Is Hovnanian Enterprises, Inc. (HOV) halal? Not Halal. Based on AAOIFI screening, Hovnanian Enterprises, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Hovnanian Enterprises, Inc.

HOV: Is Hovnanian Enterprises, Inc. Halal?

Not Halal

Hovnanian Enterprises, Inc.

NYSEConsumer CyclicalUS

$114.86

+1.84%

About Hovnanian Enterprises, Inc.

Hovnanian Enterprises, Inc. engages in the design, construction, marketing, and sale of 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, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters. It also provides mortgage loans and title insurance services. The company was founded in 1959 and is headquartered in Matawan, New Jersey.

Sector: Consumer Cyclical 路 Industry: Residential Construction

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap146.9% / 30.0%

Compliance History

Not Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: Q2 2026Source: EDGAR

Financial Overview

Market Cap

591.9M

Price

$114.86

Sector

Consumer Cyclical

Industry

Residential Construction

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Hovnanian Enterprises, Inc. (HOV) halal to invest in?
Hovnanian Enterprises, Inc. (HOV) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Hovnanian Enterprises, Inc. get a F compliance rating?
Hovnanian Enterprises, Inc. (HOV) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 146.9% (limit 30%); interest-bearing deposits of 46.6% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Hovnanian Enterprises, Inc.'s Shariah verdict?
Hovnanian Enterprises, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Hovnanian Enterprises, Inc. re-screened for Shariah compliance?
Hovnanian Enterprises, Inc. (HOV) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.