Hovnanian Enterprises, Inc. (HOV) 10-Year Financial Performance & Capital Metrics

HOV • • Industrial / General

Consumer CyclicalHomebuildersTraditional Site-Built HomebuildersRegional & Market-Specific Builders

AboutHovnanian 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 clubhouses, 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. It also provides mortgage loans and title insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.Show more

Revenue $3B +9.0%
EBITDA $267M -6.4%
Net Income $242M +17.5%
EPS (Diluted) 31.79 +18.3%
Gross Margin 20.03% -4.9%
EBITDA Margin 8.9% -14.2%
Operating Margin 8.64% -14.0%
Net Margin 8.05% +7.8%
ROE 35.02% -17.9%
ROIC 13.43% -14.7%
Debt/Equity 1.27 -35.3%
Interest Coverage 8.44 +64.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 52.8%
✓Trading at only 1.1x book value
✓Efficient asset utilization: 1.2x turnover

✗Weaknesses

✗Low quality earnings: Net income not backed by cash flow

Price & Volume

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Growth Metrics

Revenue CAGR

10Y3.83%

5Y8.3%

3Y2.59%

TTM7.86%

Profit (Net Income) CAGR

10Y-2.36%

5Y-

3Y-26.43%

TTM-35.13%

EPS CAGR

10Y-3.78%

5Y-

3Y-28.2%

TTM-134.98%

ROCE

10Y Avg10.15%

5Y Avg14.67%

3Y Avg15.64%

Latest13.28%

Peer Comparison

Regional & Market-Specific Builders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
BZHBeazer Homes USA, Inc.	711.14M	24.10	15.86	1.77%	2.84%	5.56%	0.49%	0.85
TOLToll Brothers, Inc.	14.16B	149.04	9.93	8.52%	12.64%	16.95%	6.61%	0.39
GRBKGreen Brick Partners, Inc.	3.23B	74.19	8.78	18.07%	16.03%	18.02%	0.67%	0.20
TMHCTaylor Morrison Home Corporation	6.27B	64.15	7.76	10.11%	10.19%	13.77%	2.77%	0.37
TPHTri Pointe Homes, Inc.	3.05B	35.50	7.35	20.93%	9.05%	11.12%	22.05%	0.33
MHOM/I Homes, Inc.	3.63B	139.00	7.05	11.83%	10.56%	15%	4.71%	0.26
HOVHovnanian Enterprises, Inc.	648.42M	125.47	3.95	9.03%	5.06%	19.02%	0.89%	1.27
UHGUnited Homes Group, Inc.	34.51M	1.58	1.76	10.02%	-4.49%	-35.51%	44.66%	1.80

