Hovnanian Enterprises, Inc. (NYSE:HOV) is on our radar right now but there could still be some opportunities on the horizon. Now trading with a market value of 328.61M, the company has a mix of catalysts and obstacles that spring from the nature of its operations. In light of the many issues surrounding this company, we thought it was a good time to take a close look at the numbers in order to form a realistic perspective on the fundamental picture for this stock.
Hovnanian Enterprises, Inc. (NYSE:HOV) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For HOV, the company currently has 287.69 million of cash on the books, which is offset by 52.3 million in current liabilities. The trend over time is important to note. In this case, the company’s debt has been falling. The company also has 1.82 billion in total assets, balanced by 2.29 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Hovnanian Enterprises, Inc. (HOV) saw 30.94 million in free cash flow last quarter, representing a quarterly net change in cash of 4.95 million. Perhaps most importantly where cash movements are concerned, the company saw about 31.48 million in net operating cash flow.
Hovnanian Enterprises, Inc. (NYSE:HOV) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 592.4 million in total revenues. That represents a quarterly year/year change in revenues of -0.17 in sequential terms, the HOV saw sales decline by 0.01.
But what about the bottom line? After all, that’s what really matters in the end. Hovnanian Enterprises, Inc. (HOV) is intriguing when broken down to its core data. The cost of selling goods last quarter was 506.89 million, yielding a gross basic income of 85.51 million. For shareholders, given the total diluted outstanding shares of 147.75 million, this means overall earnings per share of -2.28.
Is Hovnanian Enterprises, Inc. (NYSE:HOV) Valuation Attractive
We consider a median price to earnings ratio on the stock, that corresponds with a stock price of 9,999. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Hovnanian Enterprises, Inc..