Hovnanian Story

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HOV -- USA Stock  

USD 45.43  1.56  3.56%

Hovnanian Enterprises PPandE Turnover is fairly stable at the moment as compared to the past year. Hovnanian Enterprises reported PPandE Turnover of 89.84 in 2019. Operating Margin is likely to climb to 3.07 in 2020, whereas Revenue Per Employee is likely to drop slightly above 953.9 K in 2020. As some conservative investors are getting more into consumer cyclical space, Hovnanian Enterprises could be a your radar. We will analyze why it could be a much better year for Hovnanian Enterprises shareholders. In this post, I will also go over some essential variables affecting Hovnanian Enterprises' products, and show how it may impact Hovnanian Enterprises outlook for active traders this year.
Published over a month ago
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Is Hovnanian Enterprises overvalued?
On a scale of 0 to 100, Hovnanian Enterprises holds a performance score of 6. The company retains a Market Volatility (i.e. Beta) of 1.4492, which attests to a somewhat significant risk relative to the market. Let's try to break down what Hovnanian's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Hovnanian Enterprises will likely underperform. Although it is vital to follow Hovnanian Enterprises current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Hovnanian Enterprises technical indicators, you can presently evaluate if the expected return of 0.39% will be sustainable into the future. Please utilizes Hovnanian Enterprises total risk alpha, downside variance, as well as the relationship between the Downside Variance and daily balance of power to make a quick decision on whether Hovnanian Enterprises current trending patterns will revert.

How important is Hovnanian Enterprises's Liquidity

Hovnanian Enterprises financial leverage refers to using borrowed capital as a funding source to finance Hovnanian Enterprises ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hovnanian Enterprises financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hovnanian Enterprises's total debt and its cash.

How Hovnanian utilizes its cash?

To perform a cash flow analysis of Hovnanian Enterprises, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hovnanian Enterprises is receiving and how much cash it distributes out in a given period. The Hovnanian Enterprises cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Hovnanian Enterprises Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Hovnanian Enterprises reported Net Cash Flow from Operations of 336.75 Million in 2020

What did Hovnanian Enterprises file with SEC?

The SEC filings are financial statements or other formal documents of Hovnanian Enterprises that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Hovnanian shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Material Modifications to Rights of Security Holders. Entry into a Material Definitive Agreement
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Hovnanian shareholders may or may not be submitted as SEC does not always require it.

Breaking down Hovnanian Enterprises Indicators

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hovnanian Enterprises has an asset utilization ratio of 99.6 percent. This indicates that the company is making $1.0 for each dollar of assets. An increasing asset utilization means that Hovnanian Enterprises is more efficient with each dollar of assets it utilizes for everyday operations.

Chances of Hovnanian Enterprises sophisticated investors to go out of control

Total risk alpha is down to 0.13. It may cause a possible volatility fall. Hovnanian Enterprises shows above-average downside volatility for the selected time horizon. We advise investors to inspect Hovnanian Enterprises further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Hovnanian Enterprises future alpha.

Our Conclusion on Hovnanian Enterprises

While some other entities within the residential construction industry are still a little expensive, even after the recent corrections, Hovnanian Enterprises may offer a potential longer-term growth to sophisticated investors. To conclude, as of the 9th of December 2020, our analysis shows that Hovnanian Enterprises responds to the market. The venture is overvalued and projects close to average probability of distress for the next 2 years. Our primary 30 days buy-sell recommendation on the venture is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Hovnanian Enterprises. Please refer to our Terms of Use for any information regarding our disclosure principles.

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