Latest Ratios: P/E Ratio 19.9x · EV/EBITDA 16.9x · ROE 7.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $748M | $775M | $1.2B | $463M | $271M | $539M | $209M | $150M | $223M | $357M | $230M |
| Enterprise Value | $1.4B | $1.4B | $2.0B | $1.2B | $1.3B | $1.7B | $1.5B | $1.7B | $1.6B | $1.6B | $1.8B |
| P/E Ratio → | 19.86 | 16.18 | 5.54 | 2.58 | 1.39 | 0.98 | 4.52 | — | 49.32 | — | — |
| P/S Ratio | 0.25 | 0.26 | 0.41 | 0.17 | 0.09 | 0.19 | 0.09 | 0.07 | 0.11 | 0.15 | 0.08 |
| P/B Ratio | 1.15 | 0.93 | 1.54 | 0.80 | 0.71 | 3.07 | — | — | — | — | — |
| P/FCF | 4.50 | 4.67 | 213.37 | 1.11 | 3.53 | 2.64 | 0.72 | — | — | 1.21 | 0.61 |
| P/OCF | 3.97 | 4.12 | 52.18 | 1.06 | 3.03 | 2.56 | 0.71 | — | — | 1.19 | 0.59 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.48 | 0.68 | 0.43 | 0.43 | 0.61 | 0.65 | 0.85 | 0.81 | 0.67 | 0.64 |
| EV / EBITDA | 16.92 | 16.92 | 7.64 | 4.20 | 3.60 | 6.40 | 10.37 | 18.54 | 13.49 | 18.93 | 18.34 |
| EV / EBIT | 20.23 | 11.79 | 5.87 | 4.36 | 3.65 | 6.54 | 10.95 | 24.53 | 16.31 | 32.99 | 23.19 |
| EV / FCF | — | 8.62 | 353.10 | 2.88 | 16.33 | 8.25 | 5.23 | — | — | 5.58 | 4.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.1% | 14.1% | 20.0% | 21.0% | 22.0% | 19.4% | 15.9% | 14.8% | 16.3% | 14.3% | 13.0% |
| Operating Margin | 2.4% | 2.4% | 8.6% | 10.0% | 11.8% | 9.3% | 6.0% | 4.4% | 5.8% | 3.4% | 3.4% |
| Net Profit Margin | 2.1% | 2.1% | 8.1% | 7.5% | 7.7% | 21.8% | 2.2% | -2.1% | 0.2% | -13.5% | -0.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.8% | 7.8% | 35.0% | 42.7% | 80.8% | 346.6% | — | — | — | — | — |
| ROA | 2.4% | 2.4% | 9.5% | 8.1% | 9.2% | 29.3% | 2.7% | -2.4% | 0.3% | -15.5% | -0.1% |
| ROIC | 3.4% | 3.4% | 13.3% | 15.5% | 19.2% | 17.7% | 10.8% | 6.6% | 9.9% | 5.5% | 4.4% |
| ROCE | 3.0% | 3.0% | 13.3% | 14.3% | 18.1% | 16.2% | 9.7% | 6.2% | 8.3% | 5.1% | 5.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.15 | 1.15 | 1.27 | 2.01 | 3.42 | 7.94 | — | — | — | — | — |
| Debt / EBITDA | 11.30 | 11.30 | 3.81 | 4.09 | 3.75 | 5.29 | 10.74 | 18.34 | 13.20 | 20.22 | 19.55 |
| Net Debt / Equity | — | 0.79 | 1.01 | 1.26 | 2.57 | 6.54 | — | — | — | — | — |
| Net Debt / EBITDA | 7.76 | 7.76 | 3.02 | 2.57 | 2.82 | 4.36 | 8.94 | 16.93 | 11.62 | 14.82 | 15.96 |
| Debt / FCF | — | 3.96 | 139.73 | 1.77 | 12.80 | 5.61 | 4.50 | — | — | 4.36 | 4.07 |
| Interest Coverage | 3.43 | 3.43 | 11.31 | 5.08 | 7.26 | 3.32 | 1.33 | 0.78 | 0.95 | 0.51 | 0.84 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2904.11 | 2904.11 | 0.81 | 3.24 | 3.57 | 3.06 | 3.50 | 4.28 | 4.00 | 3.73 | 3.49 |
| Quick Ratio | 1404.66 | 1404.66 | -2.10 | 1.08 | 0.80 | 0.68 | 0.83 | 0.68 | 0.81 | 1.34 | 1.48 |
| Cash Ratio | 1228.70 | 1228.70 | 0.37 | 0.69 | 0.59 | 0.47 | 0.59 | 0.37 | 0.56 | 1.11 | 0.54 |
| Asset Turnover | — | 1.13 | 1.15 | 1.11 | 1.14 | 1.20 | 1.28 | 1.07 | 1.20 | 1.29 | 1.16 |
| Inventory Turnover | 7.68 | 7.68 | 1.46 | 1.61 | 1.50 | 1.79 | 1.65 | 1.33 | 1.55 | 2.08 | 1.87 |
| Days Sales Outstanding | — | 3.24 | 3.57 | 3.71 | 4.73 | 5.24 | 5.25 | 8.13 | 6.45 | 8.66 | 6.59 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.4% | 0.9% | 2.3% | 0.3% | 0.2% | — | — | — | — | — |
| Payout Ratio | — | — | — | — | 0.3% | 0.1% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 6.2% | 18.1% | 38.7% | 71.9% | 101.9% | 22.1% | — | 2.0% | — | — |
| FCF Yield | 22.2% | 21.4% | 0.5% | 89.9% | 28.3% | 37.9% | 138.4% | — | — | 82.6% | 164.8% |
| Buyback Yield | 4.0% | 3.9% | 2.2% | 1.0% | 4.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.2% | 5.3% | 3.0% | 3.3% | 4.8% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $6M | $7M | $7M | $7M | $6M | $7M | $6M | $6M | $6M | $6M |
High leverage and volatility
