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.
What matters for quality investors.
NVR has achieved substantial revenue growth over the past 5 years, with a 7.56% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
With a robust ROIC excluding cash and goodwill at 138.0%, NVR 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 stands at 0.68, 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 95.94%, NVR 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 has experienced impressive EBIT growth over the past 5 years, with 15.32% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
NVR 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 NVR
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
Overall NVR gets a fundamental rating of 7 out of 10. We evaluated NVR against 65 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 correct valuation and a medium growth rate.
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.