Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Hovnanian Enterprises's 10-Year RORE % for the quarter that ended in Apr. 2026 was 1.13%.
The industry rank for Hovnanian Enterprises's 10-Year RORE % or its related term are showing as below:
HOVVB's 10-Year RORE % is ranked worse than 56.94% of 72
companies
in the Homebuilding & Construction industry
Industry Median: 5.235
vs HOVVB: 1.13
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Hovnanian Enterprises 10-Year RORE % Related Terms
Hovnanian Enterprises 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's 10-Year RORE % 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: 10-Year RORE % Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Apr. 2026 and 10-year before.
Hovnanian Enterprises (HOVVB) has a 10-Year RORE % of 1.13 as of Apr. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Hovnanian Enterprises and its competitors. According to the industry distribution chart, Hovnanian Enterprises ranks #41 out of 72 companies in the Homebuilding & Construction industry, placing it in the top 56.9%.
Is Hovnanian Enterprises' 10-Year RORE % too high?
Hovnanian Enterprises' current 10-Year RORE % is 1.13. The Homebuilding & Construction industry median 10-Year RORE % is 5.24. Hovnanian Enterprises' value of 1.13 is 78.4% below this industry median. Based on the distribution chart, Hovnanian Enterprises ranks #41 out of 72 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' 10-Year RORE % compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #41 out of 72 companies for 10-Year RORE %. This places Hovnanian Enterprises in the lower half of its industry. The industry median 10-Year RORE % is 5.24. Hovnanian Enterprises' value of 1.13 is 78.4% 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 10-Year RORE % for a Homebuilding & Construction company?
The median 10-Year RORE % among Homebuilding & Construction companies is 5.24, based on 72 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hovnanian Enterprises's current 10-Year RORE % of 1.13 is 78.4% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median 10-Year RORE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current 10-Year RORE % is 1.13. 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 $108.23, compared to a current price of $110.00 — trading 1.6% above its estimated fair value. The current 10-Year RORE % is 1.13 and 78.4% below the Homebuilding & Construction industry median of 5.24. Hovnanian Enterprises' overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current 10-Year RORE % is 1.13 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 1.6% above its estimated GF Value™ of $108.23.
GuruFocus considers Hovnanian Enterprises to be Fairly Valued.
Key valuation signals for HOVVB:
10-Year RORE %: 1.13
GF Value™: $108.23 vs. price of $110.00 (1.6% above fair value)
Industry Position: 78.4% below the Homebuilding & Construction median (#41 of 72)
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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