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Hovnanian Enterprises Inc (HOVNP) stock analysis

HOVNPNasdaqOperative BuildersFiscal year ends October 31Also trades as HOV, HOVVB
Financials through Q3 FY2026, quarter ended Jul 31, 2026Last filing: 10-Q on Aug 28, 2026Score 6/306% below fair value
$13.50−0.60 (-4.26%)

Close on Oct 30, 2026Market cap $592.47MP/E 111.7Yield –

StockData Score

Prices as of Oct 30, 2026How the score works

Value2Growth0Performance0Health4Dividend0

Weak6 of 30 checks passed

Hovnanian Enterprises passes 6 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
2/6
Growth
0/6
Past performance
0/6
Financial health
4/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $99.41 is below our fair value estimate of $105.61.

  • No debt

    Hovnanian Enterprises has no borrowings on its latest balance sheet.

  • Interest well covered

    No meaningful interest expense to cover.

  • Debt covered by cash flow

    There is no debt to cover.

What to watch

  • Margin of safety under 20%

    The price is 5.9% below fair value, less than the 20% cushion we look for.

  • Revenue growing under 10% a year

    Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -36.5% a year over the last three fiscal years.

  • Elevated bankruptcy risk

    The Altman Z-score is 1.23; above 3 is the safe zone and below 1.8 the distress zone.

Valuation2/6

  • P/E above its 5-year median

    Hovnanian Enterprises's P/E of 111.7 is above its own 5-year median of 4.3.

  • P/E above the industry

    Hovnanian Enterprises's P/E of 111.7 is above the Operative Builders median of 13.7.

  • EV/EBITDA above its 5-year median

    Hovnanian Enterprises's EV/EBITDA of 15.6 is above its 5-year median of 3.1.

  • P/B below the industry

    Hovnanian Enterprises's price-to-book of 0.72 is below the Operative Builders median of 1.15.

  • Trading below fair value

    The share price of $99.41 is below our fair value estimate of $105.61.

  • Margin of safety under 20%

    The price is 5.9% below fair value, less than the 20% cushion we look for.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -36.5% a year over the last three fiscal years.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew -10.1% over the last twelve months; the Operative Builders median is -5.7%.

  • Guidance issued

    The latest outlook (fourth quarter of fiscal 2026 total revenues, Aug 20, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin trend

    This company does not report gross profit.

Past performance0/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health4/6

  • No debt

    Hovnanian Enterprises has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term liquidity

    The balance sheet is not split into current and non-current items.

  • Elevated bankruptcy risk

    The Altman Z-score is 1.23; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Hovnanian Enterprises has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$105.61

The share price is 6% below this estimate.

20%+ below
Near fair value
20%+ above
$99.41Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/Eleft out, too far from the others9.0×4.3×13.7×$7.97–
EV/EBITDA5.7×3.1×8.3×$36.0958%
P/B1.2×1.2×1.2×$161.8917%
Earnings power15.0% cost of equity––$230.2925%
Fair value$105.61100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 4.3
  • Operative Builders median 13.7

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$12.85M
Value traded per 1% price move
$5.11M

Downside

Medium risk

Typical loss in a bad month
22.7%
Volatility (annualized)
63%
Sharpe ratio, 1 year
-0.40
Beta to the S&P 500 (5Y)
2.11

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

–