NVR Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Residential Construction
NVR, Inc. (NVR) is a homebuilder in the United States. The Company is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. To serve customers of its homebuilding operations, NVR also operates a mortgage banking and title services business. It conducts its homebuilding activities directly. Its mortgage banking operations are operated primarily through a wholly owned subsidiary, NVR Mortgage Finance, Inc. (NVRM). Its homebuilding operations include the construction and sale of single-family detached homes, townhomes and condominium buildings under four trade names: Ryan Homes, NVHomes, Fox Ridge Homes and Rymarc Homes. The Ryan Homes, Fox Ridge Homes, and Rymarc Homes products are marketed primarily to first-time homeowners and first-time move-up buyers. The Ryan Homes product was sold in 25 metropolitan areas as of December 31, 2011. On December 31, 2012, the Company acquired all the assets of Heartland Homes Inc.
Did you know?
Profit margin stands at 13.3%.
Current Price
$6663.14
-0.02%GoodMoat Value
$9878.15
48.3% undervaluedProfile
Valuation (TTM)
Market Cap$18.92B
P/E14.12
EV$17.64B
P/B4.90
Shares Out2.84M
P/Sales1.87
Revenue$10.09B
EV/EBITDA9.92
NVR Inc (NVR) Stock Analysis
GoodMoat Analysis
NVR is a high-quality homebuilder with a unique, capital-light operating model that generates exceptional returns on equity. Its valuation appears favourable, trading at a significant discount to its estimated intrinsic value, despite a cyclical downturn in revenue.
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NVR Inc. operates in the residential construction sector, building homes under its Ryan Homes, NVHomes, and Heartland Homes brands. Unlike most homebuilders, NVR does not engage in speculative land development; instead, it purchases finished lots through option contracts, which dramatically reduces its capital intensity and balance sheet risk. This unique model is the cornerstone of its competitive moat. Applying the GoodMoat framework, this strategy creates high switching costs via complex local land-use agreements and a significant scale privilege in its core Mid-Atlantic and Midwest markets, where it has deep, long-standing relationships with developers. Its capital-light approach also drives superior quality metrics, including an exceptional ROE of 34.7% and a strong operating margin of 17.6%, far exceeding typical industry returns. The company maintains a conservative balance sheet with a low debt-to-equity ratio of 0.27. While current revenue growth is negative at -5.0% YoY, reflecting the housing cycle, the underlying business model remains robust. On valuation, the stock trades at a P/E of 13.9 and offers a free cash flow yield of 5.9%. The provided GoodMoat Target of $9,878.15 suggests a margin of safety of approximately 50% from the current price of $6,577.49, which falls into the 'Deeply Undervalued' band per the framework's DCF analysis thresholds. This indicates the price is favourable relative to the estimated intrinsic value of this high-return business.
Market Cap$18.92B
Current Price$6663.14
P/E Ratio14.12
Forward P/E—
PEG Ratio-0.99
EPS$436.55
Book Value$1361.14
P/B Ratio4.90
NVR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.4% FCF growth (CAGR)
Cash vs Debt
Net Cash: 904M
Revenue
7.2B
FY19
7.3B
FY20
8.7B
FY21
10.3B
FY22
9.3B
FY23
10.3B
FY24
10.1B
FY25
Net Income
879M
FY19
901M
FY20
1.2B
FY21
1.7B
FY22
1.6B
FY23
1.7B
FY24
1.3B
FY25
NVR 52-Week Range
$6369.38
$8543.00
50-Day MA: $7211.97200-Day MA: $7550.98
Did you know?
Price sits at 14% of its 52-week range.
NVR Inc (NVR) Financial Summary
NVR Inc (NVR) is a Consumer Cyclical company in the Residential Construction industry, listed on NYSE. The stock currently trades at $6663.14 with a market capitalization of $18.92B.
Key valuation metrics include a P/E ratio of 14.12, price-to-book ratio of 4.90, and EPS of $436.55. The company reports a profit margin of 13.3% and return on equity of 34.7%.
NVR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $18.92B |
| P/E Ratio | 14.12 |
| EPS | $436.55 |
| P/B Ratio | 4.90 |
| P/S Ratio | 1.87 |
| EV/EBITDA | 9.92 |
| Profit Margin | 13.3% |
| Return on Equity | 34.7% |
| Debt/Equity | 0.27 |
NVR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.22B | $878.54M |
| FY20 | $7.33B | $901.25M |
| FY21 | $8.70B | $1.24B |
| FY22 | $10.33B | $1.73B |
| FY23 | $9.31B | $1.59B |
| FY24 | $10.29B | $1.68B |
| FY25 | $10.09B | $1.34B |
NVR Inc (NVR) Valuation
Based on GoodMoat's DCF model, NVR Inc has a fair value estimate of $9878.15. At the current price of $6663.14, the stock appears 32.5% undervalued relative to our intrinsic value estimate.
NVR Quality Indicators
NVR Inc maintains a profit margin of 13.3% and an operating margin of 17.6%. Return on equity stands at 34.7%. Debt-to-equity ratio is 0.27.
About NVR Inc
NVR, Inc. (NVR) is a homebuilder in the United States. The Company is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. To serve customers of its homebuilding operations, NVR also operates a mortgage banking and title services business. It conducts its homebuilding activities directly. Its mortgage banking operations are operated primarily through a wholly owned subsidiary, NVR Mortgage Finance, Inc. (NVRM). Its homebuilding operations include the construction and sale of single-family detached homes, townhomes and condominium buildings under four trade names: Ryan Homes, NVHomes, Fox Ridge Homes and Rymarc Homes. The Ryan Homes, Fox Ridge Homes, and Rymarc Homes products are marketed primarily to first-time homeowners and first-time move-up buyers. The Ryan Homes product was sold in 25 metropolitan areas as of December 31, 2011. On December 31, 2012, the Company acquired all the assets of Heartland Homes Inc.
NVR Free Cash Flow
NVR Inc generated $1.10B in trailing twelve-month free cash flow, representing an FCF yield of 5.80%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
NVR Shares Outstanding
NVR Inc has 0.00 billion shares outstanding at a share price of $6663.14, giving it a market capitalization of $18.92B.
NVR Recent Insider Trades
Recent insider transactions at NVR Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Ross Susan Williamson | SELL | 200 | $1.58M |
| Kelpy Matthew B. (VP, Chief Accounting Officer) | SELL | 500 | $4.05M |
| Ross Susan Williamson | SELL | 200 | $1.62M |