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Hovnanian Enterprises

DB:HO3A
Snowflake Description

Reasonable growth potential and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HO3A
DB
$134M
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. The last earnings update was 70 days ago. More info.


Add to Portfolio Compare Print
  • Hovnanian Enterprises has significant price volatility in the past 3 months.
HO3A Share Price and Events
7 Day Returns
-9.6%
DB:HO3A
-1.1%
DE Consumer Durables
0.1%
DE Market
1 Year Returns
-25.8%
DB:HO3A
2.9%
DE Consumer Durables
8.8%
DE Market
HO3A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hovnanian Enterprises (HO3A) -9.6% -7.2% 327.9% -25.8% -49.8% -74.7%
DE Consumer Durables -1.1% 3.5% 4.1% 2.9% -5.9% 11.6%
DE Market 0.1% 5.9% 15% 8.8% 14.5% 21%
1 Year Return vs Industry and Market
  • HO3A underperformed the Consumer Durables industry which returned 2.9% over the past year.
  • HO3A underperformed the Market in Germany which returned 8.8% over the past year.
Price Volatility
HO3A
Industry
5yr Volatility vs Market
Related Companies

HO3A Value

 Is Hovnanian Enterprises undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hovnanian Enterprises to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hovnanian Enterprises.

DB:HO3A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-07-31) in USD $ 0.44
Payout Ratio Company Filings (2019-07-31) 0%
Discount Rate (Cost of Equity) See below 6.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HO3A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.815 (1 + (1- 21%) (1261.83%))
1.039
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.039 * 5.96%)
6.42%

Discounted Cash Flow Calculation for DB:HO3A using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Hovnanian Enterprises is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:HO3A Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.44 / (6.42% - 0.23%)
$5.71
DB:HO3A Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HO3A represents 0.89682x of NYSE:HOV
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89682x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 7.10 x 0.89682
€6.37
Value per share (EUR) From above. €6.37
Current discount Discount to share price of €20.60
= -1 x (€20.60 - €6.37) / €6.37
-223.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hovnanian Enterprises is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hovnanian Enterprises's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hovnanian Enterprises's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HO3A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-07-31) in USD $0.96
NYSE:HOV Share Price ** NYSE (2019-11-14) in USD $22.97
Germany Consumer Durables Industry PE Ratio Median Figure of 8 Publicly-Listed Consumer Durables Companies 17.05x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 19.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hovnanian Enterprises.

DB:HO3A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HOV Share Price ÷ EPS (both in USD)

= 22.97 ÷ 0.96

23.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hovnanian Enterprises is overvalued based on earnings compared to the DE Consumer Durables industry average.
  • Hovnanian Enterprises is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Hovnanian Enterprises's expected growth come at a high price?
Raw Data
DB:HO3A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
104.6%per year
Germany Consumer Durables Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Durables Companies 0.97x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:HO3A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.99x ÷ 104.6%

0.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hovnanian Enterprises is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hovnanian Enterprises's assets?
Raw Data
DB:HO3A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-07-31) in USD $-105.79
NYSE:HOV Share Price * NYSE (2019-11-14) in USD $22.97
Germany Consumer Durables Industry PB Ratio Median Figure of 12 Publicly-Listed Consumer Durables Companies 1.69x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.83x
DB:HO3A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HOV Share Price ÷ Book Value per Share (both in USD)

= 22.97 ÷ -105.79

-0.22x

* Primary Listing of Hovnanian Enterprises.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hovnanian Enterprises has negative assets, we can't compare the value of its assets to the DE Consumer Durables industry average.
X
Value checks
We assess Hovnanian Enterprises's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Hovnanian Enterprises has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HO3A Future Performance

 How is Hovnanian Enterprises expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
104.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hovnanian Enterprises expected to grow at an attractive rate?
  • Hovnanian Enterprises's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Hovnanian Enterprises's earnings growth is expected to exceed the Germany market average.
  • Hovnanian Enterprises's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HO3A Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HO3A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 104.6%
DB:HO3A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 9.8%
Germany Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 15%
Germany Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HO3A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HO3A Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-10-31 2,168 -34 12 1
2019-11-14
2019-10-31 1,972 -213 -15 1
DB:HO3A Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-07-31 1,918 -228 6
2019-04-30 1,893 -196 12
2019-01-31 1,955 -101 18
2018-10-31 1,991 -67 4
2018-07-31 2,098 60 -30
2018-04-30 2,233 114 -366
2018-01-31 2,317 188 -363
2017-10-31 2,452 302 -332
2017-07-31 2,535 339 -322
2017-04-30 2,660 536 15
2017-01-31 2,729 479 13
2016-10-31 2,752 387 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hovnanian Enterprises's earnings are expected to grow significantly at over 20% yearly.
  • Hovnanian Enterprises's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HO3A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Hovnanian Enterprises Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HO3A Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-10-31 2.06 2.06 2.06 1.00
2019-11-14
2019-10-31 -2.54 -2.54 -2.54 1.00
DB:HO3A Past Financials Data
Date (Data in USD Millions) EPS *
2019-07-31 0.96
2019-04-30 2.06
2019-01-31 2.98
2018-10-31 0.73
2018-07-31 -5.03
2018-04-30 -61.81
2018-01-31 -61.37
2017-10-31 -56.23
2017-07-31 -54.48
2017-04-30 2.54
2017-01-31 2.24
2016-10-31 -0.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hovnanian Enterprises will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hovnanian Enterprises's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hovnanian Enterprises has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HO3A Past Performance

