Hovnanian Enterprises Stock Return On Equity

HOV Stock

USD 175.38 3.43 1.99%

Hovnanian Enterprises fundamentals help investors to digest information that contributes to Hovnanian Enterprises' financial success or failures. It also enables traders to predict the movement of Hovnanian Stock. The fundamental analysis module provides a way to measure Hovnanian Enterprises' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Hovnanian Enterprises stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.32	0.33

Return On Equity is likely to climb to 0.33 in 2024.

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Hovnanian Enterprises Company Return On Equity Analysis

Hovnanian Enterprises' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

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Current Hovnanian Enterprises Return On Equity

0.41

Most of Hovnanian Enterprises' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Hovnanian Enterprises is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Hovnanian Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Hovnanian Enterprises is extremely important. It helps to project a fair market value of Hovnanian Stock properly, considering its historical fundamentals such as Return On Equity. Since Hovnanian Enterprises' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Hovnanian Enterprises' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Hovnanian Enterprises' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Total Liab	Accounts Payable	Net Receivables	Total Current Assets	Short Term Debt	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Current Deferred Revenue	Short Term Investments	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.36	0.44	0.01	0.78	0.83	0.24	0.94	-0.07	-0.02	0.06	-0.81	0.05	0.75	-0.81	0.57	0.16	0.75	0.52	-0.01	0.19	0.03	0.54	-0.11	-0.14
Total Stockholder Equity	0.36		-0.56	0.92	-0.28	0.31	-0.12	0.29	-0.36	-0.6	0.2	-0.06	0.16	0.61	-0.24	0.89	0.73	0.45	0.09	-0.31	-0.05	-0.01	0.87	-0.42	-0.59
Net Debt	0.44	-0.56		-0.78	0.87	0.29	0.51	0.55	0.39	0.6	-0.25	-0.61	-0.15	-0.01	-0.41	-0.29	-0.59	0.15	0.4	0.17	0.26	-0.08	-0.47	0.17	0.24
Retained Earnings	0.01	0.92	-0.78		-0.61	0.01	-0.13	-0.03	-0.27	-0.6	0.13	0.34	0.2	0.33	0.14	0.68	0.67	0.14	-0.08	-0.39	-0.08	0.05	0.74	-0.3	-0.5
Total Liab	0.78	-0.28	0.87	-0.61		0.64	0.33	0.78	0.16	0.38	-0.08	-0.84	-0.07	0.37	-0.71	0.02	-0.31	0.49	0.49	0.2	0.23	0.01	-0.06	0.11	0.18
Accounts Payable	0.83	0.31	0.29	0.01	0.64		0.1	0.75	-0.39	-0.17	-0.03	-0.67	-0.22	0.78	-0.82	0.39	0.28	0.63	0.51	0.06	0.12	-0.09	0.41	-0.21	-0.07
Net Receivables	0.24	-0.12	0.51	-0.13	0.33	0.1		0.47	0.68	0.57	-0.56	0.02	0.24	-0.18	0.15	-0.18	-0.49	-0.23	0.24	-0.29	0.54	0.3	-0.26	0.42	0.27
Total Current Assets	0.94	0.29	0.55	-0.03	0.78	0.75	0.47		0.13	0.16	-0.08	-0.74	0.21	0.56	-0.7	0.5	0.01	0.66	0.53	-0.01	0.31	0.12	0.4	0.01	-0.15
Short Term Debt	-0.07	-0.36	0.39	-0.27	0.16	-0.39	0.68	0.13		0.7	-0.21	0.16	0.46	-0.49	0.43	-0.29	-0.64	-0.39	0.01	-0.27	0.62	0.47	-0.35	0.57	0.35
Common Stock	-0.02	-0.6	0.6	-0.6	0.38	-0.17	0.57	0.16	0.7		-0.42	-0.08	0.28	-0.54	0.28	-0.45	-0.87	-0.3	-0.01	0.09	0.33	0.45	-0.53	0.45	0.43
Long Term Debt	0.06	0.2	-0.25	0.13	-0.08	-0.03	-0.56	-0.08	-0.21	-0.42		-0.18	0.06	0.36	-0.21	0.4	0.54	0.22	-0.4	-0.25	-0.33	-0.01	0.34	-0.16	-0.12
Treasury Stock	-0.81	-0.06	-0.61	0.34	-0.84	-0.67	0.02	-0.74	0.16	-0.08	-0.18		0.08	-0.58	0.9	-0.4	-0.03	-0.69	-0.36	-0.27	-0.05	0.12	-0.21	0.18	0.15
Property Plant Equipment	0.05	0.16	-0.15	0.2	-0.07	-0.22	0.24	0.21	0.46	0.28	0.06	0.08		-0.3	0.22	0.23	-0.09	0.04	-0.18	0.02	0.19	0.7	0.23	0.37	-0.09
Current Deferred Revenue	0.75	0.61	-0.01	0.33	0.37	0.78	-0.18	0.56	-0.49	-0.54	0.36	-0.58	-0.3		-0.77	0.67	0.66	0.66	0.4	-0.26	-0.07	-0.16	0.66	-0.4	-0.29
Short Term Investments	-0.81	-0.24	-0.41	0.14	-0.71	-0.82	0.15	-0.7	0.43	0.28	-0.21	0.9	0.22	-0.77		-0.48	-0.34	-0.79	-0.46	-0.26	0.01	0.31	-0.36	0.38	0.31
Net Tangible Assets	0.57	0.89	-0.29	0.68	0.02	0.39	-0.18	0.5	-0.29	-0.45	0.4	-0.4	0.23	0.67	-0.48		0.64	0.69	0.06	-0.17	-0.07	-0.02	0.88	-0.45	-0.66
Long Term Debt Total	0.16	0.73	-0.59	0.67	-0.31	0.28	-0.49	0.01	-0.64	-0.87	0.54	-0.03	-0.09	0.66	-0.34	0.64		0.44	0.03	-0.21	-0.28	-0.23	0.63	-0.57	-0.56
Capital Surpluse	0.75	0.45	0.15	0.14	0.49	0.63	-0.23	0.66	-0.39	-0.3	0.22	-0.69	0.04	0.66	-0.79	0.69	0.44		0.34	0.34	-0.06	-0.24	0.63	-0.53	-0.63
Deferred Long Term Liab	0.52	0.09	0.4	-0.08	0.49	0.51	0.24	0.53	0.01	-0.01	-0.4	-0.36	-0.18	0.4	-0.46	0.06	0.03	0.34		-0.01	0.33	-0.15	0.05	-0.15	-0.08
Long Term Investments	-0.01	-0.31	0.17	-0.39	0.2	0.06	-0.29	-0.01	-0.27	0.09	-0.25	-0.27	0.02	-0.26	-0.26	-0.17	-0.21	0.34	-0.01		0.01	-0.3	-0.17	-0.12	-0.19
Short Long Term Debt	0.19	-0.05	0.26	-0.08	0.23	0.12	0.54	0.31	0.62	0.33	-0.33	-0.05	0.19	-0.07	0.01	-0.07	-0.28	-0.06	0.33	0.01		0.16	-0.13	0.22	0.13
Cash And Equivalents	0.03	-0.01	-0.08	0.05	0.01	-0.09	0.3	0.12	0.47	0.45	-0.01	0.12	0.7	-0.16	0.31	-0.02	-0.23	-0.24	-0.15	-0.3	0.16		0.1	0.59	0.29
Net Invested Capital	0.54	0.87	-0.47	0.74	-0.06	0.41	-0.26	0.4	-0.35	-0.53	0.34	-0.21	0.23	0.66	-0.36	0.88	0.63	0.63	0.05	-0.17	-0.13	0.1		-0.3	-0.46
Net Working Capital	-0.11	-0.42	0.17	-0.3	0.11	-0.21	0.42	0.01	0.57	0.45	-0.16	0.18	0.37	-0.4	0.38	-0.45	-0.57	-0.53	-0.15	-0.12	0.22	0.59	-0.3		0.7
Capital Stock	-0.14	-0.59	0.24	-0.5	0.18	-0.07	0.27	-0.15	0.35	0.43	-0.12	0.15	-0.09	-0.29	0.31	-0.66	-0.56	-0.63	-0.08	-0.19	0.13	0.29	-0.46	0.7

