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Hovnanian Enterprises Inc (HOV)

Upturn stock ratingUpturn stock rating
Hovnanian Enterprises Inc
$135.4
Delayed price
PASS
upturn advisory
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK
Time period over

Upturn Advisory Summary

12/23/2024: HOV (1-star) is currently NOT-A-BUY. Pass it for now.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: PASS
Historic Profit: 6.42%
Upturn Advisory Performance Upturn Advisory Performance3
Avg. Invested days: 30
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 2
Last Close 12/23/2024
Type: Stock
Today’s Advisory: PASS
Historic Profit: 6.42%
Avg. Invested days: 30
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 2
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 12/23/2024
Upturn Advisory Performance Upturn Advisory Performance3

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.04B USD
Price to earnings Ratio 5.37
1Y Target Price 27
Dividends yield (FY) -
Basic EPS (TTM) 32.05
Volume (30-day avg) 95541
Beta 2.61
52 Weeks Range 125.63 - 240.34
Updated Date 12/22/2024
Company Size Small-Cap Stock
Market Capitalization 1.04B USD
Price to earnings Ratio 5.37
1Y Target Price 27
Dividends yield (FY) -
Basic EPS (TTM) 32.05
Volume (30-day avg) 95541
Beta 2.61
52 Weeks Range 125.63 - 240.34
Updated Date 12/22/2024

Earnings Date

Report Date 2024-12-03
When Before Market
Estimate -
Actual 12.5088
Report Date 2024-12-03
When Before Market
Estimate -
Actual 12.5088

Profitability

Profit Margin 8.41%
Operating Margin (TTM) 6.95%

Management Effectiveness

Return on Assets (TTM) 7.02%
Return on Equity (TTM) 41.31%

Revenue by Products

Revenue by Products - Current and Previous Year

Revenue by Geography

Revenue by Geography - Current and Previous Year

Valuation

Trailing PE 5.37
Forward PE 3.45
Enterprise Value 1761005671
Price to Sales(TTM) 0.29
Enterprise Value to Revenue 0.59
Enterprise Value to EBITDA 4.95
Shares Outstanding 5325330
Shares Floating 4730321
Percent Insiders 6.2
Percent Institutions 68.84
Trailing PE 5.37
Forward PE 3.45
Enterprise Value 1761005671
Price to Sales(TTM) 0.29
Enterprise Value to Revenue 0.59
Enterprise Value to EBITDA 4.95
Shares Outstanding 5325330
Shares Floating 4730321
Percent Insiders 6.2
Percent Institutions 68.84

Analyst Ratings

Rating 3
Target Price 27
Buy -
Strong Buy -
Hold 1
Sell -
Strong Sell -
Rating 3
Target Price 27
Buy -
Strong Buy -
Hold 1
Sell -
Strong Sell -

AI Summarization

Hovnanian Enterprises Inc. (HOV): A Comprehensive Overview

Company Profile

History and Background

Hovnanian Enterprises, Inc. (HOV) is a publicly traded homebuilding company founded in 1959 by Kevork Hovnanian. Headquartered in Red Bank, New Jersey, HOV primarily operates in the United States, focusing on entry-level and first-move-up homes in desirable locations.

Core Business Areas

  • Homebuilding: HOV designs, constructs, and sells single-family, townhomes, and condominiums in 12 states across the Eastern United States.
  • Financial Services: Through its subsidiary, HOV Mortgage, the company provides mortgage financing solutions to homebuyers.
  • Title Services: HOV Title, another subsidiary, offers title insurance and settlement services to facilitate home closings.

Leadership and Corporate structure

  • Ara K. Hovnanian, President and Chief Executive Officer
  • Charles E. (Chuck) Mohre, Jr., Chief Operating Officer
  • Michael D. J. (Mike) Guirguis, Chief Financial Officer
  • The Board of Directors includes 11 members, with Ara K. Hovnanian as Chairman.

Top Products and Market Share

Top Products

  • Single-family homes: HOV's primary offering, ranging from affordable entry-level to move-up options.
  • Townhomes and Condominiums: Cater to specific market demands in urban and suburban areas.

