NVR INC (NVR) Stock Fundamental Analysis
NYSE:NVR - New York Stock Exchange, Inc. - US62944T1051 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NVR. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NVR had positive earnings in the past year.
In the past year NVR had a positive cash flow from operations.
Each year in the past 5 years NVR has been profitable.
Of the past 5 years NVR 4 years had a positive operating cash flow.
1.2 Ratios
NVR has a Return On Assets of 25.19%. This is amongst the best in the industry. NVR outperforms 98.46% of its industry peers.
NVR's Return On Equity of 38.27% is amongst the best of the industry. NVR outperforms 95.38% of its industry peers.
NVR has a better Return On Invested Capital (32.12%) 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 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.19% | ||
| ROE | 38.27% | ||
| ROIC | 32.12% |
ROA(3y)26.99%
ROA(5y)23.55%
ROE(3y)41.88%
ROE(5y)39.17%
ROIC(3y)35.29%
ROIC(5y)30.99%
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.
The Operating Margin of NVR (19.97%) is better than 92.31% of its industry peers.
In the last couple of years the Operating Margin of NVR has grown nicely.
NVR has a Gross Margin of 26.72%. This is comparable to the rest of the industry: NVR outperforms 53.85% of its industry peers.
NVR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.97% | ||
| PM (TTM) | 15.89% | ||
| GM | 26.72% |
OM growth 3Y3.03%
OM growth 5Y7.21%
PM growth 3Y4.48%
PM growth 5Y5.86%
GM growth 3Y2.61%
GM growth 5Y4.57%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NVR has less shares outstanding
NVR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.34 indicates that NVR is not in any danger for bankruptcy at the moment.
NVR has a Altman-Z score of 12.34. This is amongst the best in the industry. NVR outperforms 98.46% of its industry peers.
NVR has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
NVR has a Debt to FCF ratio of 0.76. This is amongst the best in the industry. NVR outperforms 81.54% 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 (0.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 12.34 |
ROIC/WACC3.52
WACC9.13%
2.3 Liquidity
A Current Ratio of 3.68 indicates that NVR has no problem at all paying its short term obligations.
NVR's Current ratio of 3.68 is fine compared to the rest of the industry. NVR outperforms 66.15% of its industry peers.
A Quick Ratio of 1.95 indicates that NVR should not have too much problems paying its short term obligations.
NVR has a better Quick ratio (1.95) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
NVR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.56%, which is quite good.
Measured over the past years, NVR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.06% on average per year.
Looking at the last year, NVR shows a quite strong growth in Revenue. The Revenue has grown by 10.38% in the last year.
The Revenue has been growing slightly by 7.56% on average over the past years.
EPS 1Y (TTM)9.56%
EPS 3Y16.48%
EPS 5Y18.06%
EPS Q2Q%15.11%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y6.03%
Revenue growth 5Y7.56%
Sales Q2Q%16.49%
3.2 Future
NVR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.56% yearly.
Based on estimates for the next years, NVR will show a small growth in Revenue. The Revenue will grow by 3.70% on average per year.
EPS Next Y0.23%
EPS Next 2Y4.59%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue Next Year1.73%
Revenue Next 2Y3.7%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.98, the valuation of NVR can be described as correct.
NVR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NVR to the average of the S&P500 Index (29.63), we can say NVR is valued rather cheaply.
The Price/Forward Earnings ratio is 13.95, which indicates a correct valuation of NVR.
NVR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, NVR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
NVR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NVR is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NVR does not grow enough to justify the current Price/Earnings ratio.
NVR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)62
PEG (5Y)0.77
EPS Next 2Y4.59%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
No dividends for NVR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7094.8
-163.2 (-2.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners85.73%
Inst Owner Change3.49%
Ins Owners4.45%
Ins Owner Change-0.36%
Market Cap21.36B
Analysts70.91
Price Target9382.3 (32.24%)
Short Float %2.81%
Short Ratio3.16
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)-5.8%
PT rev (3m)-4.02%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)-2.78%
EPS NY rev (3m)-4.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)-3.94%
Revenue NY rev (3m)-5.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 13.95 | ||
| P/S | 2.08 | ||
| P/FCF | 17.75 | ||
| P/OCF | 17.32 | ||
| P/B | 5 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)507.53
EY7.15%
EPS(NY)508.67
Fwd EY7.17%
FCF(TTM)399.7
FCFY5.63%
OCF(TTM)409.67
OCFY5.77%
SpS3417.44
BVpS1419.02
TBVpS1402.76
PEG (NY)62
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.19% | ||
| ROE | 38.27% | ||
| ROCE | 39.64% | ||
| ROIC | 32.12% | ||
| ROICexc | 62.3% | ||
| ROICexgc | 131.88% | ||
| OM | 19.97% | ||
| PM (TTM) | 15.89% | ||
| GM | 26.72% | ||
| FCFM | 11.7% |
ROA(3y)26.99%
ROA(5y)23.55%
ROE(3y)41.88%
ROE(5y)39.17%
ROIC(3y)35.29%
ROIC(5y)30.99%
ROICexc(3y)80.47%
ROICexc(5y)71.82%
ROICexgc(3y)162.46%
ROICexgc(5y)144.67%
ROCE(3y)43.56%
ROCE(5y)38.25%
ROICexcg growth 3Y1.77%
ROICexcg growth 5Y5.59%
ROICexc growth 3Y0.34%
ROICexc growth 5Y7.89%
OM growth 3Y3.03%
OM growth 5Y7.21%
PM growth 3Y4.48%
PM growth 5Y5.86%
GM growth 3Y2.61%
GM growth 5Y4.57%
F-Score6
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 | 12.34 |
F-Score6
WACC9.13%
ROIC/WACC3.52
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.56%
EPS 3Y16.48%
EPS 5Y18.06%
EPS Q2Q%15.11%
EPS Next Y0.23%
EPS Next 2Y4.59%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue 1Y (TTM)10.38%
Revenue growth 3Y6.03%
Revenue growth 5Y7.56%
Sales Q2Q%16.49%
Revenue Next Year1.73%
Revenue Next 2Y3.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.37%
EBIT growth 3Y9.24%
EBIT growth 5Y15.32%
EBIT Next Year-5.26%
EBIT Next 3Y2.08%
EBIT Next 5YN/A
FCF growth 1Y-32.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-32.23%
OCF growth 3YN/A
OCF growth 5YN/A