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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVR has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years NVR always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 25.62%, NVR belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
NVR's Return On Equity of 40.14% is amongst the best of the industry. NVR outperforms 96.88% of its industry peers.
With an excellent Return On Invested Capital value of 34.56%, NVR belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVR is significantly above the industry average of 11.72%.
| 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
The Profit Margin of NVR (14.77%) is better than 92.19% of its industry peers.
In the last couple of years the Profit Margin of NVR has grown nicely.
NVR has a better Operating Margin (19.31%) than 92.19% 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.
NVR has less shares outstanding than it did 5 years ago.
NVR has a worse debt/assets ratio than last year.
2.2 Solvency
NVR has an Altman-Z score of 12.44. This indicates that NVR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVR (12.44) is better than 98.44% of its industry peers.
NVR has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
NVR has a Debt to FCF ratio of 0.65. This is amongst the best in the industry. NVR outperforms 82.81% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 12.44 |
ROIC/WACC3.84
WACC9.01%
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.
With a decent Current ratio value of 3.28, NVR is doing good in the industry, outperforming 62.50% of the companies in the same industry.
NVR has a Quick Ratio of 1.69. 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 1.69, NVR is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.29% over the past year.
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
NVR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.43% yearly.
The Revenue is expected to decrease by -2.52% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.64, 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 (26.25), we can say NVR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.75, NVR is valued correctly.
NVR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, NVR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
NVR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NVR is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.75 | ||
| EV/EBITDA | 9.27 |
4.3 Compensation for Growth
NVR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-5.65%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
NVR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7115.93
+18.29 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.42%
Inst Owner Change-8.82%
Ins Owners4.56%
Ins Owner Change-0.27%
Market Cap20.78B
Analysts52.86
Price Target8109 (13.96%)
Short Float %3.32%
Short Ratio3.85
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)-12.64%
PT rev (3m)-12.64%
EPS NQ rev (1m)-12.98%
EPS NQ rev (3m)-12.9%
EPS NY rev (1m)-16.66%
EPS NY rev (3m)-17.07%
Revenue NQ rev (1m)-6.6%
Revenue NQ rev (3m)-6.6%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-7.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 15.75 | ||
| P/S | 1.93 | ||
| P/FCF | 14.75 | ||
| P/OCF | 14.47 | ||
| P/B | 5.25 | ||
| P/tB | 5.32 | ||
| EV/EBITDA | 9.27 |
EPS(TTM)485.95
EY6.83%
EPS(NY)451.84
Fwd EY6.35%
FCF(TTM)482.36
FCFY6.78%
OCF(TTM)491.71
OCFY6.91%
SpS3680.82
BVpS1354.34
TBVpS1337.58
PEG (NY)N/A
PEG (5Y)0.81
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 | 12.44 |
F-Score5
WACC9.01%
ROIC/WACC3.84
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%