Taking everything into account, NVR scores 6 out of 10 in our fundamental rating. NVR was compared to 60 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 is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years NVR has always 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 23.75% is amongst the best of the industry. NVR outperforms 100.00% of its industry peers.
The Return On Equity of NVR (36.14%) is better than 98.33% of its industry peers.
NVR's Return On Invested Capital of 31.48% is amongst the best of the industry. NVR outperforms 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 9.52%.

		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

With an excellent Profit Margin value of 13.54%, NVR belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
NVR's Profit Margin has improved in the last couple of years.
NVR's Operating Margin of 17.89% is amongst the best of the industry. NVR outperforms 93.33% of its industry peers.
NVR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.61%, NVR is in line with its industry, 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVR is creating value.
Compared to 1 year ago, NVR has less shares outstanding
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

NVR has an Altman-Z score of 13.39. This indicates that NVR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVR (13.39) is better than 96.67% of its industry peers.
The Debt to FCF ratio of NVR is 0.70, which is an excellent value as it means it would take NVR, only 0.70 years of fcf income to pay off all of its debts.
NVR has a better Debt to FCF ratio (0.70) than 76.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that NVR is not too dependend on debt financing.
The Debt to Equity ratio of NVR (0.23) is better than 61.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.23
Debt/FCF	0.7
Altman-Z	13.39

ROIC/WACC3.43

WACC9.17%

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.
The Current ratio of NVR (3.58) is better than 63.33% of its industry peers.
NVR has a Quick Ratio of 1.74. This is a normal value and indicates that NVR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NVR (1.74) is better than 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.58
Quick Ratio	1.74

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
The Revenue has been growing slightly by 2.93% in the past 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)-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

NVR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.26% yearly.
The Revenue is expected to decrease by -0.59% on average over the next years.

EPS Next Y-16.06%

EPS Next 2Y-10.1%

EPS Next 3Y-2.26%

EPS Next 5YN/A

Revenue Next Year-1.98%

Revenue Next 2Y-4.07%

Revenue Next 3Y-0.59%

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 decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.76, which indicates a correct valuation of NVR.
The rest of the industry has a similar Price/Earnings ratio as NVR.
The average S&P500 Price/Earnings ratio is at 28.32. NVR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.62 indicates a rather expensive valuation of NVR.
The rest of the industry has a similar Price/Forward Earnings ratio as NVR.
When comparing the Price/Forward Earnings ratio of NVR to the average of the S&P500 Index (25.57), we can say NVR is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	16.76
Fwd PE	18.62

4.2 Price Multiples

NVR's Enterprise Value to EBITDA is on the same level as the industry average.
NVR's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	16.78
EV/EBITDA	10.76

4.3 Compensation for Growth

NVR has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as NVR's earnings are expected to decrease with -2.26% in the coming years.