Hovnanian EnterprisesHOVVB 68 Return-on-Tangible-Equity is -0.14% as of Apr. 2026. GuruFocus rates HOVVB with a GF Score™ of 68/100 and a GF Value™ of $101.84 (Fairly Valued). The stock has 9 warning signs investors should review. Among 94 Homebuilding & Construction companies, Hovnanian Enterprises ranks worse than 68.09% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Hovnanian Enterprises's annualized net income for the quarter that ended in Apr. 2026 was $-1 Mil. Hovnanian Enterprises's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $799 Mil. Therefore, Hovnanian Enterprises's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was -0.14%.
The historical rank and industry rank for Hovnanian Enterprises's Return-on-Tangible-Equity or its related term are showing as below:
HOVVB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.47 Med: 38.85 Max: 80.83
Current: 4.47
During the past 13 years, Hovnanian Enterprises's highest Return-on-Tangible-Equity was 80.83%. The lowest was 4.47%. And the median was 38.85%.
HOVVB's Return-on-Tangible-Equity is ranked worse than 68.09% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs HOVVB: 4.47
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Hovnanian Enterprises Return-on-Tangible-Equity Related Terms
Hovnanian Enterprises Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's Return-on-Tangible-Equity 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-Equity Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -0.14% mean?
Hovnanian Enterprises (HOVVB) has a Return-on-Tangible-Equity of -0.14% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hovnanian Enterprises and its competitors. Over the past decade, Hovnanian Enterprises' Return-on-Tangible-Equity has ranged from 4.47 to 80.83. According to the industry distribution chart, Hovnanian Enterprises ranks #64 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 68.1%.
Is Hovnanian Enterprises' Return-on-Tangible-Equity too high?
Hovnanian Enterprises' current Return-on-Tangible-Equity is -0.14%. Over the past 10 years, this metric has ranged from a low of 4.47 to a high of 80.83. Based on the distribution chart, Hovnanian Enterprises ranks #64 out of 94 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Hovnanian Enterprises has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' Return-on-Tangible-Equity compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #64 out of 94 companies for Return-on-Tangible-Equity. This places Hovnanian Enterprises in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.29. Historically, Hovnanian Enterprises' own Return-on-Tangible-Equity has ranged from 4.47 to 80.83 over the past decade. 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-Equity for a Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.29, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current Return-on-Tangible-Equity is -0.14%. 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 Fairly Valued. The stock's GF Value™ is $101.84, compared to a current price of $110.00 — trading 8% above its estimated fair value. The current Return-on-Tangible-Equity is -0.14%. Hovnanian Enterprises' overall GF Score™ is 68/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current Return-on-Tangible-Equity is -0.14% 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 8% above its estimated GF Value™ of $101.84.
GuruFocus considers Hovnanian Enterprises to be Fairly Valued.
Key valuation signals for HOVVB:
Return-on-Tangible-Equity: -0.14%
GF Value™: $101.84 vs. price of $110.00 (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.
68GF Score
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