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.

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Century Communities, Inc.

Dream Finders Homes, Inc.

M/I Homes, Inc.

Tri Pointe Homes, Inc.

Beazer Homes USA, Inc.

Hovnanian Enterprises, 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 %

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.

-4.46%

-0.44

68.84%

S&P 500

14.9%

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)

4.95%

EBIT Growth (5y)

-3.23%

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

78.39%

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

0.85

EV to EBIT

12.21

EV to EBITDA

10.83

EV to Capital Employed

0.91

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

7.49%

ROE (Latest)

11.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 76.86 %

-26What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 28.54 MM has Fallen at -76.19%

NET PROFIT(Q)

At USD 31.46 MM has Fallen at -65.85%

ROCE(HY)

Lowest at 7.69%

RAW MATERIAL COST(Y)

Grown by 41.9% (YoY

NET SALES(Q)

Fallen at -16.77%

INTEREST(Q)

Highest at USD 9.63 MM

EPS(Q)

Lowest at USD -0.6

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

Debt-Equity Ratio

Lowest at 76.86 %

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 5.35 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)

Depreciation

At USD 5.35 MM has Grown at 67.61%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

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

Pre-Tax Profit

At USD 28.54 MM has Fallen at -76.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 31.46 MM has Fallen at -65.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 9.63 MM has Grown at 34.7%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Fallen at -16.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 9.63 MM

in the last five periods and Increased by 34.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD -0.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 41.9% (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