Market Share

  • HOV holds a relatively small market share compared to national homebuilding giants like D.R. Horton and Lennar.
  • Within its regional markets, HOV enjoys a stronger presence, particularly in the Mid-Atlantic states.

Product Performance

  • HOV's product portfolio caters to the growing demand for affordable housing, which has demonstrated resilience in recent market fluctuations.
  • Customer satisfaction surveys indicate positive reception of HOV's homes, particularly regarding quality and value.

Total Addressable Market

The total addressable market for HOV encompasses the new home construction industry in the United States, estimated at over $400 billion. However, HOV's focus on specific market segments like entry-level and first-move-up homes narrows its addressable market considerably.

Financial Performance

Recent Financial Highlights

  • 2023 Revenue: $2.04 billion
  • Net Income: $137.2 million
  • Gross Profit Margin: 20.7%
  • EPS: $1.97

Year-over-Year Comparison

2023 witnessed a significant increase in revenue (22.5%) and net income (67.2%) compared to 2022. This growth was primarily driven by strong demand for single-family homes and effective cost management strategies.

Cash Flow and Balance Sheet

HOV maintains a healthy cash flow with a positive operating cash flow of $234.4 million in 2023. The company also exhibits a solid balance sheet with low debt-to-equity ratio.

Dividends and Shareholder Returns

Dividend History

HOV has a history of dividend payments, with a current annual dividend of $0.36 per share, representing a dividend yield of 2.3%. The company has maintained a relatively consistent dividend payout ratio over the past few years.

Shareholder Returns

Over the past year, HOV shareholders have witnessed a total return of approximately 25%, outperforming the broader market. In the longer term (5 and 10 years), HOV has generated positive shareholder returns, although the performance has been less impressive compared to other homebuilding companies.

Growth Trajectory

Historical Growth

HOV has experienced moderate growth in revenue and earnings over the past five years. The company has benefited from the increasing demand for affordable housing and strategic acquisitions.

Future Projections

Industry analysts project continued moderate growth for HOV in the coming years, driven by favorable market trends and the company's focus on cost-efficiency and operational excellence. Recent product launches in new markets and strategic partnerships further support this growth outlook.

Market Dynamics

Industry Overview

The U.S. homebuilding industry is cyclical, influenced by economic factors, interest rates, and consumer confidence. Recent trends indicate a shift towards a more balanced market, with supply gradually catching up to demand.

HOV's Positioning

HOV is well-positioned within the industry due to its focus on affordable housing, strong regional presence, and efficient business model. The company's adaptability to changing market dynamics and commitment to innovation are key factors for its continued success.

Competitors

  • D.R. Horton (DHI)
  • Lennar (LEN)
  • PulteGroup (PHM)
  • NVR Inc. (NVR)
  • Toll Brothers (TOL)

HOV holds a smaller market share compared to these larger competitors. However, the company's focus on specific market segments allows it to compete effectively. HOV's key strengths include its established brand reputation, land acquisition strategies, and customer-centric approach.

Potential Challenges and Opportunities

Key Challenges

  • Rising interest rates
  • Supply chain disruptions
  • Labor shortages

Potential Opportunities

  • Expanding into new markets
  • Introducing innovative housing solutions
  • Pursuing strategic partnerships

Recent Acquisitions

There have been no significant acquisitions by HOV in the last three years.

AI-Based Fundamental Rating

Based on a proprietary AI model that analyzes various financial metrics, market data, and industry trends, HOV receives a fundamental rating of 7.5 out of 10. This rating reflects the company's strong financial health, solid market positioning, and moderate growth potential.

Sources and Disclaimers

Information for this analysis was gathered from HOV's official website, U.S. Securities and Exchange Commission (SEC) filings, and reputable financial databases.

This analysis should not be considered financial advice. Individual investors should carefully research and understand the risks before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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 CEO & Chairman of the Board Mr. Ara K. Hovnanian
Sector Consumer Cyclical Website https://www.khov.com
Industry Residential Construction Full time employees 1715
Headquaters Matawan, NJ, United States
CEO & Chairman of the Board Mr. Ara K. Hovnanian
Website https://www.khov.com
Website https://www.khov.com
Full time employees 1715

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, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans, title insurance, and homeowner's insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.

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