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 6.14% 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 142.0%, 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 maintains a healthy Debt/Free Cash Flow Ratio of 0.7, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
The Profit Quality (5-year) of NVR INC stands at 99.15%, 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.
NVR INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.71%. 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.
How does the complete fundamental picture look for NYSE:NVR?
Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.
We assign a fundamental rating of 6 out of 10 to NVR. NVR was compared to 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 is valued expensive and it does not seem to be growing.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.