HOV (Hovnanian Enterprises) ROCE %: 2.41% (As of Apr. 2026)

What is Hovnanian Enterprises ROCE %?

Hovnanian Enterprises HOV +11.31% 68 ROCE % is 2.41% as of Apr. 2026. GuruFocus rates HOV with a GF Score™ of 68/100 and a GF Value™ of $124.94 (Modestly Overvalued). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hovnanian Enterprises's annualized ROCE % for the quarter that ended in Apr. 2026 was 2.41%.

Hovnanian Enterprises (NYSE:HOV) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hovnanian Enterprises ROCE % Related Terms

Hovnanian Enterprises ROCE % Historical Data

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The historical data trend for Hovnanian Enterprises's ROCE % 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.

Hovnanian Enterprises ROCE % Chart

Hovnanian Enterprises Annual Data

Trend

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

Oct25

ROCE %

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15.86

19.29

15.46

16.94

5.72

Hovnanian Enterprises Quarterly Data
	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25	Apr25	Jul25	Oct25	Jan26	Apr26
ROCE %	Get a 7-Day Free Trial															6.85	5.87	1.03	7.70	2.41

68GF Score

Hovnanian Enterprises Inc HOV

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Hovnanian Enterprises ROCE % Calculation

Hovnanian Enterprises's annualized ROCE % for the fiscal year that ended in Oct. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2025 )		(A: Oct. 2024 )		(A: Oct. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2025 )		(A: Oct. 2024 )		(A: Oct. 2025 )
	=	121.528	/	( ( (2605.574 - 494.899)	+	(2633.913 - 497.17) )	/ 2 )
	=	121.528	/	( (2110.675	+	2136.743)	/ 2 )
	=	121.528	/	2123.709
	=	5.72 %

Hovnanian Enterprises's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	51.316	/	( ( (2734.676 - 628.615)	+	(2828.824 - 676.164) )	/ 2 )
	=	51.316	/	( ( 2106.061	+	2152.66 )	/ 2 )
	=	51.316	/	2129.3605
	=	2.41 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 2.41% mean?

Hovnanian Enterprises (HOV) has a ROCE % of 2.41% as of Apr. 2026.

Is Hovnanian Enterprises' ROCE % too high?

Hovnanian Enterprises' current ROCE % is 2.41%. The Homebuilding & Construction industry median ROCE % is 8.02. Hovnanian Enterprises' value of 2.41% is 70% below this industry median. Overall, Hovnanian Enterprises has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Hovnanian Enterprises' ROCE % compare to BZH and LEGH?

Hovnanian Enterprises' ROCE % of 2.41% can be compared against companies in the Homebuilding & Construction industry. The industry median ROCE % is 8.02. Hovnanian Enterprises' value of 2.41% is 70% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Homebuilding & Construction company?

The median ROCE % among Homebuilding & Construction companies is 8.02, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hovnanian Enterprises's current ROCE % of 2.41% is 70% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median ROCE % is 8.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current ROCE % is 2.41%. 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 $124.94, compared to a current price of $141.91 — trading 13.6% above its estimated fair value. The current ROCE % is 2.41% and 70% below the Homebuilding & Construction industry median of 8.02. Hovnanian Enterprises' overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Hovnanian Enterprises (HOV), the current ROCE % is 2.41% 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 $141.91 is trading 13.6% above its estimated GF Value™ of $124.94. GuruFocus considers Hovnanian Enterprises to be Modestly Overvalued.

Key valuation signals for HOV:

ROCE %: 2.41%
GF Value™: $124.94 vs. price of $141.91 (13.6% above fair value)
GF Score™: 68/100 with 7 warning signs
Industry Position: 70% below the Homebuilding & Construction median

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 Business Description

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies BZH LEGH LGIH NOBH VNJA SPHL DREM BDCC DFH GRBK DHI PHM LEN NVR TSE:1928 TOL IBP TMHC TSE:1911 LSE:BTRW

Other Exchanges HOVVB:USA HOVNP.PFD:USA

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 the West Segment.

68GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$141.91

Price

$124.94

GF Value

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