by -24.65% on average over the next years. This is quite bad
The Revenue is expected to grow by 5.83% on average over the next years.
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
The EPS 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
The Price/Earnings ratio is 13.14, which indicates a correct valuation of HOV.
The rest of the industry has a similar Price/Earnings ratio as HOV.
HOV is valuated cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 573.09, the valuation of HOV can be described as expensive.
Based on the Price/Forward Earnings ratio, HOV is valued a bit more expensive than the industry average as 70.49% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.84. HOV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 573.09 |
4.2 Price Multiples
96.72% 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 cheaper than 91.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.1 | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
The decent profitability rating of HOV may justify a higher PE ratio.
HOV's earnings are expected to decrease with -24.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.84
EPS Next 2Y-24.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for HOV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
98.4
-4.64 (-4.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners65.9%
Inst Owner Change4.28%
Ins Owners2.34%
Ins Owner Change-0.98%
Market Cap579.58M
Revenue(TTM)N/A
Net Income(TTM)168.30M
Analysts45
Price Target122.4 (24.39%)
Short Float %6.57%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend1.76
Dividend Growth(5Y)8.98%
DP6.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.83%
Min EPS beat(2)-43.87%
Max EPS beat(2)-1.8%
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)-4.18%
Min Revenue beat(2)-7.3%
Max Revenue beat(2)-1.07%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 573.09 | ||
| P/S | 0.15 | ||
| P/FCF | 5.1 | ||
| P/OCF | 4.29 | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 4.07 |
EPS(TTM)7.49
EY7.61%
EPS(NY)0.17
Fwd EY0.17%
FCF(TTM)19.29
FCFY19.6%
OCF(TTM)22.93
OCFY23.3%
SpS647.53
BVpS141.83
TBVpS141.83
PEG (NY)N/A
PEG (5Y)6.84
Graham Number154.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 20.15% | ||
| ROCE | 15.29% | ||
| ROIC | 11.98% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 14.09% | ||
| OM | 8.58% | ||
| PM (TTM) | 4.41% | ||
| GM | 18.9% | ||
| FCFM | 2.98% |
ROA(3y)7.79%
ROA(5y)9.92%
ROE(3y)36.53%
ROE(5y)N/A
ROIC(3y)13.99%
ROIC(5y)12.81%
ROICexc(3y)16.7%
ROICexc(5y)15.21%
ROICexgc(3y)18.6%
ROICexgc(5y)17.04%
ROCE(3y)17.85%
ROCE(5y)16.34%
ROICexgc growth 3Y-0.28%
ROICexgc 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-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 8.06 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 202.89% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.98% | ||
| Profit Quality | 67.5% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 2.76 |
F-Score6
WACC7.96%
ROIC/WACC1.51
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)-76.56%
EPS 3Y-37.61%
EPS 5Y1.92%
EPS Q2Q%-103.99%
EPS Next Y-97.71%
EPS Next 2Y-24.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-16.51%
Revenue Next Year6.78%
Revenue Next 2Y5.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.85%
EBIT growth 3Y4.66%
EBIT growth 5Y27.23%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-71.06%
FCF growth 3Y-69.53%
FCF growth 5YN/A
OCF growth 1Y-67.04%
OCF growth 3Y-51.73%
OCF growth 5YN/A
HOVNANIAN ENTERPRISES-A / HOV FAQ
What is the fundamental rating for HOV stock?
ChartMill assigns a fundamental rating of 3 / 10 to HOV.
What is the valuation status for HOV stock?
ChartMill assigns a valuation rating of 4 / 10 to HOVNANIAN ENTERPRISES-A (HOV). This can be considered as Fairly Valued.
Can you provide the profitability details for HOVNANIAN ENTERPRISES-A?
HOVNANIAN ENTERPRISES-A (HOV) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for HOV stock?
The Price/Earnings (PE) ratio for HOVNANIAN ENTERPRISES-A (HOV) is 13.14 and the Price/Book (PB) ratio is 0.69.
Is the dividend of HOVNANIAN ENTERPRISES-A sustainable?
The dividend rating of HOVNANIAN ENTERPRISES-A (HOV) is 0 / 10 and the dividend payout ratio is 6.34%.