Hovnanian EnterprisesHOV +4.00%67 Interest Coverage is 1.16 as of Apr. 2026, which is 29% below its 10-year median of 1.63. GuruFocus rates HOV with a GF Score™ of 67/100 and a GF Value™ of $124.95 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 78 Homebuilding & Construction companies, Hovnanian Enterprises ranks worse than 91.03% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Hovnanian Enterprises's
Operating Income
for the
three
months ended in Apr. 2026 was $15 Mil. Hovnanian Enterprises's Interest Expense for the
three
months ended in Apr. 2026 was $-12 Mil.
Hovnanian Enterprises's interest coverage for the quarter that ended in Apr. 2026 was 1.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hovnanian Enterprises's Interest Coverage or its related term are showing as below:
HOV'
s Interest Coverage Range Over the Past 10 Years
Min: 0.71 Med: 1.63 Max: 8.06
Current: 1.09
HOV's Interest Coverage is ranked worse than 91.03% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs HOV: 1.09
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Hovnanian Enterprises Interest Coverage Related Terms
Hovnanian Enterprises Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HOV vs BZH, LEGH, LGIH: Interest Coverage Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (HOV) has a Interest Coverage of 1.16 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hovnanian Enterprises and its competitors. This is 29% below median its historical median of 1.63. Over the past decade, Hovnanian Enterprises' Interest Coverage has ranged from 0.71 to 8.06. According to the industry distribution chart, Hovnanian Enterprises ranks #71 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 91%.
Is Hovnanian Enterprises' Interest Coverage too high?
Hovnanian Enterprises' current Interest Coverage of 1.16 is 29% below median its 10-year median of 1.63. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 8.06. The Homebuilding & Construction industry median Interest Coverage is 8.31. Hovnanian Enterprises' value of 1.16 is 86% below this industry median. Based on the distribution chart, Hovnanian Enterprises ranks #71 out of 78 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. 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' Interest Coverage compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #71 out of 78 companies for Interest Coverage. This places Hovnanian Enterprises in the lower half of its industry. The industry median Interest Coverage is 8.31. Hovnanian Enterprises' value of 1.16 is 86% below this benchmark. Historically, Hovnanian Enterprises' own Interest Coverage has ranged from 0.71 to 8.06 over the past decade. While the company's 10-year median is 1.63 vs. the industry median of 8.31, Hovnanian Enterprises has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hovnanian Enterprises's current Interest Coverage of 1.16 is 86% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current Interest Coverage is 1.16, which is 29% below median its own 10-year median of 1.63. 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 (HOV) is currently considered Modestly Overvalued. The stock's GF Value™ is $124.95, compared to a current price of $147.55 — trading 18.1% above its estimated fair value. The current Interest Coverage is 1.16, which is 29% below median its 10-year median of 1.63 and 86% below the Homebuilding & Construction industry median of 8.31. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hovnanian Enterprises (HOV), the current Interest Coverage is 1.16 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 (HOV) Overvalued in 2026?
Based on GuruFocus' analysis, Hovnanian Enterprises stock appears to be overvalued.
The current stock price of $147.55 is trading 18.1% above its estimated GF Value™ of $124.95.
GuruFocus considers Hovnanian Enterprises to be Modestly Overvalued.
Key valuation signals for HOV:
Interest Coverage: 1.16 (29% below median its 10-year median of 1.63)
GF Value™: $124.95 vs. price of $147.55 (18.1% above fair value)
Industry Position: 86% below the Homebuilding & Construction median (#71 of 78)
No single metric tells the full story. See the HOV 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
Get the complete analysis for HOV
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