Hovnanian Enterprises, Inc. PFD DEP1/1000A Fundamental Analysis
Hovnanian Enterprises, Inc. PFD DEP1/1000A Fundamental Analysis
Hovnanian Enterprises, Inc. PFD DEP1/1000A (HOVNP) shows weak financial fundamentals with a PE ratio of 20.22, profit margin of 1.25%, and ROE of 4.39%. The company generates $66.6B in annual revenue with weak year-over-year growth of -0.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HOVNP's fundamental strength across five key dimensions:
Efficiency Score
WeakHOVNP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHOVNP trades at attractive valuation levels.
Growth Score
WeakHOVNP faces weak or negative growth trends.
Financial Health Score
WeakHOVNP carries high financial risk with limited liquidity.
Profitability Score
WeakHOVNP struggles to sustain strong margins.
Key Financial Metrics
Is HOVNP Expensive or Cheap?
P/E Ratio
HOVNP trades at 20.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HOVNP's PEG of -0.23 indicates potential undervaluation.
Price to Book
The market values Hovnanian Enterprises, Inc. PFD DEP1/1000A at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.31 times EBITDA. This is generally considered low.
How Well Does HOVNP Make Money?
Net Profit Margin
For every $100 in sales, Hovnanian Enterprises, Inc. PFD DEP1/1000A keeps $1.25 as profit after all expenses.
Operating Margin
Core operations generate 20.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.39 in profit for every $100 of shareholder equity.
ROA
Hovnanian Enterprises, Inc. PFD DEP1/1000A generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hovnanian Enterprises, Inc. PFD DEP1/1000A produces operating cash flow of $6.75B, showing steady but balanced cash generation.
Free Cash Flow
Hovnanian Enterprises, Inc. PFD DEP1/1000A produces free cash flow of $6.20B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $42.06 in free cash annually.
FCF Yield
HOVNP converts 47.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How HOVNP Stacks Against Its Sector Peers
| Metric | HOVNP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.22 | 23.82 | Better (Cheaper) |
| ROE | 4.39% | 1185.00% | Weak |
| Net Margin | 1.25% | 2545.00% | Weak |
| Debt/Equity | 1.13 | 0.71 | Weak (High Leverage) |
| Current Ratio | 0.91 | 2.82 | Weak Liquidity |
| ROA | 1.29% | -8457.00% (disorted) | Weak |
HOVNP outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hovnanian Enterprises, Inc. PFD DEP1/1000A's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
20.35%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-38.30%
Industry Style: Cyclical, Growth, Discretionary
Declining