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HOV (Hovnanian Enterprises) Piotroski F-Score : 6 (As of Mar. 16, 2025)


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What is Hovnanian Enterprises Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hovnanian Enterprises has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Hovnanian Enterprises's Piotroski F-Score or its related term are showing as below:

HOV' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of Hovnanian Enterprises was 7. The lowest was 1. And the median was 5.


Hovnanian Enterprises Piotroski F-Score Historical Data

The historical data trend for Hovnanian Enterprises's Piotroski F-Score 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.

* Premium members only.

Hovnanian Enterprises Piotroski F-Score Chart

Hovnanian Enterprises Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 7.00 5.00 6.00 6.00

Hovnanian Enterprises Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 6.00 7.00 6.00 6.00

Competitive Comparison of Hovnanian Enterprises's Piotroski F-Score

For the Residential Construction subindustry, Hovnanian Enterprises's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Hovnanian Enterprises's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jan25) TTM:Last Year (Jan24) TTM:
Net Income was 50.836 + 72.919 + 94.349 + 28.191 = $246 Mil.
Cash Flow from Operations was 89.103 + -92.283 + 115.824 + -55.879 = $57 Mil.
Revenue was 708.38 + 722.704 + 979.638 + 673.623 = $3,084 Mil.
Gross Profit was 143.075 + 137.595 + 196.249 + 106.5 = $583 Mil.
Average Total Assets from the begining of this year (Jan24)
to the end of this year (Jan25) was
(2340.378 + 2317.646 + 2540.505 + 2605.574 + 2533.275) / 5 = $2467.4756 Mil.
Total Assets at the begining of this year (Jan24) was $2,340 Mil.
Long-Term Debt & Capital Lease Obligation was $981 Mil.
Total Current Assets was $1,843 Mil.
Total Current Liabilities was $442 Mil.
Net Income was 34.146 + 55.764 + 97.265 + 23.904 = $211 Mil.

Revenue was 703.661 + 649.957 + 887.032 + 594.196 = $2,835 Mil.
Gross Profit was 131.325 + 136.042 + 212.996 + 113.312 = $594 Mil.
Average Total Assets from the begining of last year (Jan23)
to the end of last year (Jan24) was
(2435.185 + 2483.754 + 2393.917 + 2492.94 + 2340.378) / 5 = $2429.2348 Mil.
Total Assets at the begining of last year (Jan23) was $2,435 Mil.
Long-Term Debt & Capital Lease Obligation was $1,034 Mil.
Total Current Assets was $1,679 Mil.
Total Current Liabilities was $456 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Hovnanian Enterprises's current Net Income (TTM) was 246. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Hovnanian Enterprises's current Cash Flow from Operations (TTM) was 57. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jan24)
=246.295/2340.378
=0.10523727

ROA (Last Year)=Net Income/Total Assets (Jan23)
=211.079/2435.185
=0.08667884

Hovnanian Enterprises's return on assets of this year was 0.10523727. Hovnanian Enterprises's return on assets of last year was 0.08667884. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Hovnanian Enterprises's current Net Income (TTM) was 246. Hovnanian Enterprises's current Cash Flow from Operations (TTM) was 57. ==> 57 <= 246 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jan25)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jan24 to Jan25
=981.339/2467.4756
=0.39770971

Gearing (Last Year: Jan24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jan23 to Jan24
=1034.17/2429.2348
=0.42571842

Hovnanian Enterprises's gearing of this year was 0.39770971. Hovnanian Enterprises's gearing of last year was 0.42571842. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jan25)=Total Current Assets/Total Current Liabilities
=1843.418/441.894
=4.1716294

Current Ratio (Last Year: Jan24)=Total Current Assets/Total Current Liabilities
=1679.253/456.06
=3.68208788

Hovnanian Enterprises's current ratio of this year was 4.1716294. Hovnanian Enterprises's current ratio of last year was 3.68208788. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Hovnanian Enterprises's number of shares in issue this year was 7.071. Hovnanian Enterprises's number of shares in issue last year was 6.937. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=583.419/3084.345
=0.18915491

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=593.675/2834.846
=0.20942055

Hovnanian Enterprises's gross margin of this year was 0.18915491. Hovnanian Enterprises's gross margin of last year was 0.20942055. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jan24)
=3084.345/2340.378
=1.31788327

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jan23)
=2834.846/2435.185
=1.16411936

Hovnanian Enterprises's asset turnover of this year was 1.31788327. Hovnanian Enterprises's asset turnover of last year was 1.16411936. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hovnanian Enterprises has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Hovnanian Enterprises  (NYSE:HOV) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Hovnanian Enterprises Piotroski F-Score Related Terms

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Hovnanian Enterprises Business Description

Traded in Other Exchanges
Address
90 Matawan Road, Fifth Floor, Matawan, NJ, USA, 07747
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 West Segment.
Executives
Robin Stone Sellers director 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Edward A Kangas director 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Ara K Hovnanian director, 10 percent owner, officer: Chairman of Bd., Pres. & CEO 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Vincent Jr Pagano director 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
J Larry Sorsby director, officer: Exec. VP and CFO 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Joseph A Marengi director C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Miriam Hernandez-kakol director 90 MATAWAN ROAD, 5TH FLOOR, MATAWAN NJ 07747
Park West Asset Management Llc 10 percent owner 1 LETTERMAN DRIVE, SUITE C5-900, SAN FRANCISCO CA 94129
Hovnanian Family 2012 L.l.c. 10 percent owner C/O ARA K. HOVNANIAN, 110 WEST FRONT STREET, P.O. BOX 500, RED BANK NJ 07701
Lucian T. Smith officer: Chief Operating Officer 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Executors Of The Estate Of Kevork S. Hovnanian, Deceased 10 percent owner 425 LEXINGTON AVENUE, NEW YORK NY 10017
Thomas J. Pellerito officer: Chief Operating Officer 110 WEST FRONT STREET, RED BANK NJ 07701
Brad G O'connor officer: VP & Chief Accounting Officer 90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Paul W Buchanan officer: SVP Corporate Controller 10 HIGHWAY 35, P O BOX 500, RED BANK NJ 07701
Peter S Reinhart officer: Sr. VP/General Counsel 10 HIGHWAY 35, P O BOX 500, RED BANK NJ 07701