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

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Return On Equity Over Time

Hovnanian Total Stockholder Equity

Total Stockholder Equity

549.74 Million

At this time, Hovnanian Enterprises' Total Stockholder Equity is fairly stable compared to the past year.

Based on the latest financial disclosure, Hovnanian Enterprises has a Return On Equity of 0.4131. This is 88.52% lower than that of the Household Durables sector and 92.66% lower than that of the Consumer Discretionary industry. The return on equity for all United States stocks is notably lower than that of the firm.

Hovnanian Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Hovnanian Enterprises' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Hovnanian Enterprises could also be used in its relative valuation, which is a method of valuing Hovnanian Enterprises by comparing valuation metrics of similar companies.

Hovnanian Enterprises is currently under evaluation in return on equity category among its peers.

Hovnanian Enterprises ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Hovnanian Enterprises' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Hovnanian Enterprises' managers, analysts, and investors.

Environmental

Governance

Social

Hovnanian Fundamentals

	Return On Equity	0.41
	Return On Asset	0.0702
	Profit Margin	0.08 %
	Operating Margin	0.07 %
	Current Valuation	2.07 B
	Shares Outstanding	5.33 M
	Shares Owned By Insiders	6.20 %
	Shares Owned By Institutions	68.83 %
	Number Of Shares Shorted	242.29 K
	Price To Earning	1.51 X
	Price To Book	1.83 X
	Price To Sales	0.36 X
	Revenue	2.76 B
	Gross Profit	581.67 M
	EBITDA	283.75 M
	Net Income	205.89 M
	Cash And Equivalents	326.2 M
	Cash Per Share	35.20 X
	Total Debt	1.14 B
	Debt To Equity	4.21 %
	Current Ratio	4.87 X
	Book Value Per Share	93.90 X
	Cash Flow From Operations	214.69 M
	Short Ratio	3.78 X
	Earnings Per Share	32.05 X
	Price To Earnings To Growth	1.22 X
	Target Price	27.0
	Number Of Employees	1.72 K
	Beta	2.61
	Market Capitalization	1.04 B
	Total Asset	2.49 B
	Retained Earnings	(157.2 M)
	Working Capital	1.32 B
	Current Asset	2.06 B
	Current Liabilities	671.09 M
	Net Asset	2.49 B

About Hovnanian Enterprises Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Hovnanian Enterprises's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hovnanian Enterprises using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Hovnanian Enterprises based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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