A Business at a Glance
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HOVNANIAN ENTERPRISES INC
HOV
$923M
Mkt Cap
$133.89
+2.30%
HOVNANIAN ENTERPRISES INC (HOV) has a current P/E ratio of 20.7, compared to its historical median P/E of 4.6. The stock is currently considered Fair based on its historical valuation range.
HOVNANIAN ENTERPRISES INC (HOV) has a 5-year average return on invested capital (ROIC) of 18.4%. This indicates strong capital allocation and a potential competitive advantage.
HOVNANIAN ENTERPRISES INC (HOV) has a market capitalization of $931M. It is classified as a small-cap stock.
Yes, HOVNANIAN ENTERPRISES INC (HOV) pays a dividend with a trailing twelve-month yield of 1.15%. The company also returns capital through share buybacks, with a buyback yield of 2.28%.
Based on historical P/E analysis, HOVNANIAN ENTERPRISES INC (HOV) appears fair. The current P/E of 20.7 is 346% above its historical median of 4.6. The estimated fair value CAGR (P/E method) is 19.2%.
HOVNANIAN ENTERPRISES INC (HOV) operates in the Operative Builders industry, within the Industrials sector.
Business Overview Hovnanian Enterprises, Inc. (“HEI”) conducts all of its homebuilding and financial services operations through its subsidiaries (references herein to the “Company,” “we,” “us” or “our” refer to HEI and its consolidated subsidiaries and should be understood to reflect the consolidated business of HEI’s subsidiaries). Through its subsidiaries, HEI designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments and is one of the nation’s largest builders of residential homes. Founded in 1959 by Kevork Hovnanian, HEI was incorporated in New Jersey in 1967 and reincorporated in Delaware in 1983. Since the incorporation of HEI’s predecessor company, the Company combined with its unconsolidated joint ventures have delivered in excess of 382,000 homes, including 6,431 homes in fiscal 2025.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.9B | 3.0B | 3.0B | 2.8B | 2.9B | 2.8B |
| Net Income | 44M | 51M | 223M | 179M | 195M | 550M |
| EPS | $6.33 | $7.43 | $31.79 | $26.88 | $29.00 | $85.86 |
| Free Cash Flow | 358M | 166M | 5.8M | 416M | 77M | 204M |
| ROIC | 2.5% | 2.0% | 13.4% | 25.4% | 23.3% | 28.1% |
| Gross Margin | - | 3.4% | 13.0% | 13.9% | 14.9% | 12.6% |
| Debt/Equity | 1.08 | 1.08 | 1.12 | 1.81 | 2.99 | 7.14 |
| Dividends/Share | $1.54 | $1.55 | $1.53 | $1.61 | $1.59 | $0.00 |
| Operating Income | 48M | 37M | 46M | 364M | 422M | 294M |
| Operating Margin | 1.6% | 1.3% | 1.5% | 13.2% | 14.4% | 10.6% |
| ROE | 5.3% | 6.3% | 32.3% | 37.1% | 69.9% | -419.9% |
| Shares Outstanding | 7M | 7M | 7M | 7M | 7M | 6M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.1B | 2.1B | 2.8B | 2.5B | 2.0B | 2.0B | 2.3B | 2.8B | 2.9B | 2.8B | 3.0B | 3.0B | 2.9B |
| Gross Margin | 7.7% | 6.0% | 7.1% | 7.6% | 8.0% | 6.9% | 8.9% | 12.6% | 14.9% | 13.9% | 13.0% | 3.4% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 170M | 194M | 202M | 202M | 212M | 212M |
| EBIT | 154M | 129M | -4.9M | 140M | N/A | 121M | N/A | 294M | 422M | 364M | 46M | 37M | 48M |
