Hovnanian Enterprises (Hovnanian Enterprises) GF Value Rank : 1 (As of May. 03, 2024)

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What is Hovnanian Enterprises GF Value Rank?

Hovnanian Enterprises has the GF Value Rank of 1.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Hovnanian Enterprises's GF Value Rank

For the Residential Construction subindustry, Hovnanian Enterprises's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hovnanian Enterprises's GF Value Rank falls into.

Hovnanian Enterprises GF Value Rank Related Terms

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Hovnanian Enterprises (Hovnanian Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Hovnanian Enterprises Inc (NAS:HOVNP.PFD) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

HOV:USA HO3A:Germany HO3A:Germany

Address

90 Matawan Road, Fifth Floor, Matawan, NJ, USA, 07747

Website

https://www.khov.com

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

Lucian T. Smith	officer: Chief Operating Officer	90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Robert B Coutts	director
Vincent Jr Pagano	director	90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Edward A Kangas	director	90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Joseph A Marengi	director	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Robin Stone Sellers	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
J Larry Sorsby	director, officer: Exec. VP and CFO	90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
Stephen D Weinroth	director	ANDERSEN WEINROTH & CO, 1330 AVE OF THE AMERICAS, NEW YORK NY 10019
Sirwart Hovnanian	other: Member of a 10% Owner Group	90 MATAWAN ROAD, FIFTH FLOOR, MATAWAN NJ 07747
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
Thomas J. Pellerito	officer: Chief Operating Officer	110 WEST FRONT STREET, RED BANK NJ 07701
Executors Of The Estate Of Kevork S. Hovnanian, Deceased	10 percent owner	425 LEXINGTON AVENUE, NEW YORK NY 10017
David G. Valiaveedan	officer: VP Finance & Treasurer	110 WEST FRONT STREET, RED BANK X1 07701
John J Robbins	director	10 HIGHWAY 35, P O BOX 500, RED BANK NJ 07701