According to current market data, HOV trades at a P/E of 19.86 and a P/S of 0.25, suggesting that investors are applying a significant discount to the company's earnings potential compared to the broader residential construction sector, likely due to persistent concerns regarding its historical leverage profile.
The forward P/E of 117.10 implies that the market is pricing in substantial earnings volatility or a potential contraction in future profitability. This valuation gap relative to peers like D.R. Horton or PulteGroup suggests that the market remains skeptical of the company's ability to sustain margin expansion in a high-interest-rate environment.
Based on reported financial statements, HOV's ROIC has fluctuated wildly from 28.4% in 2026Q1 to 0.8% in 2026Q2, indicating that the company struggles to consistently compound capital in a manner that creates long-term shareholder value compared to more stable, larger-scale industry competitors.
The extreme variance in ROIC suggests that the company's returns are heavily influenced by non-recurring items or timing differences in land development rather than operational excellence. Investors should monitor whether management can stabilize these returns, as current levels appear insufficient to justify the company's cost of capital.
As reported in recent filings, HOV's cash conversion cycle has shown extreme volatility, swinging from -1049 days in 2026Q1 to -22 days in 2026Q2, which highlights the company's difficulty in managing inventory and payables effectively compared to the more predictable cycles of its larger peers.
The erratic nature of the CCC suggests that the company's working capital management is highly sensitive to the timing of project completions and land acquisitions. This lack of operational consistency may force the company to maintain higher cash balances, further limiting its ability to deploy capital toward growth initiatives.
According to recent balance sheet data, HOV maintains a debt-to-EBITDA ratio of 50.25 as of 2026Q2, a figure that signals a highly vulnerable capital structure that leaves the company with minimal room for error during cyclical downturns in the housing market.
The interest coverage ratio of 1.21 indicates that the company is barely generating enough operating income to service its debt obligations. This precarious position warrants close monitoring, as any further compression in margins could quickly lead to liquidity stress and potential refinancing difficulties.
The P/E ratio is frequently misapplied to HOV, as it obscures the impact of non-cash tax valuation allowances and interest capitalization that artificially inflate or deflate reported net income, making it a poor metric for assessing the company's true underlying cash-generating capability.
Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the company's operational performance and debt-servicing capacity. Relying on P/E in this context risks ignoring the significant leverage and accounting nuances that define the company's actual financial health.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HOV stock.
Hovnanian Enterprises, Inc.'s current P/E ratio is 19.9x. The historical average is 15.0x. This places it at the 85th percentile of its historical range.
Hovnanian Enterprises, Inc.'s current EV/EBITDA is 16.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Hovnanian Enterprises, Inc.'s return on equity (ROE) is 7.8%. The historical average is 30.2%.
Based on historical data, Hovnanian Enterprises, Inc. is trading at a P/E of 19.9x. This is at the 85th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hovnanian Enterprises, Inc.'s current dividend yield is 1.12%.
Hovnanian Enterprises, Inc. has 14.1% gross margin and 2.4% operating margin.
Hovnanian Enterprises, Inc.'s Debt/EBITDA ratio is 11.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.