HOVNANIAN ENTERPRISES INC · Operative Builders

HOV

Low riskNext report: Around Dec 3 (est.)

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The short version

A profitable company with shrinking sales. Institutions are adding.

Going well

Profitable
Brings in more cash than it spends

Watch out for

Sales down 12% in the latest quarter vs a year ago

Money moves

No insider buying or selling in the last 30 days
Institutions added 3.9% to their holdings in the quarter ending June 2026 (105 bought, 56 sold)

Facts from SEC filings, not a recommendation.

What the price means

Price as of Oct 26

$99.08-2.3% that day

Company value: $635M; Share price times all shares
Price vs profit (P/E): 104.3x; You pay about $104 for each $1 of yearly profit
Price vs sales: 0.23x; Company value is 0.23 times a year of sales
Debt vs value: 142%; Owes more than the whole company is worth

From HOV's last IEX trade and its SEC filings (profits and sales over the last four quarters). A starting point for research, not a verdict.

The business over time

Last 12 quarters, from SEC filings

Sales, Jul '26

$705.7M-12% vs a year earlier

Oct '23Tap a barJul '26

Last 12 months: $2.8B, down 10% from the 12 months before. Over 5 years, sales grew about 4.9% a year.

What the price assumes

Your guesses, our math

Move the sliders to your own view of HOV. Starting points are the company's recent numbers.

Sales growth-10% a yearRecently: -10% a yearProfit margin1%Last 12 months: 0.6%P/E at the end40xToday: 104.3x. Many steady companies trade at 12x to 25xShare count change+1% a yearBelow zero means buybacks; above zero means new shares (dilution)

Sales in 5 years$1.7B

Profit in 5 years$17M

Price these guesses point to$98.95-0.1% vs $99.08 todayAbout -0.0% a year, before dividends

What today's price needs: with a 1% margin and a 40x P/E, sales could shrink about 10.0% a year for 5 years and still match today's price.

Simple math on your guesses, not a forecast or a price target. Real results depend on many things these sliders leave out.

Price

Price chart by TradingView.

Business quality

The checklist Warren Buffett-style investors use. Annual numbers for 2025.

1/6Weak

MissReturn on equity 15%+Earns a lot on the money owners have in the business.7.8%
MissDebt under half of equityNot relying on borrowed money.1.08x equity
MissNet margin 10%+Keeps at least 10 cents of profit from each dollar of sales.2.1%
MissProfitable every yearSteady profits, not one good year.7 of 10 years
PassFree cash flow positiveBrings in more cash than it spends to run and grow.$166.2M
MissShare count not growingNot diluting owners. Falling means buybacks.+2.4% in 3 years

Revenue: $3.0B; -0.9% vs prior year
5-year growth: +4.9%/yr; revenue, per year
Total debt: $901.3M; 1.08x equity
Free cash flow: $166.2M; 5.6% of revenue

From annual reports filed with the SEC. Not in this company's SEC data, so not scored: gross margin 40%+. A checklist is a starting point for research, not a verdict.