NVR INC (NVR) Stock Fundamental Analysis
NYSE:NVR - New York Stock Exchange, Inc. - US62944T1051 - Common Stock
NVR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. NVR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NVR was profitable.
NVR had a positive operating cash flow in the past year.
Each year in the past 5 years NVR has been profitable.
NVR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NVR (25.19%) is better than 98.46% of its industry peers.
NVR has a better Return On Equity (38.27%) than 95.38% of its industry peers.
NVR has a better Return On Invested Capital (31.53%) than 98.46% 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 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.19% | ||
| ROE | 38.27% | ||
| ROIC | 31.53% |
ROA(3y)25.27%
ROA(5y)22.89%
ROE(3y)42.29%
ROE(5y)38.69%
ROIC(3y)33.2%
ROIC(5y)29.46%
1.3 Margins
Looking at the Profit Margin, with a value of 15.89%, NVR belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Profit Margin of NVR has grown nicely.
NVR has a Operating Margin of 19.97%. This is amongst the best in the industry. NVR outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of NVR has grown nicely.
NVR's Gross Margin of 26.72% is in line compared to the rest of the industry. NVR outperforms 53.85% of its industry peers.
In the last couple of years the Gross Margin of NVR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.97% | ||
| PM (TTM) | 15.89% | ||
| GM | 26.72% |
OM growth 3Y10.94%
OM growth 5Y8.07%
PM growth 3Y11.32%
PM growth 5Y8.19%
GM growth 3Y8.12%
GM growth 5Y5.49%
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.
NVR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NVR has been reduced compared to 5 years ago.
Compared to 1 year ago, NVR has an improved debt to assets ratio.
2.2 Solvency
NVR has an Altman-Z score of 13.34. This indicates that NVR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVR (13.34) is better than 98.46% of its industry peers.
The Debt to FCF ratio of NVR is 0.76, which is an excellent value as it means it would take NVR, only 0.76 years of fcf income to pay off all of its debts.
NVR has a better Debt to FCF ratio (0.76) than 80.00% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that NVR is not too dependend on debt financing.
NVR has a Debt to Equity ratio of 0.21. This is in the better half of the industry: NVR outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 13.34 |
ROIC/WACC3.5
WACC9.02%
2.3 Liquidity
NVR has a Current Ratio of 3.68. This indicates that NVR is financially healthy and has no problem in meeting its short term obligations.
NVR has a Current ratio of 3.68. This is in the better half of the industry: NVR outperforms 66.15% of its industry peers.
NVR has a Quick Ratio of 1.95. This is a normal value and indicates that NVR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.95, NVR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.95% over the past year.
The Earnings Per Share has been growing by 19.04% on average over the past years. This is quite good.
Looking at the last year, NVR shows a small growth in Revenue. The Revenue has grown by 3.42% in the last year.
NVR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.14% yearly.
EPS 1Y (TTM)2.95%
EPS 3Y26.38%
EPS 5Y19.04%
EPS Q2Q%4.18%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y8.59%
Revenue growth 5Y6.14%
Sales Q2Q%6.58%
3.2 Future
NVR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.34% yearly.
Based on estimates for the next years, NVR will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y7.92%
EPS Next 2Y6.28%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue Next Year7.43%
Revenue Next 2Y6.67%
Revenue Next 3Y6.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.06 indicates a rather expensive valuation of NVR.
The rest of the industry has a similar Price/Earnings ratio as NVR.
Compared to an average S&P500 Price/Earnings ratio of 28.29, NVR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.95, the valuation of NVR can be described as correct.
NVR's Price/Forward Earnings is on the same level as the industry average.
NVR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
NVR's Enterprise Value to EBITDA ratio is in line with the industry average.
