Hovnanian Enterprises Inc

Consumer Discretionary
Homebuilding
www.khov.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.10B
PE 5
Debt $898.75M
Cash $15.50M
EV $1.98B
FCF $32.44M

Earnings

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Sales & Net Margins

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Earnings	$221.34M
EBIT	$320.62M
ROE	31%
ROA	13%
FCF	$32.44M
Equity	$703.38M
Growth Stability	68%
PE	4.97
PEG	0.17
PB	1.56
P/FCF	33.92
P/S	0.38
Price/Cash	0.01
Debt/Equity	1.28
Debt/FCF	27.71
Net Margins	7%
Op. Margins	11%
Earnings CAGR	43%
Sales Growth YoY	11%
Sales Growth QoQ	2%
Sales CAGR	3%
FCF CAGR	-3%
Equity CAGR	3%
Earnings Stability	0.36
Earnings Growth YoY	40%
Earnings Growth QoQ	50%

Earnings CAGR 5Y	30%
Sales CAGR 5Y	7%
FCF CAGR 5Y	12%
Equity CAGR 5Y	73%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	9%
Equity CAGR 3Y	64%
Market Cap	$1.10B
Revenue	$2.91B
Dividend Yield	1%
Payout Ratio	5%
Assets	$2.54B
Total Debt	$898.75M
Cash	$15.50M
Shares Outstanding	6.47M
EV	1.98B
Earnings Score	35%
Moat Score	92%
Safety Score	66%
Final Score	64%
Shares Growth 3y	0%
Equity Growth QoQ	9%
Equity Growth YoY	46%

Assets & ROA

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Stockholders Equity & ROE

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Hovnanian Enterprises Inc is an American construction company that focuses on residential construction. The company specializes in single-family housing and multi-unit building construction in Texas, Arizona, California, Virginia, Florida, Illinois, Ohio, and Pennsylvania. Hovnanian Enterprises builds homes and communities that target first-time, move-up, and luxury homebuyers. Historically, home sales around Texas, especially Houston, Arizona, and California have been the leading sources of revenue. The company also focuses on land purchasing and development to support future construction efforts as well as mortgage services for its homebuyers.

SEC Filings

Direct access to Hovnanian Enterprises Inc (HOV) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2022
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Hovnanian Enterprises Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Hovnanian Enterprises Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 43%

Stability 36%

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Hovnanian Enterprises Inc Discounted Cash Flow

Fully customizable DCF calculator online for Hovnanian Enterprises Inc.

Years

Calculation mode

= $258M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$32M	$31M	$30M	$29M	$28M	$27M	$26M	$25M	$25M	$24M	$23M	$229M
DCF		$28M	$25M	$22M	$19M	$17M	$15M	$13M	$11M	$10M	$8.8M	$88M
Value	$258M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Net Margins	-1%	-0%	-14%	0%	-2%	2%	20%	7%	7%	7%
ROA	-	0%	-2%	0%	-2%	1%	9%	22%	10%	13%
ROE	-	2%	72%	-1%	9%	-11%	314%	51%	31%	31%

Bad Net Margins (6.67%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Debt over FCF	-	4.23	5.53	-20.74	-6.12	4.96	6.14	15.02	2.57	27.71
Debt over Equity	-14.51	-12.5	-3.5	-3.29	-3.16	-3.29	7.15	3.01	1.84	1.28
Growth Stability	-	-	-	-	-	-	100%	100%	68%	68%

Bad Debt/FCF ratio (27.71)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.28)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (68%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	CAGR 5Y
Revenue YoY growth	-	28%	-11%	-19%	1%	16%	19%	5%	-6%	7%
Earnings YoY growth	-	-82%	12K%	-101%	-1K%	-210%	1K%	-65%	-8%	30%
Equity YoY growth	-	0%	258%	-1%	8%	-11%	-140%	118%	52%	73%
FCF YoY growth	-	-218%	-23%	-125%	251%	-214%	-29%	-62%	442%	12%