NVR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

NVR had positive earnings in the past year.
NVR had a positive operating cash flow in the past year.
NVR had positive earnings in each of the past 5 years.
In the past 5 years NVR always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 23.75%, NVR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of NVR (36.14%) is better than 98.33% of its industry peers.
The Return On Invested Capital of NVR (31.48%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVR is significantly above the industry average of 9.71%.

		Industry Rank	Sector Rank
ROA	23.75%
ROE	36.14%
ROIC	31.48%

ROA(3y)26.99%

ROA(5y)23.55%

ROE(3y)41.88%

ROE(5y)39.17%

ROIC(3y)35.26%

ROIC(5y)30.98%

1.3 Margins

NVR has a Profit Margin of 13.54%. This is amongst the best in the industry. NVR outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of NVR has grown nicely.
NVR has a Operating Margin of 17.89%. This is amongst the best in the industry. NVR outperforms 93.33% of its industry peers.
NVR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.61%, NVR perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NVR has grown nicely.

		Industry Rank	Sector Rank
OM	17.89%
PM (TTM)	13.54%
GM	24.61%

OM growth 3Y3.03%

OM growth 5Y7.21%

PM growth 3Y4.48%

PM growth 5Y5.86%

GM growth 3Y2.61%

GM growth 5Y4.57%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVR is creating value.
The number of shares outstanding for NVR has been reduced compared to 1 year ago.
The number of shares outstanding for NVR has been reduced compared to 5 years ago.
NVR has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 13.49 indicates that NVR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.49, NVR belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
NVR has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
NVR's Debt to FCF ratio of 0.70 is fine compared to the rest of the industry. NVR outperforms 76.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that NVR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.23, NVR is doing good in the industry, outperforming 63.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.23
Debt/FCF	0.7
Altman-Z	13.49

ROIC/WACC3.34

WACC9.43%

2.3 Liquidity

NVR has a Current Ratio of 3.58. This indicates that NVR is financially healthy and has no problem in meeting its short term obligations.
NVR has a Current ratio of 3.58. This is in the better half of the industry: NVR outperforms 63.33% of its industry peers.
A Quick Ratio of 1.74 indicates that NVR should not have too much problems paying its short term obligations.
NVR's Quick ratio of 1.74 is fine compared to the rest of the industry. NVR outperforms 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.58
Quick Ratio	1.74

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WACC

Debt/Equity

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3. Growth

3.1 Past

The earnings per share for NVR have decreased by -6.85% in the last year.
NVR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.06% yearly.
Looking at the last year, NVR shows a small growth in Revenue. The Revenue has grown by 2.93% in the last year.
The Revenue has been growing slightly by 7.56% on average over the past years.

EPS 1Y (TTM)-6.85%

EPS 3Y16.48%

EPS 5Y18.06%

EPS Q2Q%-13.92%

Revenue 1Y (TTM)2.93%

Revenue growth 3Y6.03%

Revenue growth 5Y7.56%

Sales Q2Q%-4.38%

3.2 Future

The Earnings Per Share is expected to decrease by -1.90% on average over the next years.
The Revenue is expected to decrease by -0.59% on average over the next years.

EPS Next Y-16%

EPS Next 2Y-9.25%

EPS Next 3Y-1.9%

EPS Next 5YN/A

Revenue Next Year-1.98%

Revenue Next 2Y-3.96%

Revenue Next 3Y-0.59%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

NVR is valuated correctly with a Price/Earnings ratio of 16.78.
NVR's Price/Earnings ratio is in line with the industry average.
NVR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
NVR is valuated rather expensively with a Price/Forward Earnings ratio of 18.29.
The rest of the industry has a similar Price/Forward Earnings ratio as NVR.
NVR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	16.78
Fwd PE	18.29

4.2 Price Multiples

NVR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVR indicates a somewhat cheap valuation: NVR is cheaper than 61.67% of the companies listed in the same industry.