Hovnanian EnterprisesHOVVB 69 ROC (Joel Greenblatt) % is 4.49% as of Apr. 2026, which is 64% below its 10-year median of 12.59. GuruFocus rates HOVVB with a GF Score™ of 69/100 and a GF Value™ of $122.32 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 95 Homebuilding & Construction companies, Hovnanian Enterprises ranks worse than 65.26% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Hovnanian Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 4.49%.
The historical rank and industry rank for Hovnanian Enterprises's ROC (Joel Greenblatt) % or its related term are showing as below:
HOVVB'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.55 Med: 12.59 Max: 38.54
Current: 7.32
During the past 13 years, Hovnanian Enterprises's highest ROC (Joel Greenblatt) % was 38.54%. The lowest was 4.55%. And the median was 12.59%.
HOVVB's ROC (Joel Greenblatt) % is ranked worse than 65.26% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 11.3
vs HOVVB: 7.32
Hovnanian Enterprises's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -4.10% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Hovnanian Enterprises ROC (Joel Greenblatt) % Related Terms
Hovnanian Enterprises ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 4.49% mean?
Hovnanian Enterprises (HOVVB) has a ROC (Joel Greenblatt) % of 4.49% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Hovnanian Enterprises and its competitors. This is 64% below median its historical median of 12.59. Over the past decade, Hovnanian Enterprises' ROC (Joel Greenblatt) % has ranged from 4.55 to 38.54. According to the industry distribution chart, Hovnanian Enterprises ranks #62 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 65.3%.
Is Hovnanian Enterprises' ROC (Joel Greenblatt) % too high?
Hovnanian Enterprises' current ROC (Joel Greenblatt) % of 4.49% is 64% below median its 10-year median of 12.59. Over the past 10 years, this metric has ranged from a low of 4.55 to a high of 38.54. The Homebuilding & Construction industry median ROC (Joel Greenblatt) % is 11.30. Hovnanian Enterprises' value of 4.49% is 60.3% below this industry median. Based on the distribution chart, Hovnanian Enterprises ranks #62 out of 95 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Hovnanian Enterprises has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' ROC (Joel Greenblatt) % compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #62 out of 95 companies for ROC (Joel Greenblatt) %. This places Hovnanian Enterprises in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.30. Hovnanian Enterprises' value of 4.49% is 60.3% below this benchmark. Historically, Hovnanian Enterprises' own ROC (Joel Greenblatt) % has ranged from 4.55 to 38.54 over the past decade. While the company's 10-year median is 12.59 vs. the industry median of 11.30, 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 ROC (Joel Greenblatt) % for a Homebuilding & Construction company?
The median ROC (Joel Greenblatt) % among Homebuilding & Construction companies is 11.30, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hovnanian Enterprises's current ROC (Joel Greenblatt) % of 4.49% is 60.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median ROC (Joel Greenblatt) % is 11.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current ROC (Joel Greenblatt) % is 4.49%, which is 64% below median its own 10-year median of 12.59. 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 $122.32, compared to a current price of $110.00 — trading 10.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 4.49%, which is 64% below median its 10-year median of 12.59 and 60.3% below the Homebuilding & Construction industry median of 11.30. Hovnanian Enterprises' overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current ROC (Joel Greenblatt) % is 4.49% 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 undervalued.
The current stock price of $110.00 is trading 10.1% below its estimated GF Value™ of $122.32.
GuruFocus considers Hovnanian Enterprises to be Modestly Undervalued.
Key valuation signals for HOVVB:
ROC (Joel Greenblatt) %: 4.49% (64% below median its 10-year median of 12.59)
GF Value™: $122.32 vs. price of $110.00 (10.1% below fair value)
Industry Position: 60.3% below the Homebuilding & Construction median (#62 of 95)
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.
69GF Score
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