NVR INC (NVR)
US62944T1051 - Common Stock
Overall NVR gets a fundamental rating of 7 out of 10. We evaluated NVR against 64 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 is not valued too expensively and it also shows a decent 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.
NVR had positive earnings in each of the past 5 years.
NVR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 25.57%, NVR belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
NVR's Return On Equity of 39.63% is amongst the best of the industry. NVR outperforms 95.16% of its industry peers.
With an excellent Return On Invested Capital value of 32.40%, NVR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NVR had an Average Return On Invested Capital over the past 3 years of 33.20%. This is significantly above the industry average of 10.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.57% | ||
| ROE | 39.63% | ||
| ROIC | 32.4% |
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
With an excellent Profit Margin value of 16.18%, NVR belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
In the last couple of years the Profit Margin of NVR has grown nicely.
NVR has a better Operating Margin (20.29%) than 93.55% of its industry peers.
NVR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.05%, NVR perfoms like the industry average, outperforming 56.45% 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 | 20.29% | ||
| PM (TTM) | 16.18% | ||
| GM | 27.05% |
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.
Compared to 1 year ago, NVR has about the same amount of shares outstanding.
NVR has less shares outstanding than it did 5 years ago.
NVR has a better debt/assets ratio than last year.
2.2 Solvency
NVR has an Altman-Z score of 13.64. This indicates that NVR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.64, NVR belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
The Debt to FCF ratio of NVR is 0.61, which is an excellent value as it means it would take NVR, only 0.61 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.61, NVR belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
NVR has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.22, NVR is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 13.64 |
ROIC/WACC3.52
WACC9.21%
2.3 Liquidity
NVR has a Current Ratio of 3.49. This indicates that NVR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NVR (3.49) is better than 64.52% of its industry peers.
A Quick Ratio of 1.84 indicates that NVR should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.84, NVR belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.49 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.95% over the past year.
NVR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.04% yearly.
NVR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
The Revenue has been growing slightly by 6.14% on average over the past years.
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.
NVR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y8.97%
EPS Next 2Y7.46%
EPS Next 3Y8.34%
EPS Next 5YN/A
Revenue Next Year8.72%
Revenue Next 2Y7.76%
Revenue Next 3Y6.53%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NVR is valuated rather expensively with a Price/Earnings ratio of 18.29.
NVR's Price/Earnings ratio is in line with the industry average.
NVR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.72, NVR is valued correctly.
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 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.72 |
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 the industry average as 64.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 12.54 |
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.
The excellent profitability rating of NVR may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)0.96
EPS Next 2Y7.46%
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 (11/21/2024, 8:04:00 PM)
After market: 8946.53 0 (0%)8946.53
-53.47 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
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Market Cap27.38B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.29 | ||
| Fwd PE | 16.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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PEG (NY)2.04
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.57% | ||
| ROE | 39.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.29% | ||
| PM (TTM) | 16.18% | ||
| GM | 27.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.49 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.95%
EPS 3Y26.38%
EPS 5Y
EPS Q2Q%
EPS Next Y8.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.42%
Revenue growth 3Y8.59%
Revenue growth 5Y
Sales Q2Q%
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Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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