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 3-Year RORE % for the quarter that ended in Apr. 2026 was -42.39%.
The industry rank for Hovnanian Enterprises's 3-Year RORE % or its related term are showing as below:
HOVVB's 3-Year RORE % is ranked worse than 82.42% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 0.88
vs HOVVB: -42.39
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, 3-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 3-Year RORE % Related Terms
Hovnanian Enterprises 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises's 3-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: 3-Year RORE % Comparison
For the Residential Construction subindustry, Hovnanian Enterprises's 3-Year RORE %, along with its competitors' market caps and 3-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 3-Year RORE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's 3-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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Apr. 2026 and 3-year before.
Hovnanian Enterprises (HOVVB) has a 3-Year RORE % of -42.39 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hovnanian Enterprises and its competitors. According to the industry distribution chart, Hovnanian Enterprises ranks #75 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 82.4%.
Is Hovnanian Enterprises' 3-Year RORE % too high?
Hovnanian Enterprises' current 3-Year RORE % is -42.39. Based on the distribution chart, Hovnanian Enterprises ranks #75 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' 3-Year RORE % compare to BZH and LEGH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #75 out of 91 companies for 3-Year RORE %. This places Hovnanian Enterprises in the lower half of its industry. The industry median 3-Year RORE % is 0.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Homebuilding & Construction company?
The median 3-Year RORE % among Homebuilding & Construction companies is 0.88, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median 3-Year RORE % is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current 3-Year RORE % is -42.39. 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 $102.22, compared to a current price of $110.00 — trading 7.6% above its estimated fair value. The current 3-Year RORE % is -42.39. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current 3-Year RORE % is -42.39 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 7.6% above its estimated GF Value™ of $102.22.
GuruFocus considers Hovnanian Enterprises to be Fairly Valued.
Key valuation signals for HOVVB:
3-Year RORE %: -42.39
GF Value™: $102.22 vs. price of $110.00 (7.6% 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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