NVR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.23 | ||
| EV/EBITDA | 11.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NVR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)0.9
EPS Next 2Y6.28%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
NVR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NVR INC
NYSE:NVR (1/21/2025, 10:27:00 PM)
After market: 8347.05 0 (0%)8347.05
-15.81 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.73%
Inst Owner Change-12.34%
Ins Owners4.45%
Ins Owner Change-0.2%
Market Cap25.54B
Analysts70.91
Price Target9960.3 (19.33%)
Short Float %2.34%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.39%
Min EPS beat(2)-1.42%
Max EPS beat(2)-1.37%
EPS beat(4)1
Avg EPS beat(4)1.78%
Min EPS beat(4)-1.42%
Max EPS beat(4)10.86%
EPS beat(8)5
Avg EPS beat(8)9.28%
EPS beat(12)6
Avg EPS beat(12)6.22%
EPS beat(16)7
Avg EPS beat(16)4.9%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.67%
Revenue beat(4)2
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-8.65%
Max Revenue beat(4)1.88%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)6
Avg Revenue beat(12)-0.46%
Revenue beat(16)9
Avg Revenue beat(16)0.01%
PT rev (1m)-1.93%
PT rev (3m)5.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.95 | ||
| P/S | 2.48 | ||
| P/FCF | 21.23 | ||
| P/OCF | 20.71 | ||
| P/B | 5.98 | ||
| P/tB | 6.05 | ||
| EV/EBITDA | 11.55 |
EPS(TTM)489.16
EY5.86%
EPS(NY)523.23
Fwd EY6.27%
FCF(TTM)393.17
FCFY4.71%
OCF(TTM)402.98
OCFY4.83%
SpS3361.6
BVpS1395.83
TBVpS1379.84
PEG (NY)2.15
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.19% | ||
| ROE | 38.27% | ||
| ROCE | 39.64% | ||
| ROIC | 31.53% | ||
| ROICexc | 61.17% | ||
| ROICexgc | 129.49% | ||
| OM | 19.97% | ||
| PM (TTM) | 15.89% | ||
| GM | 26.72% | ||
| FCFM | 11.7% |
ROA(3y)25.27%
ROA(5y)22.89%
ROE(3y)42.29%
ROE(5y)38.69%
ROIC(3y)33.2%
ROIC(5y)29.46%
ROICexc(3y)78.78%
ROICexc(5y)66.23%
ROICexgc(3y)157.15%
ROICexgc(5y)135.46%
ROCE(3y)41.73%
ROCE(5y)37.03%
ROICexcg growth 3Y13.35%
ROICexcg growth 5Y6.17%
ROICexc growth 3Y14.77%
ROICexc growth 5Y9.58%
OM growth 3Y10.94%
OM growth 5Y8.07%
PM growth 3Y11.32%
PM growth 5Y8.19%
GM growth 3Y8.12%
GM growth 5Y5.49%
F-Score5
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 169.12% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 70.85 | ||
| Cash Conversion | 59.51% | ||
| Profit Quality | 73.6% | ||
| Current Ratio | 3.68 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 13.34 |
F-Score5
WACC9.02%
ROIC/WACC3.5
Cap/Depr(3y)114.87%
Cap/Depr(5y)105.38%
Cap/Sales(3y)0.21%
Cap/Sales(5y)0.23%
Profit Quality(3y)99.61%
Profit Quality(5y)99.15%
High Growth Momentum
Growth
EPS 1Y (TTM)2.95%
EPS 3Y26.38%
EPS 5Y19.04%
EPS Q2Q%4.18%
EPS Next Y7.92%
EPS Next 2Y6.28%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue 1Y (TTM)3.42%
Revenue growth 3Y8.59%
Revenue growth 5Y6.14%
Sales Q2Q%6.58%
Revenue Next Year7.43%
Revenue Next 2Y6.67%
Revenue Next 3Y6.53%
Revenue Next 5YN/A
EBIT growth 1Y0.37%
EBIT growth 3Y20.46%
EBIT growth 5Y14.71%
EBIT Next Year1.08%
EBIT Next 3Y1.08%
EBIT Next 5YN/A
FCF growth 1Y-7.1%
FCF growth 3Y17.45%
FCF growth 5Y15.93%
OCF growth 1Y-6.08%
OCF growth 3Y17.42%
OCF growth 5Y15.68%