| Op. Margin | 7.5% | 6.0% | -0.2% | 5.7% | N/A | 6.0% | N/A | 10.6% | 14.4% | 13.2% | 1.5% | 1.3% | 1.6% |
| Net Income | 300M | -16M | -2.8M | -332M | 4.4M | -42M | 46M | 550M | 195M | 179M | 223M | 51M | 44M |
| Net Margin | 14.5% | -0.7% | -0.1% | -13.5% | 0.2% | -2.1% | 2.0% | 19.8% | 6.7% | 6.5% | 7.4% | 1.7% | 1.5% |
| Non-Recurring | 483K | 1.1M | 25M | 15M | 5.7M | 2.7M | 2.1M | 1.9M | 8.4M | 1.1M | 11M | 22M | 22M |
| Returns on Capital | |||||||||||||
| ROIC | 14.9% | 9.1% | -0.2% | 15.0% | N/A | 15.6% | N/A | 28.1% | 23.3% | 25.4% | 13.4% | 2.0% | 2.5% |
| ROE | -109.0% | 13.1% | 2.2% | 112.8% | -1.0% | 8.9% | -10.0% | -419.9% | 69.9% | 37.1% | 32.3% | 6.3% | 5.3% |
| ROA | 14.8% | -0.7% | -0.1% | -15.6% | 0.2% | -2.4% | 2.5% | 26.5% | 8.0% | 7.1% | 8.7% | 2.0% | 1.6% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -191M | -321M | 387M | 302M | -67M | -249M | 293M | 210M | 89M | 435M | 24M | 188M | 385M |
| Free Cash Flow | -194M | -323M | 379M | 295M | -72M | -253M | 289M | 204M | 77M | 416M | 5.8M | 166M | 358M |
| Owner Earnings | -204M | -333M | 381M | 297M | -74M | -254M | 285M | 197M | 74M | 412M | -9.4M | 158M | 356M |
| CapEx | 3.4M | 2.1M | 8.0M | 6.5M | 5.2M | 4.0M | 3.4M | 5.9M | 13M | 19M | 18M | 22M | 27M |
| Maint. CapEx | 3.4M | 3.4M | 3.6M | 4.2M | 3.2M | 4.2M | 5.3M | 5.3M | 5.5M | 8.8M | 7.7M | 14M | 15M |
| Growth CapEx | 6K | 0 | 4.4M | 2.2M | 2.0M | 0 | 0 | 662K | 7.1M | 10M | 10M | 8.2M | 12M |
| D&A | 3.4M | 3.4M | 3.6M | 4.2M | 3.2M | 4.2M | 5.3M | 5.3M | 5.5M | 8.8M | 7.7M | 14M | 15M |
| CapEx/OCF | N/A | N/A | 2.1% | 2.1% | N/A | N/A | 1.2% | 2.8% | 14.1% | 4.3% | 75.5% | 11.7% | 7.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 11M | 11M | 11M | 11M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.4% | 2.1% | 1.0% | 1.2% | 1.1% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12M | 4.8M | 27M | 30M | 21M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 4.1% | 1.0% | 2.1% | 3.2% | 2.3% |
| Stock-Based Comp | 10M | 8.8M | 2.9M | 557K | 3.7M | 721K | 2.8M | 7.7M | 10M | 14M | 25M | 17M | 15M |
| Debt Repayment | 6.0M | 4.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 1.4B | 1.7B | 1.3B | 1.1B | 1.2B | 1.3B | 1.1B | 1.2B | 764M | 574M | 629M | 582M | 524M |
| Cash & Equiv. | 262M | 254M | 347M | 469M | 233M | 182M | 309M | 16M | 382M | 478M | 267M | 319M | 378M |
| Long-Term Debt | 1.7B | 1.9B | 1.6B | 1.6B | 1.4B | 1.5B | 1.4B | 1.2B | 1.1B | 1.1B | 896M | 901M | 901M |
| Debt/Equity | -14.18 | -14.88 | -12.90 | -3.50 | -3.17 | -3.02 | -3.28 | 7.14 | 2.99 | 1.81 | 1.12 | 1.08 | 1.08 |
| Interest Coverage | 1.1 | 0.9 | -0.0 | 0.8 | N/A | 0.8 | N/A | 1.8 | 3.2 | 2.7 | 0.4 | 2.8 | 2.1 |
| Equity | -118M | -128M | -129M | -460M | -454M | -490M | -437M | 175M | 383M | 582M | 800M | 831M | 836M |
| Total Assets | 2.3B | 2.6B | 2.4B | 1.9B | 1.7B | 1.9B | 1.8B | 2.3B | 2.6B | 2.5B | 2.6B | 2.6B | 2.7B |
| Total Liabilities | 2.4B | 2.7B | 2.5B | 2.4B | 2.1B | 2.4B | 2.3B | 2.1B | 2.2B | 1.9B | 1.8B | 1.8B | 1.9B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -837M | -853M | -856M | -1.2B | -1.2B | -1.2B | -1.2B | -567M | -352M | -157M | 74M | 127M | 146M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.87 | -0.11 | -0.02 | -56.23 | 0.72 | -7.06 | 7.03 | 85.86 | 29.00 | 26.88 | 31.79 | 7.43 | 6.33 |
