Why NVR INC (NYSE:NVR) qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NVR INC (NYSE:NVR) is suited for quality investing. Investors should of course do their own research, but we spotted NVR INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

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 robust ROIC excluding cash and goodwill at 157.0%, NVR INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of NVR INC stands at 0.51, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• NVR INC exhibits impressive Profit Quality (5-year) with a 98.29% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• NVR INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 21.36%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• NVR INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NYSE:NVR

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

NVR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. NVR gets an excellent profitability rating and is at the same time showing great financial health properties. NVR has a valuation in line with the averages, but on the other hand it scores bad on growth.

Check the latest full fundamental report of NVR for a complete fundamental analysis.

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.