Profit & Loss

	Oct 2015	Oct 2016	Oct 2017	Oct 2018	Oct 2019	Oct 2020	Oct 2021	Oct 2022	Oct 2023	Oct 2024
Sales/Revenue+	2.15B	2.75B	2.45B	1.99B	2.02B	2.34B	2.78B	2.92B	2.76B	3B
Revenue Growth %	0.04%	0.28%	-0.11%	-0.19%	0.01%	0.16%	0.19%	0.05%	-0.06%	0.09%
Cost of Goods Sold+	1.83B	2.39B	2.1B	1.67B	1.72B	1.97B	2.24B	2.28B	2.18B	2.4B
COGS % of Revenue	0.85%	0.87%	0.86%	0.84%	0.85%	0.84%	0.81%	0.78%	0.79%	0.8%
Gross Profit+	322.81M	358.9M	351.17M	325.36M	298.6M	372.21M	540.8M	643.43M	580.14M	601.79M
Gross Margin %	0.15%	0.13%	0.14%	0.16%	0.15%	0.16%	0.19%	0.22%	0.21%	0.2%
Gross Profit Growth %	-0.1%	0.11%	-0.02%	-0.07%	-0.08%	0.25%	0.45%	0.19%	-0.1%	0.04%
Operating Expenses+	256.91M	257.95M	257.2M	230.42M	234.71M	242.91M	278.33M	298.57M	304.77M	342.23M
OpEx % of Revenue	0.12%	0.09%	0.1%	0.12%	0.12%	0.1%	0.1%	0.1%	0.11%	0.11%
Selling, General & Admin	250.91M	253.08M	255.69M	228.83M	233.15M	241.81M	276.59M	296.15M	304.77M	342.23M
SG&A % of Revenue	0.12%	0.09%	0.1%	0.11%	0.12%	0.1%	0.1%	0.1%	0.11%	0.11%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	6M	4.87M	1.52M	1.58M	1.56M	1.1M	1.74M	2.42M	0	0
Operating Income+	66.68M	93.04M	82.67M	115.82M	88.65M	140.56M	266.05M	368.43M	276.9M	259.56M
Operating Margin %	0.03%	0.03%	0.03%	0.06%	0.04%	0.06%	0.1%	0.13%	0.1%	0.09%
Operating Income Growth %	-0.37%	0.4%	-0.11%	0.4%	-0.23%	0.59%	0.89%	0.38%	-0.25%	-0.06%
EBITDA+	70.07M	96.6M	86.91M	118.98M	92.82M	145.87M	271.32M	373.89M	285.7M	267.29M
EBITDA Margin %	0.03%	0.04%	0.04%	0.06%	0.05%	0.06%	0.1%	0.13%	0.1%	0.09%
EBITDA Growth %	-0.36%	0.38%	-0.1%	0.37%	-0.22%	0.57%	0.86%	0.38%	-0.24%	-0.06%
D&A (Non-Cash Add-back)	3.39M	3.56M	4.25M	3.16M	4.17M	5.3M	5.28M	5.46M	8.8M	7.73M
EBIT	42.34M	76.4M	49.87M	98.45M	70.18M	138.12M	266.11M	358.93M	274.95M	347.84M
Net Interest Income+	-91.83M	-90.97M	-97.3M	-103.3M	-90.06M	-103.8M	-77.72M	-47.34M	-54.08M	-30.75M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	91.83M	90.97M	97.3M	103.3M	90.06M	103.8M	77.72M	47.34M	54.08M	30.75M
Other Income/Expense	-87.67M	-98.51M	-139.21M	-86.8M	-103.56M	-83.81M	-77.98M	-41.6M	-20.95M	57.53M
Pretax Income+	-21.77M	2.44M	-45.24M	8.15M	-39.67M	55.4M	189.86M	319.75M	255.95M	317.09M
Pretax Margin %	-0.01%	0%	-0.02%	0%	-0.02%	0.02%	0.07%	0.11%	0.09%	0.11%
Income Tax+	-5.67M	5.25M	286.95M	3.63M	2.45M	4.47M	-417.96M	94.26M	50.06M	75.08M
Effective Tax Rate %	0.74%	-1.16%	7.34%	0.55%	1.06%	0.92%	3.2%	0.71%	0.8%	0.76%
Net Income+	-16.1M	-2.82M	-332.19M	4.52M	-42.12M	50.93M	607.82M	225.49M	205.89M	242.01M
Net Margin %	-0.01%	-0%	-0.14%	0%	-0.02%	0.02%	0.22%	0.08%	0.07%	0.08%
Net Income Growth %	-1.05%	0.82%	-116.84%	1.01%	-10.32%	2.21%	10.93%	-0.63%	-0.09%	0.18%
Net Income (Continuing)	-16.1M	-2.82M	-332.19M	4.52M	-42.12M	50.93M	607.82M	225.49M	205.89M	242.01M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	687K	835K	487K	15K	53K	0
EPS (Diluted)+	-2.74	-0.48	-56.23	0.74	-7.06	7.03	85.87	29.00	26.88	31.79
EPS Growth %	-1.06%	0.82%	-116.15%	1.01%	-10.54%	2%	11.21%	-0.66%	-0.07%	0.18%
EPS (Basic)	-2.75	-0.50	-56.23	0.76	-7.06	7.48	87.50	30.31	28.76	34.40
Diluted Shares Outstanding	5.88M	5.9M	5.91M	6.1M	5.97M	6.58M	6.39M	6.73M	6.67M	7.01M
Basic Shares Outstanding	5.85M	5.64M	5.91M	5.94M	5.97M	6.19M	6.29M	6.44M	6.23M	6.48M
Dividend Payout Ratio	-	-	-	-	-	-	0%	0%	-	-

