Hovnanian Enterprises, Inc. (HOV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cavco Industries, Inc.

Green Brick Partners, Inc.

Patrick Industries, Inc.

Dream Finders Homes, Inc.

Frontdoor, Inc.

M/I Homes, Inc.

Century Communities, Inc.

Beazer Homes USA, Inc.

Hovnanian Enterprises, Inc.

Tri Pointe Homes, Inc.

LGI Homes, Inc.

Why is Hovnanian Enterprises, Inc. ?

ROCE(HY) Lowest at 20.08%
INTEREST COVERAGE RATIO(Q) Lowest at 269.63
OPERATING PROFIT MARGIN(Q) Lowest at 2.41 %

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -45.35% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hovnanian Enterprises, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hovnanian Enterprises, Inc.

-45.35%

-0.46

68.31%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.83%

EBIT Growth (5y)

10.27%

EBIT to Interest (avg)

5.76

Debt to EBITDA (avg)

3.79

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

1.70

Tax Ratio

23.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

76.34%

ROCE (avg)

18.93%

ROE (avg)

174.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.72

EV to EBIT

5.27

EV to EBITDA

5.09

EV to Capital Employed

0.86

EV to Sales

0.46

PEG Ratio

Dividend Yield

ROCE (Latest)

16.32%

ROE (Latest)

25.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 89.36 %

-27What is not working for the Company

ROCE(HY)

Lowest at 20.08%

INTEREST COVERAGE RATIO(Q)

Lowest at 269.63

OPERATING PROFIT MARGIN(Q)

Lowest at 2.41 %

RAW MATERIAL COST(Y)

Grown by 31% (YoY

CASH AND EQV(HY)

Lowest at USD 314.03 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.54 times

OPERATING PROFIT(Q)

Lowest at USD 19.28 MM

PRE-TAX PROFIT(Q)

Lowest at USD 24.45 MM

NET PROFIT(Q)

Lowest at USD 16.83 MM

EPS(Q)

Lowest at USD 1.99

Here's what is working for Hovnanian Enterprises, Inc.

Debt-Equity Ratio

Lowest at 89.36 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 3.19 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Hovnanian Enterprises, Inc.

Pre-Tax Profit

At USD 24.45 MM has Fallen at -74.71%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 16.83 MM has Fallen at -76.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 269.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 2.41 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at USD 19.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 24.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 16.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.99

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 314.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 21.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.65 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income