NYSE:NVR

Stock Analysis Report

Executive Summary

NVR, Inc. operates as a homebuilder in the United States.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has NVR's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

NVR

0.7%

US Consumer Durables

1.3%

US Market


1 Year Return

62.1%

NVR

33.5%

US Consumer Durables

5.9%

US Market

Return vs Industry: NVR exceeded the US Consumer Durables industry which returned 33.5% over the past year.

Return vs Market: NVR exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

NVRIndustryMarket
7 Day-1.5%0.7%1.3%
30 Day-0.08%0.3%-1.9%
90 Day3.6%4.8%-1.8%
1 Year62.1%62.1%35.3%33.5%8.3%5.9%
3 Year128.7%128.7%50.0%45.4%45.6%36.2%
5 Year203.6%203.6%38.9%30.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is NVR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NVR undervalued compared to its fair value and its price relative to the market?

15.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NVR ($3621.82) is trading above our estimate of fair value ($2568.83)

Significantly Undervalued: NVR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NVR is poor value based on its PE Ratio (15.8x) compared to the Consumer Durables industry average (13.2x).

PE vs Market: NVR is good value based on its PE Ratio (15.8x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: NVR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NVR is overvalued based on its PB Ratio (6.2x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is NVR forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVR's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: NVR's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: NVR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NVR's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NVR's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NVR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NVR performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NVR's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: NVR's earnings growth over the past year (26%) exceeds its 5-year average (23.2% per year).

Earnings vs Industry: NVR earnings growth over the past year (26%) exceeded the Consumer Durables industry 13.5%.


Return on Equity

High ROE: NVR's Return on Equity (39%) is considered high.


Return on Assets

ROA vs Industry: NVR has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: NVR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is NVR's financial position?


Financial Position Analysis

Short Term Liabilities: NVR's short term assets ($2.8B) exceeds its short term liabilities ($647.1M)

Long Term Liabilities: NVR's short term assets (2.8B) exceeds its long term liabilities (836.7M)


Debt to Equity History and Analysis

Debt Level: NVR's debt to equity ratio (28.2%) is considered satisfactory

Reducing Debt: NVR's debt to equity ratio has reduced from 53.8% to 28.2% over the past 5 years.

Debt Coverage: NVR's debt is well covered by operating cash flow (143.2%).

Interest Coverage: NVR's interest payments on its debt are well covered by EBIT (42.6x coverage).


Balance Sheet

Inventory Level: NVR has a high level of physical assets or inventory.

Debt Coverage by Assets: NVR's debt is covered by short term assets (assets are 4.737400x debt).


Next Steps

Dividend

What is NVR's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NVR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NVR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NVR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NVR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NVR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of NVR's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Paul Saville (63yo)

14.3yrs

Tenure

US$39,134,164

Compensation

Mr. Paul C. Saville has been the Chief Executive Officer and President of NVR Inc. since July 1, 2005. Mr. Saville served as an Executive Vice President of Finance and Chief Financial Officer of NVR Inc. f ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD39.13M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: NVR's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

70.5yo

Average Age

Experienced Board: NVR's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$229,95021 May 19
Alexandra Jung
EntityIndividual
Shares70
Max PriceUS$3,285.00
SellUS$1,721,64216 May 19
David Preiser
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares520
Max PriceUS$3,310.85
SellUS$1,607,00003 May 19
David Preiser
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares500
Max PriceUS$3,214.00
SellUS$460,80029 Apr 19
David Preiser
EntityIndividual
Role
Lead Director
Independent Lead Director
Shares144
Max PriceUS$3,200.00
BuyUS$65,71721 Feb 19
Susan Ross
EntityIndividual
Shares25
Max PriceUS$2,628.67
BuyUS$66,71521 Feb 19
Matthew Kelpy
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Controller
Shares25
Max PriceUS$2,668.58
BuyUS$65,34214 Feb 19
Alexandra Jung
EntityIndividual
Shares25
Max PriceUS$2,613.68
BuyUS$141,57002 Nov 18
Melquiades Martinez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60
Max PriceUS$2,359.50

Ownership Breakdown


Management Team

  • Paul Saville (63yo)

    President & CEO

    • Tenure: 14.3yrs
    • Compensation: US$39.13m
  • James Sack

    VP, General Counsel & Secretary

    • Tenure: 0yrs
  • Paul Praylo (47yo)

    Senior VP & COO

    • Tenure: 0yrs
  • Matthew Kelpy (46yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 1.8yrs
  • Eugene Bredow (49yo)

    President of NVR Mortgage

    • Tenure: 0.8yrs
    • Compensation: US$10.44m
  • Dan Malzahn (49yo)

    Senior VP

    • Tenure: 6.7yrs
    • Compensation: US$12.67m
  • Jeffrey Martchek (53yo)

    President of Homebuilding Operations

    • Tenure: 3.8yrs
    • Compensation: US$11.47m
  • Gary Brown

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Curt McKay

    Vice President of Business Planning & Investor Relations

    • Tenure: 0yrs

Board Members

  • Dwight Schar (77yo)

    Chairman of the Board

    • Tenure: 26.1yrs
    • Compensation: US$17.74m
  • Manuel Johnson (70yo)

    Independent Director

    • Tenure: 26.1yrs
    • Compensation: US$788.58k
  • Tom Eckert (71yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$784.70k
  • William Moran (72yo)

    Director

    • Tenure: 26.1yrs
    • Compensation: US$764.88k
  • Fred Festa (59yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$780.62k
  • David Preiser (61yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: US$792.57k
  • C.E. Andrews (67yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$772.75k
  • Mel Martinez (72yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$772.75k
  • Ed Grier (64yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$772.75k
  • W. Rosier (71yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$775.95k

Company Information

NVR, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NVR, Inc.
  • Ticker: NVR
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$13.239b
  • Shares outstanding: 3.66m
  • Website: https://www.nvrinc.com

Number of Employees


Location

  • NVR, Inc.
  • Plaza America Tower I
  • Suite 500
  • Reston
  • Virginia
  • 20190
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVRNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1993
NVEDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1993
NVR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1993

Biography

NVR, Inc. operates as a homebuilder in the United States. It primarily constructs and sells single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland H ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.