Hovnanian Enterprises's Days Sales Outstanding for the
three
months ended in Apr. 2026 was 5.98.
Hovnanian Enterprises's Days Inventory for the
three
months ended in Apr. 2026 was 270.28.
Hovnanian Enterprises's Days Payable for the
three
months ended in Apr. 2026 was 70.35.
Therefore, Hovnanian Enterprises's Cash Conversion Cycle (CCC) for the
three
months ended in Apr. 2026 was 205.91.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Hovnanian Enterprises Cash Conversion Cycle Related Terms
Hovnanian Enterprises Cash Conversion Cycle Historical Data
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The historical data trend for Hovnanian Enterprises's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HOVVB vs BZH, LEGH, LGIH: Cash Conversion Cycle Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hovnanian Enterprises Cash Conversion Cycle vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Hovnanian Enterprises's Cash Conversion Cycle for the fiscal year that ended in Oct. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hovnanian Enterprises (HOVVB) has a Cash Conversion Cycle of 205.91 as of Apr. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Hovnanian Enterprises and its competitors.
Is Hovnanian Enterprises' Cash Conversion Cycle too high?
Hovnanian Enterprises' current Cash Conversion Cycle is 205.91. The Homebuilding & Construction industry median Cash Conversion Cycle is 273.39. Hovnanian Enterprises' value of 205.91 is 24.7% below this industry median. Overall, Hovnanian Enterprises has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' Cash Conversion Cycle compare to BZH and LEGH?
Hovnanian Enterprises' Cash Conversion Cycle of 205.91 can be compared against companies in the Homebuilding & Construction industry. The industry median Cash Conversion Cycle is 273.39. Hovnanian Enterprises' value of 205.91 is 24.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Homebuilding & Construction company?
The median Cash Conversion Cycle among Homebuilding & Construction companies is 273.39, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hovnanian Enterprises's current Cash Conversion Cycle of 205.91 is 24.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median Cash Conversion Cycle is 273.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current Cash Conversion Cycle is 205.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hovnanian Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Hovnanian Enterprises (HOVVB) is currently considered Modestly Overvalued. The stock's GF Value™ is $93.15, compared to a current price of $110.00 — trading 18.1% above its estimated fair value. The current Cash Conversion Cycle is 205.91 and 24.7% below the Homebuilding & Construction industry median of 273.39. Hovnanian Enterprises' overall GF Score™ is 67/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current Cash Conversion Cycle is 205.91 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hovnanian Enterprises (HOVVB) Overvalued in 2026?
Based on GuruFocus' analysis, Hovnanian Enterprises stock appears to be overvalued.
The current stock price of $110.00 is trading 18.1% above its estimated GF Value™ of $93.15.
GuruFocus considers Hovnanian Enterprises to be Modestly Overvalued.
Key valuation signals for HOVVB:
Cash Conversion Cycle: 205.91
GF Value™: $93.15 vs. price of $110.00 (18.1% above fair value)
Industry Position: 24.7% below the Homebuilding & Construction median
No single metric tells the full story. See the HOVVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations. The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments: Northeast, which includes Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia; Southeast, which includes Florida, Georgia, and South Carolina; and West, which includes Arizona, California, and Texas. The firm generates maximum revenue from the West Segment.
67GF Score
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