Hovnanian EnterprisesHOVVB 70 Return-on-Tangible-Asset is -0.04% as of Apr. 2026. GuruFocus rates HOVVB with a GF Score™ of 70/100 and a GF Value™ of $108.08 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 95 Homebuilding & Construction companies, Hovnanian Enterprises ranks worse than 72.63% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Hovnanian Enterprises's annualizedNet Income for the quarter that ended in Apr. 2026 was $-1 Mil. Hovnanian Enterprises's average total tangible assets for the quarter that ended in Apr. 2026 was $2,750 Mil. Therefore, Hovnanian Enterprises's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was -0.04%.
The historical rank and industry rank for Hovnanian Enterprises's Return-on-Tangible-Asset or its related term are showing as below:
HOVVB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -15.61 Med: 2.6 Max: 29.31
Current: 1.37
During the past 13 years, Hovnanian Enterprises's highest Return-on-Tangible-Asset was 29.31%. The lowest was -15.61%. And the median was 2.60%.
HOVVB's Return-on-Tangible-Asset is ranked worse than 72.63% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 3.2
vs HOVVB: 1.37
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Hovnanian Enterprises Return-on-Tangible-Asset Related Terms
Hovnanian Enterprises Return-on-Tangible-Asset Historical Data
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The historical data trend for Hovnanian Enterprises's Return-on-Tangible-Asset 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, VNJA: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of -0.04% mean?
Hovnanian Enterprises (HOVVB) has a Return-on-Tangible-Asset of -0.04% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hovnanian Enterprises and its competitors. According to the industry distribution chart, Hovnanian Enterprises ranks #69 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 72.6%.
Is Hovnanian Enterprises' Return-on-Tangible-Asset too high?
Hovnanian Enterprises' current Return-on-Tangible-Asset is -0.04%. Based on the distribution chart, Hovnanian Enterprises ranks #69 out of 95 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Hovnanian Enterprises has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' Return-on-Tangible-Asset compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #69 out of 95 companies for Return-on-Tangible-Asset. This places Hovnanian Enterprises in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.20, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current Return-on-Tangible-Asset is -0.04%. 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 Undervalued. The stock's GF Value™ is $108.08, compared to a current price of $110.00 — trading 1.8% above its estimated fair value. The current Return-on-Tangible-Asset is -0.04%. Hovnanian Enterprises' overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current Return-on-Tangible-Asset is -0.04% 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 1.8% above its estimated GF Value™ of $108.08.
GuruFocus considers Hovnanian Enterprises to be Modestly Undervalued.
Key valuation signals for HOVVB:
Return-on-Tangible-Asset: -0.04%
GF Value™: $108.08 vs. price of $110.00 (1.8% above fair value)
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.
70GF Score
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