Hovnanian EnterprisesHOVVB 68 3-Year ROIIC % is -128.19 as of Oct. 2025. GuruFocus rates HOVVB with a GF Score™ of 68/100 and a GF Value™ of $122.32 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 91 Homebuilding & Construction companies, Hovnanian Enterprises ranks worse than 94.51% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Hovnanian Enterprises's 3-Year ROIIC % for the quarter that ended in Oct. 2025 was -128.19%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Hovnanian Enterprises's 3-Year ROIIC % or its related term are showing as below:
HOVVB's 3-Year ROIIC % is ranked worse than 94.51% of 91
companies
in the Homebuilding & Construction industry
Industry Median: -1.95
vs HOVVB: -128.19
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Hovnanian Enterprises 3-Year ROIIC % Related Terms
Hovnanian Enterprises 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Hovnanian Enterprises (HOVVB) has a 3-Year ROIIC % of -128.19 as of Oct. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hovnanian Enterprises and its competitors. According to the industry distribution chart, Hovnanian Enterprises ranks #86 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 94.5%.
Is Hovnanian Enterprises' 3-Year ROIIC % too high?
Hovnanian Enterprises' current 3-Year ROIIC % is -128.19. Based on the distribution chart, Hovnanian Enterprises ranks #86 out of 91 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Hovnanian Enterprises has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' 3-Year ROIIC % compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #86 out of 91 companies for 3-Year ROIIC %. This places Hovnanian Enterprises in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Homebuilding & Construction company?
A good 3-Year ROIIC % depends on the Homebuilding & Construction industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hovnanian Enterprises and its competitors. Hovnanian Enterprises's current 3-Year ROIIC % is -128.19. 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 3-Year ROIIC % is -128.19. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current 3-Year ROIIC % is -128.19 as of Oct. 2025. 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:
3-Year ROIIC %: -128.19
GF Value™: $122.32 vs. price of $110.00 (10.1% below 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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