Hovnanian Enterprises (HOV) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Hovnanian Enterprises

NYSE•Consumer Cyclical•Residential Construction

$122.79+1.57(0.01%)Market closed

Market Cap

$747.13M

P/E

43.0x

P/S

0.3x

P/B

0.9x

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 based in Matawan, New Jersey.

How this company scores

AverageMetricSide Score: 41/100

Strongest: Cash & Earnings Quality (22/25); weakest: Growth (3/25).

Profitability4/25

Growth3/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality22/25

Strengths

Rising free cash flowCash-backed earningsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 43.0x5y range 0.0x – 43.0x

Currently above its 20-quarter median.

P/S · 0.3x5y range 0.0x – 0.5x

Currently below its 20-quarter median.

P/B · 0.9x5y range 0.0x – 8.1x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 70.9% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Revenue Decline

Red Flag

Revenue declined in 5 of the last 7 quarters — persistent contraction signals a fundamental problem.

Price & Volume

Market Cap $747.13M

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.82B
Q. Revenue: $705.75M
TTM EBITDA: $53.15M
TTM Op. Income: $37.26M
Q. Op. Income: $-6.17M
TTM Net Income: $17.38M
Q. Net Income: $-2.21M
EPS: $-0.7
Shares Out.: $6.41M

$2.82B in TTM revenue declined 10.1% YoY, reaching $705.75M last quarter. TTM EBITDA of $53.15M and TTM operating income of $37.26M show growth is flowing through to the bottom line. TTM net income of $17.38M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 4 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: -0.3%
Op. Margin: -0.9%
Net Margin: -0.3%

Op. margin of -0.9% is down 1.9% YoY — costs are rising relative to revenue. Net margin at -0.3% Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 43.0x
P/S Ratio: 0.3x
P/B Ratio: 0.9x

At 43.0x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.3x and P/B of 0.9x provide additional context. P/E sits above typical market levels while revenue growth is below 5%. Across the last 8 quarters, P/E has risen for 5 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.86B
Cash: $249.09M
Long-Term Debt: $902.49M
Book Value: $818.67M
D/E Ratio: 1.1
Debt/EBITDA: N/A

With $2.86B in assets and $902.49M in long-term debt, D/E is 1.1and book value is $818.67M — moderate leverage. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-24.03M
TTM Free Cash Flow: $197.78M
FCF Margin: 7.0%
FCF / Net Income: 11.4

TTM FCF of $197.78M on $-24.03M in operating cash flow. The FCF / Net Income ratio of 11.4x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.