Hovnanian Enterprises Inc Dep Shr Srs A Pfd (HOVNP)

FairStock Score: 18/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Hovnanian's Series A preferred as a claim on a cyclical enterprise, not as a bond substitute. The filed numbers show a business under pressure. In fiscal Q3 2026, the quarter ended 2026-07-31, revenue was $705.7M and net income was a loss of $1.8M, or -$0.70 per diluted share. That compares poorly with fiscal Q3 2025, when revenue was $800.6M and net income was $16.6M. For FY2025, the company earned $63.9M on $3.0B of revenue, down sharply from $242.0M in FY2024. Revenue growth of -11.85% and profit growth of -110.84% confirm the deterioration. The Lynch category is Slow Grower, with 4.6% profit growth and 4.9% revenue growth over five years, but the recent trend is worse than that label implies. Financial health is not reassuring: the Piotroski F-Score is 2/9 and the Altman Z-Score is 1.82, both FairStock calculations. The EV/EBITDA is 45.78, which is high for a cyclical. The one bright spot is trailing free cash flow of $197.8M, a 6.3% FCF yield. But at $17.02 on 2026-10-13, near the low end of the 52-week range of $16.89-$21.90, I see no margin of safety. The FairStock Score of 18/100 reinforces caution. Until earnings stabilize and balance-sheet risks ease, this preferred looks speculative.

In plain English: Hovnanian Enterprises is a company in a consumer-spending-related business, and it has publicly traded preferred shares. The business looks weak right now: recent quarters have swung to losses, and full-year profit fell sharply from the prior year. At $17.02, the price looks expensive relative to those weakening numbers, even though the company still generates some cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-31) · fiscal Q2 2026 10-Q (period ended 2026-04-30) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-07-31) · FY2025 10-K (period ended 2025-10-31) · FY2024 10-K (period ended 2024-10-31) · FY2023 10-K (period ended 2023-10-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer