Hovnanian Enterprises, Inc. (HOV), Discounted Cash Flow Valuation

Hovnanian Enterprises, Inc. (HOV) Compañía Profile

US | Consumer Cyclical | Residential Construction | NYSE
97.02 -1.70 (-1.72%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
633.07M
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
3.08B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
246.29M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
7.07M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
1.18
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
4.71
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.94%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
81.85K
Open The opening trade price over the trading day.
97.8
Previous Close The last closing price.
98.72
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
2.43
1 day delta The range between the high and low prices over the past day.
94.9-98.09
52 weeks The range between the high and low prices over the past 52 weeks.
81.15-240.34

Total Valuation

Hovnanian Enterprises, Inc. has a market cap or net worth of 633.07M. The enterprise value is 1.52B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
633.07M
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
1.52B

Valuation Ratios

The trailing PE ratio is 2.57. Hovnanian Enterprises, Inc.'s PEG ratio is 0.1.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
2.57
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
0.21
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
0.78
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
15.5
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
0.1

Enterprise Valuation

The stock's EV/EBITDA ratio is 4.42, with a EV/FCF ratio of 37.21.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
0.49
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
4.42
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
27.4
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
37.21

Financial Efficiency

Return on equity (ROE) is 33.26% and return on invested capital (ROIC) is 29.19%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
33.26%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
9.72%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
29.19%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
1.15
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
10.52

Margins

Trailing 12 months gross margin is 19.17%, with operating and profit margins of 8.25% and 7.99%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
19.17%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
8.25%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
10.52%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
7.99%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
11.15%

Income Statement

In the last 12 months, Hovnanian Enterprises, Inc. had revenue of 3.08B and earned 246.29M in profits. Earnings per share (EPS) was 1.18.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
3.08B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
591.34M
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
254.46M
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
324.39M
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
246.29M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
343.96M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
343.26M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
1.18

Financial Position

The company has a trailing 12 months (ttm) current ratio of 0.94, with a ttm Debt / Equity ratio of 1.21.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
0.94
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
0.4
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
1.21
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.27

Dividends & Yields

This stock pays an annual dividend of 0, which amounts to a dividend yield of 0.00%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.00%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
38.95%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
6.45%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
-3.84%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
4.33%

Balance Sheet

The company has 94.26M in cash and 981.34M in debt, giving a net cash position of -887.08M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
94.26M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
981.34M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
-887.08M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
811.43M
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
124.51
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
-28.04M

Cash Flow

In the last 12 months, operating cash flow of the company was 55.49M and capital expenditures -16.1M, giving a free cash flow of 40.85M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
55.49M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-16.1M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
40.85M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
6.27

Hovnanian Enterprises, Inc. News

Apr 16, 2025 - seekingalpha.com
Hovnanian Enterprises: Shares Are Too Cheap To Pass Up
Hovnanian Enterprises, Inc. is a small-cap homebuilder with significant operational improvements, low debt, and attractive valuation multiples, making it one of the cheapest companies in the market. Despite a 22.8% drop in the HOV stock price since January, the company's revenue and net income have grown, driven by increased home sales and improved financial performance. Risks include housing market uncertainties due to tariffs and high interest rates, but the company's strong fundamentals and l...[read more]
Apr 11, 2025 - seekingalpha.com
Hovnanian Enterprises: Cheap With Plenty Of Caveats
Hovnanian Enterprises' stock has dropped over 35% in 2025 due to industry headwinds like high mortgage rates, low affordability, and new tariffs on building materials. Despite the selloff, Hovnanian trades at a very low P/E and is below book value, but increasing incentives and gross margins both bear watching. It is time to buy the dip in this home builder?  An analysis of Hovnanian Enterprises follows in the paragraphs below....[read more]
Apr 7, 2025 - zacks.com
Strength Seen in Hovnanian (HOV): Can Its 10.6% Jump Turn into More Strength?
Hovnanian (HOV) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road....[read more]
Feb 27, 2025 - zacks.com
Hovnanian Q1 Earnings Rise 23%, Margins Decline on Incentives
HOV's Q1 revenues grow 13%, but margins fall as incentives rise. Contracts increase, while the backlog declines amid shifting market dynamics....[read more]
Feb 24, 2025 - seekingalpha.com
Hovnanian Enterprises, Inc. (HOV) Q1 2025 Earnings Call Transcript
Hovnanian Enterprises, Inc. (NYSE:HOV ) Q1 2025 Earnings Conference Call February 24, 2025 11:00 AM ET Company Participants Jeff O'Keefe - Vice President, Investor Relations Ara Hovnanian - Chairman, President and CEO Brad O'Connor – Chief Financial Officer David Mitrisin - Vice President, Corporate Controller Paul Eberly - Vice President, Finance and Treasurer Conference Call Participants Alan Ratner - Zelman & Associates Alex Barron - Housing Research Center Jay McCanless - Wedbush Operator Go...[read more]
Feb 24, 2025 - globenewswire.com
Hovnanian Enterprises Reports Fiscal 2025 First Quarter Results
13% Increase in Total Revenues  Income Before Income Taxes Increased 22% Year-Over-Year  7% Year-Over-Year Quarterly Growth in Consolidated Contracts  Total Consolidated Lots Controlled Increased 29% Year-Over-Year...[read more]
Feb 10, 2025 - globenewswire.com
Hovnanian Enterprises Announces First Quarter Fiscal 2025 Earnings Release and Conference Call
MATAWAN, N.J., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, will release financial results for the first quarter ended January 31, 2025, the morning of Monday, February 24, 2025. The Company will webcast its first quarter earnings conference call at 11:00 a.m. (ET) on Monday, February 24, 2025....[read more]
Jan 13, 2025 - seekingalpha.com
Hovnanian Enterprises Is One Of The Most Compelling Prospects In This Market
Hovnanian Enterprises, Inc. is a top buying opportunity due to its low valuation, sizable backlog, and rising net new contracts despite recent stock volatility. The company's diverse home portfolio and strategic lot acquisition have strengthened its financial position, reducing debt and increasing book value. Persistent high-interest rates pose short-term risks, but long-term housing demand driven by population growth supports a positive outlook....[read more]
Dec 10, 2024 - zacks.com
Hovnanian Enterprises Q4 Earnings Decline Y/Y, Revenues Up
HOV's strategic focus on contracts and land expansion drives strong Q4 growth despite cost and margin pressures....[read more]
Dec 5, 2024 - seekingalpha.com
Hovnanian Enterprises, Inc. (HOV) Q4 2024 Earnings Call Transcript
Hovnanian Enterprises, Inc. (NYSE:HOV ) Q4 2024 Earnings Conference Call December 5, 2024 11:00 AM ET Company Participants Jeff O'Keefe - Vice President, Investor Relations Ara Hovnanian - Chairman, President, Chief Executive Officer Brad O'Connor - Chief Financial Officer and Treasurer Conference Call Participants Alan Ratner - Zelman & Associates Alex Barron - Housing Research Center Austin Hopper - AWH Capital Operator Good morning and thank you for joining us today for Hovnanian Enterprises ...[read more]

Hovnanian Enterprises, Inc. Details

Country US
City Matawan
Address 90 Matawan Road
Ticker Symbol HOV
Exchange New York Stock Exchange
IPO Date Sep 7, 1983
CEO Mr. Ara K. Hovnanian
Sector Consumer Cyclical
Industry Residential Construction
Employees 1.88K

Hovnanian Enterprises, Inc. Company Description

Hovnanian 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.

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