NVR INC (NVR) Stock Fundamental Analysis
NYSE:NVR - New York Stock Exchange, Inc. - US62944T1051 - Common Stock - Currency: USD
Overall NVR gets a fundamental rating of 6 out of 10. We evaluated NVR against 64 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NVR was profitable.
In the past year NVR had a positive cash flow from operations.
Each year in the past 5 years NVR has been profitable.
In the past 5 years NVR always reported a positive cash flow from operatings.
1.2 Ratios
NVR's Return On Assets of 25.62% is amongst the best of the industry. NVR outperforms 100.00% of its industry peers.
NVR has a better Return On Equity (40.14%) than 98.44% of its industry peers.
NVR has a better Return On Invested Capital (34.56%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVR is significantly above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.62% | ||
| ROE | 40.14% | ||
| ROIC | 34.56% |
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 better Profit Margin (14.77%) than 93.75% of its industry peers.
NVR's Profit Margin has improved in the last couple of years.
The Operating Margin of NVR (19.31%) is better than 93.75% of its industry peers.
In the last couple of years the Operating Margin of NVR has grown nicely.
NVR has a Gross Margin of 25.94%. This is comparable to the rest of the industry: NVR outperforms 51.56% of its industry peers.
NVR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.31% | ||
| PM (TTM) | 14.77% | ||
| GM | 25.94% |
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
NVR has an Altman-Z score of 12.85. This indicates that NVR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.85, NVR belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
The Debt to FCF ratio of NVR is 0.65, which is an excellent value as it means it would take NVR, only 0.65 years of fcf income to pay off all of its debts.
NVR's Debt to FCF ratio of 0.65 is amongst the best of the industry. NVR outperforms 85.94% of its industry peers.
NVR has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NVR (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 12.85 |
ROIC/WACC3.96
WACC8.73%
2.3 Liquidity
NVR has a Current Ratio of 3.28. This indicates that NVR is financially healthy and has no problem in meeting its short term obligations.
NVR has a better Current ratio (3.28) than 62.50% of its industry peers.
A Quick Ratio of 1.69 indicates that NVR should not have too much problems paying its short term obligations.
NVR has a better Quick ratio (1.69) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
NVR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.29%.
The Earnings Per Share has been growing by 18.06% on average over the past years. This is quite good.
Looking at the last year, NVR shows a quite strong growth in Revenue. The Revenue has grown by 9.10% in the last year.
NVR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.56% yearly.
EPS 1Y (TTM)1.29%
EPS 3Y16.48%
EPS 5Y18.06%
EPS Q2Q%-18.54%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y6.03%
Revenue growth 5Y7.56%
Sales Q2Q%2.81%
3.2 Future
The Earnings Per Share is expected to grow by 3.43% on average over the next years.
Based on estimates for the next years, NVR will show a decrease in Revenue. The Revenue will decrease by -2.52% on average per year.
EPS Next Y-16.88%
EPS Next 2Y-5.65%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue Next Year-5.11%
Revenue Next 2Y-2.52%
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
The Price/Earnings ratio is 15.69, which indicates a correct valuation of NVR.
The rest of the industry has a similar Price/Earnings ratio as NVR.
NVR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.87, the valuation of NVR can be described as correct.
NVR's Price/Forward Earnings is on the same level as the industry average.
NVR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVR indicates a somewhat cheap valuation: NVR is cheaper than 70.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.8 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
The excellent profitability rating of NVR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y-5.65%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
No dividends for NVR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7623.24
-145.27 (-1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.29%
Inst Owner Change-8.85%
Ins Owners4.64%
Ins Owner Change-0.25%
Market Cap22.26B
Analysts52.86
Price Target8109 (6.37%)
Short Float %3.13%
Short Ratio4.36
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)1
Avg EPS beat(2)-1.23%
Min EPS beat(2)-11.49%
Max EPS beat(2)9.02%
EPS beat(4)1
Avg EPS beat(4)-1.31%
Min EPS beat(4)-11.49%
Max EPS beat(4)9.02%
EPS beat(8)4
Avg EPS beat(8)3.37%
EPS beat(12)6
Avg EPS beat(12)5.39%
EPS beat(16)8
Avg EPS beat(16)5.07%
Revenue beat(2)1
Avg Revenue beat(2)1.31%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)2.69%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)2.69%
Revenue beat(8)3
Avg Revenue beat(8)-1.54%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)9
Avg Revenue beat(16)0.29%
PT rev (1m)0%
PT rev (3m)-12.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 16.87 | ||
| P/S | 2.07 | ||
| P/FCF | 15.8 | ||
| P/OCF | 15.5 | ||
| P/B | 5.63 | ||
| P/tB | 5.7 | ||
| EV/EBITDA | 10 |
EPS(TTM)485.95
EY6.37%
EPS(NY)451.84
Fwd EY5.93%
FCF(TTM)482.36
FCFY6.33%
OCF(TTM)491.71
OCFY6.45%
SpS3680.82
BVpS1354.34
TBVpS1337.58
PEG (NY)N/A
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.62% | ||
| ROE | 40.14% | ||
| ROCE | 42.65% | ||
| ROIC | 34.56% | ||
| ROICexc | 63.35% | ||
| ROICexgc | 150.3% | ||
| OM | 19.31% | ||
| PM (TTM) | 14.77% | ||
| GM | 25.94% | ||
| FCFM | 13.1% |
ROA(3y)26.99%
ROA(5y)23.55%
ROE(3y)41.88%
ROE(5y)39.17%
ROIC(3y)35.26%
ROIC(5y)30.98%
ROICexc(3y)80.35%
ROICexc(5y)71.75%
ROICexgc(3y)160.89%
ROICexgc(5y)143.73%
ROCE(3y)43.52%
ROCE(5y)38.23%
ROICexcg growth 3Y0.62%
ROICexcg growth 5Y4.88%
ROICexc growth 3Y0.16%
ROICexc growth 5Y7.77%
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-Score5
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 138.01% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 70.51 | ||
| Cash Conversion | 68.53% | ||
| Profit Quality | 88.74% | ||
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 12.85 |
F-Score5
WACC8.73%
ROIC/WACC3.96
Cap/Depr(3y)137.26%
Cap/Depr(5y)115.35%
Cap/Sales(3y)0.23%
Cap/Sales(5y)0.22%
Profit Quality(3y)93.27%
Profit Quality(5y)95.94%
High Growth Momentum
Growth
EPS 1Y (TTM)1.29%
EPS 3Y16.48%
EPS 5Y18.06%
EPS Q2Q%-18.54%
EPS Next Y-16.88%
EPS Next 2Y-5.65%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue 1Y (TTM)9.1%
Revenue growth 3Y6.03%
Revenue growth 5Y7.56%
Sales Q2Q%2.81%
Revenue Next Year-5.11%
Revenue Next 2Y-2.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.15%
EBIT growth 3Y9.24%
EBIT growth 5Y15.32%
EBIT Next Year-20.41%
EBIT Next 3Y-2.31%
EBIT Next 5YN/A
FCF growth 1Y-24.25%
FCF growth 3Y3.18%
FCF growth 5Y9.78%
OCF growth 1Y-23.48%
OCF growth 3Y3.42%
OCF growth 5Y9.67%