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Upturn AI SWOT - About
HOV 
Hovnanian Enterprises Inc (HOV)
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Upturn Advisory Summary
04/01/2025: HOV (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 6.42% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.04B USD | Price to earnings Ratio 5.37 | 1Y Target Price 27 |
Price to earnings Ratio 5.37 | 1Y Target Price 27 | ||
Volume (30-day avg) 84552 | Beta 2.61 | 52 Weeks Range 95.27 - 240.34 | Updated Date 03/30/2025 |
52 Weeks Range 95.27 - 240.34 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 32.05 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.41% | Operating Margin (TTM) 6.95% |
Management Effectiveness
Return on Assets (TTM) 7.02% | Return on Equity (TTM) 41.31% |
Valuation
Trailing PE 5.37 | Forward PE 2.82 | Enterprise Value 1642394247 | Price to Sales(TTM) 0.2 |
Enterprise Value 1642394247 | Price to Sales(TTM) 0.2 | ||
Enterprise Value to Revenue 0.53 | Enterprise Value to EBITDA 4.53 | Shares Outstanding 5325330 | Shares Floating 4730321 |
Shares Outstanding 5325330 | Shares Floating 4730321 | ||
Percent Insiders 6.2 | Percent Institutions 68.84 |
Analyst Ratings
Rating 3 | Target Price 27 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Hovnanian Enterprises Inc
Company Overview
History and Background
Hovnanian Enterprises Inc. was founded in 1959 by Kevork S. Hovnanian. It is one of the nation's largest homebuilders, delivering homes in communities throughout the United States. The company has evolved through various economic cycles, adapting its product offerings and geographic footprint.
Core Business Areas
- Homebuilding: Designs, constructs, markets, and sells single-family detached homes, attached homes, and urban infill homes.
- Financial Services: Provides mortgage and title services to its homebuyers through affiliated entities.
Leadership and Structure
Ara K. Hovnanian serves as the Chairman of the Board, President and Chief Executive Officer. The company has a traditional corporate structure with various executive vice presidents overseeing key functions.
Top Products and Market Share
Key Offerings
- Single-Family Detached Homes: Standard single-family homes catering to various buyer segments. The market is competitive with many other large national and regional homebuilders. Revenue contributions vary by geographic location and market conditions.
- Attached Homes (Townhomes, Condominiums): More affordable housing options targeted towards first-time homebuyers and those seeking lower maintenance living. Market share varies by region. Competitors include D.R. Horton and Lennar.
- Active Adult Communities: Homes and communities designed for adults aged 55 and over, offering amenities and features tailored to their lifestyle. Competitors include PulteGroup's Del Webb brand and others focusing on active adult living. Market share is moderate and varies by location.
Market Dynamics
Industry Overview
The homebuilding industry is cyclical and influenced by economic factors such as interest rates, employment levels, and consumer confidence. Demand is currently fluctuating due to rising interest rates.
Positioning
Hovnanian operates in a highly competitive market. It aims to differentiate through design, location, and customer service. Hovnanian maintains a strong presence in the Northeast, but also has operations in other regions.
Total Addressable Market (TAM)
The U.S. homebuilding market is a multi-billion dollar industry. Hovnanian's TAM is influenced by its geographic footprint and product offerings. Hovnanian's position within this TAM depends on their execution in key markets and their ability to navigate economic fluctuations. TAM for US housing market expected to reach $950 Billion in 2024.
Upturn SWOT Analysis
Strengths
- Established brand name
- Geographic diversification
- Experience in the homebuilding industry
- Financial services arm
Weaknesses
- High debt levels
- Sensitivity to economic cycles
- Variable profitability
- Reliance on external financing
Opportunities
- Expanding into new markets
- Capitalizing on demographic trends (e.g., aging population)
- Adopting innovative building technologies
- Increasing focus on sustainable building practices
Threats
- Rising interest rates
- Increased material costs
- Labor shortages
- Economic downturns
- Changes in government regulations
Competitors and Market Share
Key Competitors
- DHI
- LEN
- PHM
- NVR
Competitive Landscape
Hovnanian faces intense competition from larger, well-capitalized homebuilders. Its advantages include its established brand and geographic diversification, but its high debt levels and sensitivity to economic cycles present challenges.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Assess the company's past growth in revenue, earnings, and market share. Historical data on new home orders is useful to study trends.
Future Projections: Obtain analyst estimates for future revenue, earnings, and EPS growth. The information must be refreshed quarterly and should be based on the latest analyst forecasts. Analyst forecasts usually range 1 - 5 years out.
Recent Initiatives: Highlight any recent strategic initiatives undertaken by the company, such as acquisitions, new product launches, or market expansions. This could include expansion into entry level homes to capture that part of the market.
Summary
Hovnanian Enterprises is navigating a challenging homebuilding market with high debt. Their brand recognition is a strength, but economic downturns pose a risk. Capitalizing on demographic trends and cost management are crucial. Overall, Hovnanian needs to monitor financial health in a volatile economy.
Similar Companies
- DHI
- LEN
- PHM
- NVR
- TOL
- MTH
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Investor presentations
- Press releases
- Analyst reports (FactSet, S&P Capital IQ)
- Industry reports (National Association of Home Builders)
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be construed as financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Hovnanian Enterprises Inc
Exchange NYSE | Headquaters Matawan, NJ, United States | ||
IPO Launch date 1992-03-17 | President, CEO & Chairman of the Board Mr. Ara K. Hovnanian | ||
Sector Consumer Cyclical | Industry Residential Construction | Full time employees 1878 | Website https://www.khov.com |
Full time employees 1878 | Website https://www.khov.com | ||
Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells 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, move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans and title services. Hovnanian Enterprises, Inc. was founded in 1959 and is headquartered in Matawan, New Jersey.
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