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 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
NVR had positive earnings in the past year.
NVR had a positive operating cash flow in the past year.
Each year in the past 5 years NVR has been profitable.
Each year in the past 5 years NVR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 25.62%, NVR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NVR has a better Return On Equity (40.14%) than 98.44% of its industry peers.
With an excellent Return On Invested Capital value of 34.56%, 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 35.26%. This is significantly above the industry average of 10.35%.
| 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
Looking at the Profit Margin, with a value of 14.77%, NVR belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
NVR's Profit Margin has improved in the last couple of years.
NVR has a better Operating Margin (19.31%) than 93.75% of its industry peers.
NVR's Operating Margin has improved in the last couple of years.
The Gross Margin of NVR (25.94%) is comparable to the rest of the industry.
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
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
NVR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NVR is higher compared to a year ago.
2.2 Solvency
NVR has an Altman-Z score of 12.35. This indicates that NVR is financially healthy and has little risk of bankruptcy at the moment.
NVR has a Altman-Z score of 12.35. This is amongst the best in the industry. NVR outperforms 98.44% of its industry peers.
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.
The Debt to FCF ratio of NVR (0.65) is better than 85.94% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that NVR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, NVR is in line with its industry, outperforming 57.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 12.35 |
ROIC/WACC3.47
WACC9.95%
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.
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.
With a decent Quick ratio value of 1.69, NVR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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%.
NVR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.06% yearly.
NVR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.10%.
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.
NVR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.52% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.73, the valuation of NVR can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as NVR.
Compared to an average S&P500 Price/Earnings ratio of 26.35, NVR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.84, NVR is valued correctly.
64.06% of the companies in the same industry are cheaper than NVR, based on the Price/Forward Earnings ratio.
NVR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
NVR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVR indicates a somewhat cheap valuation: NVR is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
The excellent profitability rating of NVR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
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 |
7157.94
+178.27 (+2.55%)
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 Cap20.90B
Analysts52.86
Price Target8109 (13.29%)
Short Float %3.45%
Short Ratio4.84
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)-17.07%
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 | 14.73 | ||
| Fwd PE | 15.84 | ||
| P/S | 1.94 | ||
| P/FCF | 14.84 | ||
| P/OCF | 14.56 | ||
| P/B | 5.29 | ||
| P/tB | 5.35 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)485.95
EY6.79%
EPS(NY)451.84
Fwd EY6.31%
FCF(TTM)482.36
FCFY6.74%
OCF(TTM)491.71
OCFY6.87%
SpS3680.82
BVpS1354.34
TBVpS1337.58
PEG (NY)N/A
PEG (5Y)0.82
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 | 12.35 |
F-Score5
WACC9.95%
ROIC/WACC3.47
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%