Is HOVNANIAN ENTERPRISES INC (HOV) Halal?
Shariah Screening — 5 Standards
Based on financial data from October 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 138.8% / 30% | 40.7% / 30% | 3.9% / 30% | 1.7% / 5% | ✗ NOT HALAL |
| DJIM | 138.8% / 33% | 40.7% / 33% | 3.9% / 33% | 1.7% / 5% | ✗ NOT HALAL |
| MSCI | 35.3% / 33% | 10.4% / 33% | 1.0% / 33% | 1.7% / 5% | ✗ NOT HALAL |
| S&P | 138.8% / 33% | 40.7% / 33% | 3.9% / 33% | 1.7% / 5% | ✗ NOT HALAL |
| FTSE | 35.3% / 33% | 10.4% / 33% | 1.0% / 50% | 1.7% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 15.2% | |
| Operating Margin | 2.0% | |
| Net Margin | 1.9% | |
| Return on Equity (ROE) | 6.9% | |
| Return on Assets (ROA) | 2.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $188M |
| Free Cash Flow | $166M |
| Total Debt | $930M |
| Debt-to-Equity | 124.2 |
| Current Ratio | 4.6 |
| Total Assets | $2.6B |
Price & Trading
| Last Close | $111.27 |
| 50-Day MA | $117.90 |
| 200-Day MA | $121.31 |
| Avg Volume | 100K |
| Beta | 2.1 |
|
52-Week Range
$81.15
| |
About HOVNANIAN ENTERPRISES INC (HOV)
Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas. The company markets and builds homes for first-time buyers, move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans and title services. Hovnanian Enterprises, Inc. was founded in 1959 and is based in Matawan, New Jersey.
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Frequently Asked Questions
Is HOVNANIAN ENTERPRISES INC (HOV) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), HOVNANIAN ENTERPRISES INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is HOVNANIAN ENTERPRISES INC's debt ratio?
HOVNANIAN ENTERPRISES INC's debt ratio is 138.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 35.3%.
What are HOVNANIAN ENTERPRISES INC's key financial metrics?
HOVNANIAN ENTERPRISES INC has a market capitalization of $634M, trailing P/E ratio of 16.5, and revenue of $3.0B. The company maintains a gross margin of 15.2% and a net margin of 1.9%. Return on equity stands at 6.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.