NVR INC (NVR) Stock Fundamental Analysis
NYSE:NVR - New York Stock Exchange, Inc. - US62944T1051 - Common Stock - Currency: USD
NVR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making NVR a very profitable company, without any liquidiy or solvency issues. 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.
In the past year NVR had a positive cash flow from operations.
NVR had positive earnings in each of the past 5 years.
Each year in the past 5 years NVR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NVR (25.62%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 40.14%, NVR belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 34.56%, NVR belongs to the top of the industry, outperforming 100.00% 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 10.08%.
| 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 93.65% of its industry peers.
NVR's Profit Margin has improved in the last couple of years.
NVR's Operating Margin of 19.31% is amongst the best of the industry. NVR outperforms 93.65% of its industry peers.
NVR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.94%, NVR perfoms like the industry average, outperforming 52.38% 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 | 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
The debt/assets ratio for NVR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.72 indicates that NVR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.72, NVR belongs to the best of the industry, outperforming 98.41% 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.
With an excellent Debt to FCF ratio value of 0.65, NVR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 12.72 |
ROIC/WACC4.01
WACC8.62%
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 63.49% 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.
NVR's Quick ratio of 1.69 is fine compared to the rest of the industry. NVR outperforms 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for NVR have decreased by -2.09% in the last year.
Measured over the past years, NVR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.06% on average per year.
NVR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.87%.
Measured over the past years, NVR shows a small growth in Revenue. The Revenue has been growing by 7.56% on average per year.
EPS 1Y (TTM)-2.09%
EPS 3Y16.48%
EPS 5Y18.06%
EPS Q2Q%-10.07%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y6.03%
Revenue growth 5Y7.56%
Sales Q2Q%0.01%
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 -2.02% 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-3.29%
Revenue Next 2Y-2.02%
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 16.38, the valuation of NVR can be described as correct.
NVR's Price/Earnings is on the same level as the industry average.
NVR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
With a Price/Forward Earnings ratio of 17.18, NVR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVR is on the same level as its industry peers.
NVR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 17.18 |
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.
Based on the Price/Free Cash Flow ratio, NVR is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
The excellent profitability rating of NVR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
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 |
7760.68
+211.19 (+2.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners89.29%
Inst Owner Change-4.19%
Ins Owners4.64%
Ins Owner Change-0.25%
Market Cap22.35B
Analysts52.86
Price Target8109 (4.49%)
Short Float %3.17%
Short Ratio4.25
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)0%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-13.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.66%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-6.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 17.18 | ||
| P/S | 2.08 | ||
| P/FCF | 15.87 | ||
| P/OCF | 15.57 | ||
| P/B | 5.65 | ||
| P/tB | 5.72 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)473.8
EY6.11%
EPS(NY)451.84
Fwd EY5.82%
FCF(TTM)489.06
FCFY6.3%
OCF(TTM)498.54
OCFY6.42%
SpS3731.94
BVpS1373.15
TBVpS1356.16
PEG (NY)N/A
PEG (5Y)0.91
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 | 12.72 |
F-Score5
WACC8.62%
ROIC/WACC4.01
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)-2.09%
EPS 3Y16.48%
EPS 5Y18.06%
EPS Q2Q%-10.07%
EPS Next Y-16.88%
EPS Next 2Y-5.65%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue 1Y (TTM)5.87%
Revenue growth 3Y6.03%
Revenue growth 5Y7.56%
Sales Q2Q%0.01%
Revenue Next Year-3.29%
Revenue Next 2Y-2.02%
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%