Balance Sheet

	Oct 2015	Oct 2016	Oct 2017	Oct 2018	Oct 2019	Oct 2020	Oct 2021	Oct 2022	Oct 2023	Oct 2024
Total Current Assets+	2.49B	2.22B	1.58B	1.35B	1.53B	1.57B	1.61B	1.96B	2.03B	458.24M
Cash & Short-Term Investments	253.75M	346.76M	469.32M	187.87M	130.98M	262.49M	245.97M	326.2M	434.12M	209.98M
Cash Only	253.75M	346.76M	469.32M	187.87M	130.98M	262.49M	245.97M	326.2M	434.12M	209.98M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	70.35M	49.73M	58.15M	35.19M	44.91M	33.69M	39.93M	37.84M	27.98M	29.4M
Days Sales Outstanding	11.95	6.59	8.66	6.45	8.13	5.25	5.24	4.73	3.71	3.57
Inventory	1.64B	1.28B	1.01B	1.08B	1.29B	1.2B	1.25B	1.52B	1.35B	1.64B
Days Inventory Outstanding	328.8	195.68	175.48	236.23	274.55	221.36	204.19	243.33	226.32	249.82
Other Current Assets	156.84M	3.91M	2.08M	12.81M	20.91M	105.49M	16.09M	164.59M	171M	-1.51B
Total Non-Current Assets+	108.83M	156.96M	324.5M	308.86M	346.44M	261.96M	708.07M	601.54M	466.51M	284.5M
Property, Plant & Equipment	45.53M	50.33M	52.92M	20.29M	20.13M	18.18M	18.74M	25.82M	59.69M	72.2M
Fixed Asset Turnover	47.18x	54.68x	46.33x	98.16x	100.21x	128.89x	148.53x	113.18x	46.17x	41.62x
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	61.21M	100.5M	115.09M	123.69M	127.04M	103.16M	60.9M	74.94M	97.89M	142.91M
Other Non-Current Assets	2.09M	6.12M	156.49M	164.88M	199.28M	140.61M	202.76M	155.99M	6.1M	-171.68M
Total Assets+	2.6B	2.38B	1.9B	1.66B	1.88B	1.83B	2.32B	2.56B	2.49B	2.61B
Asset Turnover	0.83x	1.16x	1.29x	1.20x	1.07x	1.28x	1.20x	1.14x	1.11x	1.15x
Asset Growth %	0.14%	-0.09%	-0.2%	-0.13%	0.13%	-0.03%	0.27%	0.1%	-0.03%	0.05%
Total Current Liabilities+	589M	636.67M	423.06M	338.32M	358.37M	446.95M	526.68M	549.55M	625.89M	564.92M
Accounts Payable	144.74M	160.92M	128.84M	127.8M	141.67M	148.54M	426.38M	439.95M	387.15M	433.27M
Days Payables Outstanding	28.94	24.54	22.39	28	30.09	27.5	69.41	70.47	64.94	65.81
Short-Term Debt	157.07M	52M	107.96M	0	0	0	0	0	0	11.13M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0	1000K
Other Current Liabilities	183.3M	368.4M	-177.65M	165.55M	-361.67M	200.05M	-522.83M	-546.39M	209.95M	58.89M
Current Ratio	4.23x	3.49x	3.73x	4.00x	4.28x	3.50x	3.06x	3.57x	3.24x	0.81x
Quick Ratio	1.44x	1.48x	1.34x	0.81x	0.68x	0.83x	0.68x	0.80x	1.08x	-2.10x
Cash Conversion Cycle	311.81	177.73	161.74	214.68	252.58	199.11	140.01	177.59	165.09	187.58
Total Non-Current Liabilities+	2.14B	1.87B	1.94B	1.78B	2.01B	1.82B	1.62B	1.63B	1.42B	1.15B
Long-Term Debt	2.01B	1.7B	1.65B	1.57B	1.7B	1.57B	1.37B	1.29B	1.14B	986.89M
Capital Lease Obligations	0	0	0	0	0	21.05M	18.95M	10.79M	17.98M	19.73M
Deferred Tax Liabilities	-16.31M	-10.57M	-33.77M	-30.09M	-35.87M	0	0	0	0	0
Other Non-Current Liabilities	36.32M	379.68M	288.98M	206.84M	310.18M	672.32M	178.38M	325.87M	254.46M	140.3M
Total Liabilities	2.73B	2.51B	2.36B	2.12B	2.37B	2.26B	2.15B	2.18B	1.91B	1.81B
Total Debt+	2.16B	1.89B	1.76B	1.57B	1.7B	1.57B	1.37B	1.29B	1.14B	1.02B
Net Debt	1.91B	1.54B	1.29B	1.38B	1.57B	1.3B	1.13B	965.15M	708.91M	807.78M
Debt / Equity	-	-	-	-	-	-	7.83x	3.37x	1.96x	1.27x
Debt / EBITDA	30.88x	19.55x	20.22x	13.20x	18.34x	10.74x	5.06x	3.45x	4.00x	3.81x
Net Debt / EBITDA	27.25x	15.96x	14.82x	11.62x	16.93x	8.94x	4.16x	2.58x	2.48x	3.02x
Interest Coverage	0.73x	1.02x	0.85x	1.12x	0.98x	1.35x	3.42x	7.78x	5.12x	8.44x
Total Equity+	-128.08M	-128.51M	-460.37M	-453.5M	-489.78M	-436.09M	175.38M	383.05M	581.79M	800.35M
Equity Growth %	-0.09%	-0%	-2.58%	0.01%	-0.08%	0.11%	1.4%	1.18%	0.52%	0.38%
Book Value per Share	-21.80	-21.79	-77.92	-74.29	-82.07	-66.24	27.43	56.93	87.28	114.22
Total Shareholders' Equity	-128.08M	-128.51M	-460.37M	-453.5M	-490.46M	-436.93M	174.9M	383.04M	581.74M	800.35M
Common Stock	1.59M	1.6M	1.6M	1.61M	67K	67K	68K	69K	70K	72K
Retained Earnings	-853.36M	-856.18M	-1.19B	-1.18B	-1.23B	-1.18B	-567.23M	-352.41M	-157.2M	74.14M
Treasury Stock	-115.36M	-115.36M	-115.36M	-115.36M	-115.36M	-115.36M	-115.36M	-127.58M	-132.38M	-158.91M
Accumulated OCI	-72.03M	-69.72M	-69.34M	-39.79M	0	0	0	0	0	0
Minority Interest	0	0	0	0	687K	835K	487K	15K	53K	0

