Hovnanian Enterprises Stock Analysis, Valuation (NYSE:HOV)

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$1.8 $0.04 (2.17%) HOV stock closing price Jun 21, 2018 (Closing)

Watch the robo advisor video of Hovnanian Enterprises stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for HOV stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Hovnanian Enterprises, Inc. Stock Rating 1.6/5

Amigobulls HOV stock analysis relies on business fundamentals such as Hovnanian Enterprises revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Hovnanian Enterprises valuation forms a crucial part of our stock analysis. Hovnanian Enterprises stock rating is our opinion about the business fundamentals of the company.

Should you buy HOV stock?

  • Revenue growth has been tremendous with a compounded annual growth of 8 over the last 5 years.
  • HOV stock is trading at a favorable price to sales multiple of 0.1 as against the Construction sector average multiple of 0.9.

Should you sell HOV stock?

  • Hovnanian Enterprises had a poor average operating margin of 3.5 over the last 4 quarters.
  • Hovnanian Enterprises posted an average Net loss of -15.7% in the last twelve months.
  • The company does not have profits. Hence the PE ratio is meaningless for HOV stock.
  • Hovnanian Enterprises has a low ROIC (Return on Invested Capital) of 4.5.
  • Hovnanian Enterprises has a negative FCF (Free Cash Flow) margin of -11.1.

Comments on this video and Hovnanian Enterprises stock

Amigobulls Hovnanian Enterprises stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of HOV stock and helps investors in making good buy and sell decision.

Among the financials of the company, Hovnanian Enterprises revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of HOV technical analysis to check whether the fundamental story is reflected in the market sentiment.