| Owner EPS | -1.27 | -2.27 | 2.70 | 50.23 | -12.16 | -42.58 | 43.26 | 30.79 | 10.96 | 61.84 | -1.33 | 22.87 | 51.17 |
| Book Value | -0.73 | -0.88 | -0.91 | -77.93 | -74.87 | -82.22 | -66.38 | 27.30 | 56.93 | 87.27 | 114.16 | 120.47 | 120.25 |
| Cash Flow/Share | -1.19 | -2.19 | 2.75 | 51.05 | -11.03 | -41.76 | 44.48 | 32.81 | 13.30 | 65.30 | 3.37 | 27.30 | 8.48 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.00 | 0.00 | 1.59 | 1.61 | 1.53 | 1.55 | 1.54 |
| Shares Out. | 160.4M | 146.4M | 140.9M | 5.9M | 6.1M | 6.0M | 6.6M | 6.4M | 6.7M | 6.7M | 7.0M | 6.9M | 7.0M |
| Valuation | |||||||||||||
| P/E Ratio | 51.7 | N/A | N/A | N/A | 52.8 | N/A | 4.6 | 1.0 | 1.4 | 2.5 | 5.5 | 17.8 | 21.2 |
| P/FCF | N/A | N/A | 14.5 | 1.1 | N/A | N/A | 0.7 | 2.7 | 3.5 | 1.1 | 213.7 | 5.5 | 2.6 |
| EV/EBIT | 109.7 | N/A | N/A | 10.6 | 8.3 | 12.0 | 20.4 | 8.3 | 3.5 | 64.1 | 42.6 | 42.1 | 30.3 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.4 | 0.8 | 0.8 | 1.6 | 1.1 | 1.1 |
| Price/Sales | 9.3 | 5.2 | 2.1 | 0.1 | 0.2 | 0.0 | 0.1 | 0.2 | 0.2 | 0.2 | 0.4 | 0.3 | 0.3 |
| FCF Yield | -1.2% | -3.9% | 6.9% | 87.3% | -31.3% | -160.0% | 122.4% | 34.0% | 25.7% | 86.4% | 0.5% | 17.6% | 38.5% |
| Market Cap | 15.5B | 8.2B | 5.5B | 338M | 230M | 158M | 237M | 602M | 299M | 482M | 1.3B | 947M | 931M |
| Avg. Price | 119.91 | 76.02 | 41.86 | 56.50 | 50.32 | 16.28 | 22.87 | 83.38 | 66.68 | 75.83 | 158.47 | 127.24 | 133.89 |
| Year-End Price | 96.75 | 56.25 | 39.00 | 57.25 | 38.00 | 26.52 | 32.65 | 84.97 | 40.40 | 66.36 | 176.18 | 132.24 | 133.89 |
HOVNANIAN ENTERPRISES INC passes 2 of 9 quality checks, indicating weak fundamentals.
HOVNANIAN ENTERPRISES INC trades at 20.7x trailing earnings, compared to its 15-year median P/E of 4.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 1.9x vs a median of 2.7x. The company's 5-year average ROIC is 18.4% with a gross margin of 11.6%. Total shareholder yield (dividends + buybacks) is 3.4%. At current prices, the estimated annualized return to fair value is +0.6%.
HOVNANIAN ENTERPRISES INC (HOV) reported annual revenue of $3.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
HOVNANIAN ENTERPRISES INC (HOV) has a net profit margin of 1.7%. This is a modest margin.
HOVNANIAN ENTERPRISES INC (HOV) generated $166 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HOVNANIAN ENTERPRISES INC (HOV) has a debt-to-equity ratio of 1.08. This indicates moderate leverage.
HOVNANIAN ENTERPRISES INC (HOV) reported earnings per share (EPS) of $7.43 in its most recent fiscal year.
HOVNANIAN ENTERPRISES INC (HOV) has a return on equity (ROE) of 6.3%. This indicates moderate shareholder returns.
HOVNANIAN ENTERPRISES INC (HOV) has a 5-year average gross margin of 11.6%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for HOVNANIAN ENTERPRISES INC (HOV), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HOVNANIAN ENTERPRISES INC (HOV) has a book value per share of $120.47, based on its most recent annual SEC filing.