Cash Flow

	Oct 2015	Oct 2016	Oct 2017	Oct 2018	Oct 2019	Oct 2020	Oct 2021	Oct 2022	Oct 2023	Oct 2024
Cash from Operations+	-320.54M	387M	301.58M	-66.82M	-249.13M	292.83M	210.21M	89.47M	435.27M	23.64M
Operating CF Margin %	-0.15%	0.14%	0.12%	-0.03%	-0.12%	0.12%	0.08%	0.03%	0.16%	0.01%
Operating CF Growth %	-0.68%	2.21%	-0.22%	-1.22%	-2.73%	2.18%	-0.28%	-0.57%	3.87%	-0.95%
Net Income	-16.1M	-2.82M	-332.19M	4.52M	-42.12M	50.93M	607.82M	225.49M	205.89M	242.01M
Depreciation & Amortization	3.39M	3.56M	4.25M	3.16M	4.17M	5.3M	5.28M	5.46M	8.8M	7.73M
Stock-Based Compensation	8.82M	2.92M	557K	3.67M	721K	2.78M	7.67M	10.28M	14.23M	25.27M
Deferred Taxes	-4.69M	6.85M	285.58M	0	0	0	0	0	0	0
Other Non-Cash Items	-8.1M	19.34M	107.94M	-6.06M	22.53M	77.88M	-37.74M	36.24M	-34.8M	-104.68M
Working Capital Changes	-303.85M	357.14M	235.44M	-72.11M	-234.43M	155.94M	-372.81M	-188M	241.16M	-146.68M
Change in Receivables	0	22.91M	5.25M	20.67M	-15.91M	20.52M	-3.02M	-2.63M	11.3M	-11.9M
Change in Inventory	-312.31M	328.14M	255.44M	-58.8M	-220.61M	87.9M	-35.51M	-279M	278.67M	-183.52M
Change in Payables	-10.59M	13.09M	-21.88M	-31.39M	-2.67M	33.58M	71.37M	7.71M	-59.55M	-349K
Cash from Investing+	2.47M	-51.88M	-29.71M	35.5M	-8.31M	2.14M	9M	-2.15M	-78.23M	-46.47M
Capital Expenditures	-2.05M	-8.01M	-6.48M	-5.19M	-4M	-3.38M	-5.94M	-12.59M	-18.82M	-17.86M
CapEx % of Revenue	0%	0%	0%	0%	0%	0%	0%	0%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	23.23M	6.03M	13.57M	66.97M	8.95M	25.44M	31.49M	10.4M	18.41M	5.82M
Cash from Financing+	309.91M	-245.67M	-147.84M	-229.43M	206.71M	-167.77M	-217.27M	-16.52M	-261.71M	-187.93M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	-818K	-11.46M	-10.68M	-10.68M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-9.02M	-11.47M	-14.56M	-8.04M	-16.07M	-13.28M	-2.55M	-10.23M	-13.87M	-3.97M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-322.59M	378.99M	295.1M	-72.02M	-253.13M	289.45M	204.27M	76.87M	416.45M	5.78M
FCF Margin %	-0.15%	0.14%	0.12%	-0.04%	-0.13%	0.12%	0.07%	0.03%	0.15%	0%
FCF Growth %	-0.66%	2.17%	-0.22%	-1.24%	-2.51%	2.14%	-0.29%	-0.62%	4.42%	-0.99%
FCF per Share	-54.90	64.26	49.95	-11.80	-42.41	43.96	31.94	11.43	62.47	0.83
FCF Conversion (FCF/Net Income)	19.91x	-137.28x	-0.91x	-14.78x	5.92x	5.75x	0.35x	0.40x	2.11x	0.10x
Interest Paid	85.72M	101.8M	89.84M	112.02M	109.11M	89.48M	87.23M	44.87M	62.58M	47.8M
Taxes Paid	1.78M	0	1.09M	2.52M	3.48M	3.01M	7.67M	14.06M	9.41M	9.69M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-	-	-	-	-	-	346.56%	80.76%	42.68%	35.02%
Return on Invested Capital (ROIC)	3.07%	4.37%	5.53%	9.89%	6.61%	10.81%	18.39%	20.85%	15.74%	13.43%
