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.
Highlighting Notable Quality Metrics of NYSE:NVR.
NVR INC has shown strong performance in revenue growth over the past 5 years, with a 6.14% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
With a notable ROIC excluding cash and goodwill at 138.0%, 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.
The Debt/Free Cash Flow Ratio of NVR INC stands at 0.61, 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.
With a robust Profit Quality (5-year) ratio of 99.15%, NVR INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
NVR INC has experienced impressive EBIT growth over the past 5 years, with 14.71% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
With EBIT 5-year growth outpacing its Revenue 5-year growth, NVR INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What else is there to say on the fundamentals of NYSE:NVR?
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, NVR scores 6 out of 10 in our fundamental rating. NVR was compared to 67 industry peers in the Household Durables industry. NVR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVR does not seem to be growing, but still is valued expensively.
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.