Hovnanian Enterprises
Hovnanian Enterprises' revenue fell 0.9% to $3.0 billion in fiscal 2025. Its net margin was 2.1%, down from 8.1% a year earlier. Free cash flow was $166 million, up 2774.6%. It paid out $41 million in dividends and buybacks, 25% of free cash flow. The diluted share count fell 1.6%.
Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What Hovnanian Enterprises does
Hovnanian Enterprises builds and sells homes through its subsidiaries: single-family detached homes, attached townhomes and condominiums, urban infill homes and active lifestyle homes in planned communities. It builds for first-time buyers, move-up buyers, luxury buyers, active lifestyle buyers and empty nesters. It was founded in 1959 as a New Jersey homebuilder.
It has two operations. Homebuilding has three segments: Northeast, Southeast and West. Financial services provides mortgage loans and title services to its homebuilding customers. It was offering homes for sale in 140 communities in 27 markets in 13 states. Base prices ranged from $182,000 to $1,191,000, and the average sales price, including options, was $519,000 nationwide in fiscal 2025.
It has delivered more than 382,000 homes since its predecessor was incorporated, including 6,431 homes in fiscal 2025 together with its unconsolidated joint ventures. At the end of October 2025 it had 1,891 full-time associates, with 1,194 in homebuilding.
Its biggest risks, as it describes them
- A downturn in the homebuilding industry, or rising mortgage rates and costs for homebuyers.
- Finding suitable land and lots at acceptable prices, and having the cash to buy them.
- Relying on subcontractors to build its homes properly.
- Raw material and labor shortages and price swings that raise building costs.
- Competition from homebuilders with more sales and financial resources.
Income statement
From fiscal 2018 to 2025, earnings per share grew 39.6% a year and net income 46.1% a year, as new shares raised the share count by 13% and diluted each share's earnings.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | — | — | — | — | — |
| Debt incl. finance leases | 1,248 | 1,146 | 1,052 | 896 | 901 |
| Net debt (negative means net cash) | — | — | — | — | — |
| Net debt to EBITDA | — | — | — | — | — |
| Debt to equity | 7.1x | 3.0x | 1.8x | 1.1x | 1.1x |
| Interest coverage | 2.2x | 3.4x | 2.9x | 3.6x | 2.9x |
| Current ratio | — | — | — | — | — |
| Quick ratio | — | — | — | — | — |
Cash flow
Projections
Project Hovnanian Enterprises' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
No officer, director or 10% owner of Hovnanian Enterprises reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | — | — | — |
| Rule of 40 | 9.4% | 9.2% | 4.7% |
| Altman Z'' | — | — | — |
| Accruals ratio | −9.1% | 8.6% | −4.8% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Pass | Fail |
| Cash from operations exceeds net income | Pass | Fail | Pass |
| Debt fell relative to assets | Pass | Pass | Pass |
| Current ratio rose | — | — | — |
| Share count didn't rise | Pass | Fail | Pass |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Fail | Pass | Fail |
| F-score | — | — | — |
Compare
Put Hovnanian Enterprises side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Hovnanian Enterprises | FY25 | −0.9% | — | 5.6% | — | — | — | |
| Installed Building Products | FY25 | 1.0% | 13.0% | 10.1% | 22.6% | 1.3x | 7 | Compare |
| Champion Homes | FY26 | 7.3% | 9.4% | 10.1% | 20.8% | −2.0x | 6 | Compare |
| Cavco Industries | FY26 | 11.4% | 10.2% | 10.3% | — | — | — | Compare |
| Century Communities | FY25 | −6.4% | — | 3.0% | — | — | — | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 2,752 | 2,452 | 1,991 | 2,017 | 2,344 | 2,783 | 2,922 | 2,756 | 3,005 | 2,979 |
| Revenue growth | 28.1% | −10.9% | −18.8% | 1.3% | 16.2% | 18.7% | 5.0% | −5.7% | 9.0% | −0.9% |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Net income | −3 | −332 | 4 | −42 | 51 | 608 | 226 | 206 | 242 | 64 |
| Diluted EPS (US$) | −0.50 | −56.23 | 0.72 | −7.06 | 7.03 | 85.86 | 29.00 | 26.88 | 31.79 | 7.43 |
| Diluted shares (millions) | 6 | 6 | 6 | 6 | 7 | 6 | 7 | 7 | 7 | 7 |
| Cash flow | ||||||||||
| Cash from operations | 387 | 302 | −67 | −249 | 293 | 210 | 90 | 435 | 24 | 188 |
| Capital expenditure | 8 | 6 | 5 | 4 | 3 | 6 | 13 | 19 | 18 | 22 |
| Free cash flow | 379 | 295 | −72 | −253 | 289 | 204 | 77 | 416 | 6 | 166 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | 11 | 11 | 11 | 11 |
| Share buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 12 | 5 | 26 | 30 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-based compensation | 3 | 1 | 4 | 1 | 3 | 8 | 10 | 14 | 25 | 17 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 347 | 469 | — | — | — | — | — | — | — | — |
| Debt incl. finance leases | 1,606 | 1,610 | 1,439 | 1,480 | 1,431 | 1,248 | 1,146 | 1,052 | 896 | 901 |
| Total assets | 2,355 | 1,901 | 1,662 | 1,881 | 1,827 | 2,320 | 2,562 | 2,493 | 2,606 | 2,634 |
| Total liabilities | 2,484 | 2,361 | 2,116 | 2,371 | 2,263 | 2,145 | 2,179 | 1,911 | 1,805 | 1,803 |
| Shareholders' equity | −128 | −460 | −454 | −490 | −437 | 175 | 383 | 582 | 800 | 831 |
| Margins and ratios | ||||||||||
| Gross margin | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Net margin | −0.1% | −13.6% | 0.2% | −2.1% | 2.2% | 21.8% | 7.7% | 7.5% | 8.1% | 2.1% |
| Free cash flow margin | 13.8% | 12.0% | −3.6% | −12.6% | 12.3% | 7.3% | 2.6% | 15.1% | 0.2% | 5.6% |
| Rule of 40 (growth + FCF margin) | 41.9% | 1.1% | −22.4% | −11.3% | 28.6% | 26.1% | 7.6% | 9.4% | 9.2% | 4.7% |
| Return on capital | 7.1% | 12.2% | — | — | — | — | — | — | — | — |
| Return on equity | — | — | — | — | — | — | 80.8% | 42.7% | 35.0% | 7.8% |
| Return on assets | −0.1% | −15.6% | 0.2% | −2.4% | 2.8% | 29.3% | 9.2% | 8.2% | 9.5% | 2.4% |
| Net debt to EBITDA | 6.7x | 7.9x | — | — | — | — | — | — | — | — |