Is NYSE:NVR suited for quality investing?

In this article we will dive into NVR INC (NYSE:NVR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed NVR INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of NVR INC

• The 5-year revenue growth of NVR INC has been remarkable, with 10.85% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 157.0%, NVR INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• NVR INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.51, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of NVR INC stands at 98.29%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• With a robust 5-year EBIT growth of 21.36%, NVR INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• NVR INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NYSE:NVR

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

NVR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making NVR a very profitable company, without any liquidiy or solvency issues. NVR has a valuation in line with the averages, but it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of NVR

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.