  How has Hovnanian Enterprises performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hovnanian Enterprises's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hovnanian Enterprises's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Hovnanian Enterprises has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Hovnanian Enterprises has become profitable in the last year making it difficult to compare the DE Consumer Durables industry average.
Earnings and Revenue History
Hovnanian Enterprises's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hovnanian Enterprises Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HO3A Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-07-31 1,918.14 5.71 230.11
2019-04-30 1,892.81 12.28 225.53
2019-01-31 1,954.66 17.72 226.87
2018-10-31 1,991.23 4.36 228.83
2018-07-31 2,098.11 -29.82 238.36
2018-04-30 2,233.43 -366.00 245.64
2018-01-31 2,316.82 -362.86 245.49
2017-10-31 2,451.67 -332.19 243.19
2017-07-31 2,535.05 -321.75 236.53
2017-04-30 2,659.86 14.99 241.89
2017-01-31 2,728.65 13.21 249.32
2016-10-31 2,752.25 -2.82 253.08
2016-07-31 2,640.38 0.41 248.74
2016-04-30 2,464.15 -6.80 250.04
2016-01-31 2,278.37 -17.90 250.18
2015-10-31 2,148.48 -16.10 250.91
2015-07-31 2,153.67 273.74 266.69
2015-04-30 2,164.07 298.53 265.77
2015-01-31 2,145.05 310.18 259.11
2014-10-31 2,063.38 300.04 254.91
2014-07-31 1,956.67 17.44 252.73
2014-04-30 1,884.02 8.80 242.17
2014-01-31 1,857.09 18.02 231.25
2013-10-31 1,851.25 31.24 220.17
2013-07-31 1,746.61 -85.88 205.94
2013-04-30 1,655.27 -59.72 197.69
2013-01-31 1,573.97 -59.24 193.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Hovnanian Enterprises has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Hovnanian Enterprises used its assets more efficiently than the DE Consumer Durables industry average last year based on Return on Assets.
  • Hovnanian Enterprises's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hovnanian Enterprises's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hovnanian Enterprises has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HO3A Health

 How is Hovnanian Enterprises's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hovnanian Enterprises's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hovnanian Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hovnanian Enterprises's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hovnanian Enterprises's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Hovnanian Enterprises has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hovnanian Enterprises Company Filings, last reported 3 months ago.

DB:HO3A Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-07-31 -493.07 1,693.29 83.63
2019-04-30 -484.48 1,691.01 124.00
2019-01-31 -470.36 1,636.97 113.31
2018-10-31 -453.50 1,570.39 187.87
2018-07-31 -500.63 1,651.99 216.71
2018-04-30 -499.98 1,668.02 248.82
2018-01-31 -491.19 1,661.77 278.16
2017-10-31 -460.37 1,757.20 463.70
2017-07-31 -471.16 1,734.71 278.49
2017-04-30 -133.90 1,701.42 275.01
2017-01-31 -128.28 1,707.20 195.83
2016-10-31 -128.51 1,754.19 339.77
2016-07-31 -151.94 1,892.33 181.53
2016-04-30 -152.32 2,014.11 120.66
2016-01-31 -143.14 2,034.94 147.12
2015-10-31 -128.08 2,203.88 245.40
2015-07-31 -151.51 2,176.02 207.30
2015-04-30 -146.33 2,166.26 256.87
2015-01-31 -129.98 2,123.90 269.28
2014-10-31 -117.80 1,887.23 255.12
2014-07-31 -443.12 1,852.39 176.64
2014-04-30 -462.51 1,834.36 238.12
2014-01-31 -456.12 1,827.33 282.48
2013-10-31 -432.80 1,730.01 319.14
2013-07-31 -467.20 1,682.99 221.50
2013-04-30 -478.52 1,673.85 236.42
2013-01-31 -481.23 1,672.14 232.79
  • Hovnanian Enterprises has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Hovnanian Enterprises's debt level has increased considering it has negative shareholder equity.
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 0.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Hovnanian Enterprises's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hovnanian Enterprises has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HO3A Dividends

 What is Hovnanian Enterprises's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Hovnanian Enterprises dividends. Estimated to be 1.92% next year.
If you bought €2,000 of Hovnanian Enterprises shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Hovnanian Enterprises's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Hovnanian Enterprises's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HO3A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Germany Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HO3A Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-10-31 0.44 1.00
2019-11-14
2019-10-31 0.44 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Hovnanian Enterprises has not reported any payouts.
  • Unable to verify if Hovnanian Enterprises's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Hovnanian Enterprises's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Hovnanian Enterprises has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Hovnanian Enterprises's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hovnanian Enterprises afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hovnanian Enterprises has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HO3A Management

