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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cavco Industries, Inc.

Frontdoor, Inc.

Green Brick Partners, Inc.

Patrick Industries, Inc.

M/I Homes, Inc.

Century Communities, Inc.

Dream Finders Homes, Inc.

Tri Pointe Homes, Inc.

LGI Homes, Inc.

Hovnanian Enterprises, Inc.

Beazer Homes USA, 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 %

With ROCE of 16.32%, it has a attractive valuation with a 0.86 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -35.25%, its profits have fallen by -9.2%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -35.25% 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.

44.04%

-0.44

68.84%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.96%

EBIT Growth (5y)

-3.80%

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

83.85%

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

0.84

EV to EBIT

9.50

EV to EBITDA

8.55

EV to Capital Employed

0.90

EV to Sales

0.43

PEG Ratio

Dividend Yield

ROCE (Latest)

9.52%

ROE (Latest)

10.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

CASH AND EQV(HY)

Highest at USD 728.17 MM

DEBT-EQUITY RATIO (HY)

Lowest at 75.77 %

-27What is not working for the Company

INTEREST(HY)

At USD 24.65 MM has Grown at 32.08%

ROCE(HY)

Lowest at 4.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 148.92

RAW MATERIAL COST(Y)

Grown by 5.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.45 times

OPERATING PROFIT(Q)

Lowest at USD 18.6 MM

PRE-TAX PROFIT(Q)

Lowest at USD 1.46 MM

NET PROFIT(Q)

Lowest at USD -2.26 MM

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

Cash and Eqv

Highest at USD 728.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 75.77 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

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

Pre-Tax Profit

At USD 1.46 MM has Fallen at -94.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -2.26 MM has Fallen at -111.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 148.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 24.65 MM has Grown at 32.08%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 18.6 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 1.46 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 -2.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 1.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.12% (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