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Hovnanian Enterprises
(NYSE:HOV)
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Rating:57Neutral
Price Target:
$134.00
▲(4.43% Upside)
Action:Reiterated
Date:08/29/26
Overall score reflects improved balance-sheet positioning and comparatively strong cash generation, plus supportive Q4 guidance pointing to sequential margin and profitability improvement. These positives are tempered by currently weak TTM profitability, neutral-to-soft near-term technicals, and a very high P/E that meaningfully detracts from the risk/reward profile.
Positive Factors
Cash Generation
Solid operating and free cash flow indicate that the business is converting reported earnings and working-capital activity into liquidity. This supports land investment, construction funding, debt service and resilience through housing-cycle volatility.
Negative Factors
Profitability Compression
Very thin current profitability leaves limited room to absorb weaker pricing, construction inflation or slower closings. Although prior years demonstrated earnings capacity, the recent decline shows that operating leverage remains highly sensitive to housing conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Solid operating and free cash flow indicate that the business is converting reported earnings and working-capital activity into liquidity. This supports land investment, construction funding, debt service and resilience through housing-cycle volatility.
Read all positive factors
Hovnanian Enterprises (HOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$734.58M
Dividend YieldN/A
Average Volume (3M)119.86K
Price to Earnings (P/E)124.8
Beta (1Y)1.21
Revenue Growth-10.16%
EPS Growth-95.27%
CountryUS
Employees1,891
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)1.04
Shares Outstanding5,071,686
10 Day Avg. Volume148,077
30 Day Avg. Volume119,855
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.93
Price to Sales (P/S)0.26
P/FCF Ratio4.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.26
Revenue Forecast (FY)$2.81B
Hovnanian Enterprises Business Overview & Revenue Model
Company Description
Hovnanian Enterprises, Inc. is a leading company focused on the entire process of developing residential properties across the United States. This includes everything from the initial design and construction to the marketing and eventual sale of h...
How the Company Makes Money
Hovnanian Enterprises makes money primarily by building and selling newly constructed homes. Its core revenue stream is home sales revenue recognized when a home is delivered/closed to the buyer, which reflects the contracted selling price of the ...
Hovnanian Enterprises Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call balanced near-term challenges (a narrow adjusted pretax miss, lower JV income, elevated incentives, some choppiness in contracts, and modest cost pressures) against stronger underlying operational and financial positioning (revenues slightly above midpoint, sequential gross margin improvement, strong liquidity, improved land mix with 87% option lots, a 29% reduction in QMI inventory since early 2025, a high 74% backlog conversion, and constructive Q4 guidance). Management emphasized disciplined underwriting, capital efficiency, and a path to continued margin recovery. On balance, the progress on margins, balance sheet strength, land-mix improvement, and robust guidance for Q4 outweigh the transitory operational setbacks described for the quarter.Positive Updates
Revenue in Line with Guidance
Total revenues were $706 million in Q3, slightly above the midpoint of guidance. Company provided Q4 revenue guidance of $800M–$900M (midpoint $850M), implying ~20.4% sequential increase versus Q3 at the midpoint.
Negative Updates
Adjusted Pretax Miss for the Quarter
Adjusted pretax was a loss of $2 million in Q3, slightly below the bottom of the guidance range (guidance bottom $0). Management noted this is the first time in 23 quarters adjusted pretax finished below the guidance range.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue in Line with Guidance
Total revenues were $706 million in Q3, slightly above the midpoint of guidance. Company provided Q4 revenue guidance of $800M–$900M (midpoint $850M), implying ~20.4% sequential increase versus Q3 at the midpoint.
Read all positive updates
Company Guidance
Management guided fourth-quarter revenue of $800–$900 million, adjusted gross margin of 15.0%–16.5% (midpoint ~15.8%), SG&A of 10.5%–11.5% of revenues, income from joint ventures of $10–$20 million, adjusted EBITDA of $50–$65 million, and adjusted pretax income of $15–$30 million; the outlook assumes broadly stable market conditions, ongoing use of mortgage-rate buydowns and similar incentives, excludes land-sale proceeds and phantom stock expense tied to the $123.90 quarter‑end stock price, and anticipates a sequential increase in community count (147 communities at quarter end) with margin improvement as newer communities underwritten for today’s incentive environment comprise a larger share of deliveries.Hovnanian Enterprises Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.82B | 2.98B | 3.00B | 2.76B | 2.92B | 2.78B |
| Gross Profit | 904.23M | 420.67M | 601.79M | 580.14M | 643.43M | 540.80M |
| EBITDA | 80.30M | 135.39M | 355.57M | 283.75M | 372.55M | 272.86M |
| Net Income | 18.11M | 63.87M | 242.01M | 205.89M | 225.49M | 607.82M |
Balance Sheet | ||||||
| Total Assets | 2.86B | 2.63B | 2.61B | 2.49B | 2.56B | 2.32B |
| Cash, Cash Equivalents and Short-Term Investments | 258.30M | 272.77M | 209.98M | 434.12M | 326.20M | 245.97M |
| Total Debt | 934.90M | 930.21M | 1.02B | 1.14B | 1.31B | 1.39B |
| Total Liabilities | 2.04B | 1.80B | 1.81B | 1.91B | 2.18B | 2.15B |
| Stockholders Equity | 818.67M | 830.93M | 800.35M | 581.74M | 383.04M | 174.90M |
Cash Flow | ||||||
| Free Cash Flow | 197.78M | 166.18M | 5.78M | 416.45M | 76.87M | 204.27M |
| Operating Cash Flow | 218.84M | 188.28M | 23.64M | 435.27M | 89.47M | 210.21M |
| Investing Cash Flow | -43.69M | -66.01M | -46.47M | -78.23M | -2.15M | 9.00M |
| Financing Cash Flow | -78.98M | -70.39M | -187.93M | -261.71M | -16.52M | -217.27M |
Hovnanian Enterprises Technical Analysis
Positive
128.32
Price Trends
131.82
Negative
121.31
Positive
117.92
Positive
Market Momentum
-0.95
Positive
50.07
Neutral
66.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOV, the sentiment is Positive. The current price of 128.32 is below the 20-day moving average (MA) of 131.14, below the 50-day MA of 131.82, and above the 200-day MA of 117.92, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 66.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOV.
Hovnanian Enterprises Risk Analysis
Hovnanian Enterprises disclosed 2 risk factors in its most recent earnings report. Hovnanian Enterprises reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hovnanian Enterprises Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.97B | 15.10 | 5.21% | 1.76% | -8.37% | -45.09% | |
72 Outperform | $3.83B | 12.47 | 9.97% | ― | -4.94% | -35.08% | |
62 Neutral | $1.34B | 20.08 | 3.15% | ― | -16.52% | -57.00% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $734.58M | 124.78 | 2.19% | ― | -10.16% | -95.27% | |
49 Neutral | $886.30M | -113.65 | -0.65% | ― | -12.75% | -112.80% |
* Consumer Cyclical Sector Average
HOV
Hovnanian Enterprises
129.77
-6.46
-4.74%
BZH
Beazer Homes
33.22
8.38
33.74%
MHO
M/I Homes
151.40
4.69
3.20%
LGIH
LGI Homes
57.50
-3.00
-4.96%
CCS
Century Communities
69.16
4.57
7.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.