 What is the CEO of Hovnanian Enterprises's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ara Hovnanian
COMPENSATION $7,482,639
AGE 62
TENURE AS CEO 22.3 years
CEO Bio

Mr. Ara K. Hovnanian serves as the Chairman, Chief Executive Officer and President of Hovnanian Enterprises, Inc. at K. Hovnanian Cambridge Homes LLC. Mr. Hovnanian has been the Chief Executive Officer of Hovnanian Enterprises Inc. since July 1997 and President since April 1988. Mr. Hovnanian served as an Executive Vice President of Hovnanian Enterprises Inc. from March 1983. He has been Chairman of Hovnanian Enterprises Inc. since November 2009. He served as Vice Chairman of Hovnanian Enterprises Inc. from 1998 to November 2009. Mr. Hovnanian has been a Director of Washington Homes, Inc. since December 1981 and Hovnanian Enterprises Inc. since December 1981. He Joined Hovnanian Enterprises in 1979. Mr. Hovnanian serves as a member of the Advisory Council of PNC Bank and spends a significant amount of time working with several charitable organizations. He served on New Jersey's Council on Affordable Housing Governors in 1985 and 1990. He was appointed as a member of the Governor's Economic Master Plan Commission in 1994. Mr. Hovnanian completed his joint undergraduate and graduate work at The Wharton School in Philadelphia. He graduated summa cum laude with degrees in accounting, finance and real estate.

CEO Compensation
  • Ara's compensation has increased in line with Hovnanian Enterprises recently becoming profitable.
  • Ara's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Hovnanian Enterprises management team in years:

14.9
Average Tenure
59
Average Age
  • The average tenure for the Hovnanian Enterprises management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ara Hovnanian

TITLE
President
COMPENSATION
$7M
AGE
62
TENURE
22.3 yrs

J. Sorsby

TITLE
Executive VP
COMPENSATION
$3M
AGE
64
TENURE
23.8 yrs

Lucian Smith

TITLE
Chief Operating Officer
COMPENSATION
$3M
AGE
59
TENURE
3 yrs

Brad O’Connor

TITLE
VP, Chief Accounting Officer & Corporate Controller
COMPENSATION
$809K
AGE
49
TENURE
8.5 yrs

Paul Marabella

TITLE
Chief Information Officer & VP

Jeff O'Keefe

TITLE
Vice President of Investor Relations
TENURE
15 yrs

Michael Discafani

TITLE
VP, Corporate Counsel & Secretary
TENURE
14.8 yrs

Dan Klinger

TITLE
President of K Hovnanian American Mortgage LLC
AGE
53

Joe Riggs

TITLE
Group President

Michael Kehoe

TITLE
President of Eastern Title Agency and Affiliated Title Agencies
Board of Directors Tenure

Average tenure and age of the Hovnanian Enterprises board of directors in years:

13.7
Average Tenure
67.5
Average Age
  • The average tenure for the Hovnanian Enterprises board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

J. Sorsby

TITLE
Executive VP
COMPENSATION
$3M
AGE
64
TENURE
22.8 yrs

Stephen Weinroth

TITLE
Independent Director
COMPENSATION
$299K
AGE
80
TENURE
37.8 yrs

Ara Hovnanian

TITLE
President
COMPENSATION
$7M
AGE
62
TENURE
10 yrs

Ed Kangas

TITLE
Independent Director
COMPENSATION
$354K
AGE
75
TENURE
17.2 yrs

Vincent Pagano

TITLE
Independent Director
COMPENSATION
$300K
AGE
69
TENURE
6.7 yrs

Joseph Marengi

TITLE
Independent Director
COMPENSATION
$361K
AGE
65
TENURE
13.7 yrs

Robert Coutts

TITLE
Independent Director
COMPENSATION
$304K
AGE
69
TENURE
13.7 yrs

Robin Sellers

TITLE
Independent Director
COMPENSATION
$217K
AGE
66
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Hovnanian Enterprises's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hovnanian Enterprises has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HO3A News

Simply Wall St News

HO3A Company Info

Description

Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It constructs single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes. The company builds and markets homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters in 123 communities in 25 markets. It also provides financial services comprising originating mortgages from home-buyers and selling such mortgages in the secondary market, as well as offers title insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.

Details
Name: Hovnanian Enterprises, Inc.
HO3A
Exchange: DB
Founded: 1959
$121,861,123
6,125,991
Website: http://www.khov.com
Address: Hovnanian Enterprises, Inc.
90 Matawan Road,
Fifth Floor,
Matawan,
New Jersey, 07747,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HOV Class A Common Stock New York Stock Exchange US USD 14. Sep 1992
DB HO3A Class A Common Stock Deutsche Boerse AG DE EUR 14. Sep 1992
OTCPK HOVV.B Class B Common Stock Pink Sheets LLC US USD 17. Jun 2003
Number of employees
Current staff
Staff numbers
1,851
Hovnanian Enterprises employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 20:30
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/09/05
Last earnings reported: 2019/07/31
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.