Gross Margin	15.03%	13.04%	14.32%	16.34%	14.8%	15.88%	19.43%	22.02%	21.05%	20.03%
Net Margin	-0.75%	-0.1%	-13.55%	0.23%	-2.09%	2.17%	21.84%	7.72%	7.47%	8.05%
Debt / Equity	-	-	-	-	-	-	7.83x	3.37x	1.96x	1.27x
Interest Coverage	0.73x	1.02x	0.85x	1.12x	0.98x	1.35x	3.42x	7.78x	5.12x	8.44x
FCF Conversion	19.91x	-137.28x	-0.91x	-14.78x	5.92x	5.75x	0.35x	0.40x	2.11x	0.10x
Revenue Growth	4.12%	28.1%	-10.92%	-18.78%	1.29%	16.21%	18.73%	5.01%	-5.69%	9.03%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Home Building	-	-	-	-	-	-	-	-	-	2.93B
Home Building Growth	-	-	-	-	-	-	-	-	-	-
Financial Service	-	-	-	-	-	-	-	-	-	74.06M
Financial Service Growth	-	-	-	-	-	-	-	-	-	-
Homebuilding	128.97M	5.8M	2.39B	1.94B	1.96B	2.27B	2.7B	2.86B	2.7B	-
Homebuilding Growth	-	-95.50%	41157.28%	-19.02%	1.28%	15.74%	18.90%	5.91%	-5.76%	-
Financial Services	-	72.62M	58.74M	53.35M	54.15M	72.16M	81.69M	61.54M	60.09M	-
Financial Services Growth	-	-	-19.11%	-9.17%	1.49%	33.26%	13.21%	-24.67%	-2.36%	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Southwest	823.85M	1.03B	827.5M	-	-	-	-	-	-	-
Southwest Growth	-	24.84%	-19.55%	-	-	-	-	-	-	-
Mid-Atlantic	-	458.58M	464.13M	-	-	-	-	-	-	-
Mid-Atlantic Growth	-	-	1.21%	-	-	-	-	-	-	-
West	159.97M	342.45M	430.55M	-	-	-	-	-	-	-
West Growth	-	114.07%	25.73%	-	-	-	-	-	-	-
Southeast	207.66M	260.58M	260.4M	-	-	-	-	-	-	-
Southeast Growth	-	25.48%	-0.07%	-	-	-	-	-	-	-
Northeast	189.5M	278.03M	209.51M	-	-	-	-	-	-	-
Northeast Growth	-	46.72%	-24.64%	-	-	-	-	-	-	-
Midwest	311.45M	311.32M	199.77M	-	-	-	-	-	-	-
Midwest Growth	-	-0.04%	-35.83%	-	-	-	-	-	-	-
Mid Atlantic	399.5M	-	-	-	-	-	-	-	-	-
Mid Atlantic Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Hovnanian Enterprises, Inc. (HOV) has a price-to-earnings (P/E) ratio of 3.9x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Hovnanian Enterprises, Inc. (HOV) reported $3.14B in revenue for fiscal year 2024. This represents a 177% increase from $1.13B in 2011.

Hovnanian Enterprises, Inc. (HOV) grew revenue by 9.0% over the past year. This is steady growth.

Yes, Hovnanian Enterprises, Inc. (HOV) is profitable, generating $158.9M in net income for fiscal year 2024 (8.1% net margin).

Dividend & Returns

Yes, Hovnanian Enterprises, Inc. (HOV) pays a dividend with a yield of 1.21%. This makes it attractive for income-focused investors.

Hovnanian Enterprises, Inc. (HOV) has a return on equity (ROE) of 35.0%. This is excellent, indicating efficient use of shareholder capital.

Hovnanian Enterprises, Inc. (HOV) generated $113.6M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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