NYSE:NVR

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 26.4% below its fair value

Earnings are forecast to grow 4.07% per year

Earnings grew by 10.2% over the past year

Risk Analysis

No risks detected for NVR from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid 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

Stable Share Price: NVR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

NVR

-2.6%

US Consumer Durables

-4.2%

US Market


1 Year Return

51.5%

NVR

25.1%

US Consumer Durables

14.0%

US Market

Return vs Industry: NVR exceeded the US Consumer Durables industry which returned 25.1% over the past year.

Return vs Market: NVR exceeded the US Market which returned 14% over the past year.


Shareholder returns

NVRIndustryMarket
7 Day0.7%-2.6%-4.2%
30 Day0.1%-1.1%-1.8%
90 Day4.9%4.3%2.6%
1 Year51.5%51.5%26.8%25.1%16.3%14.0%
3 Year106.1%106.1%28.7%23.0%43.2%34.0%
5 Year201.9%201.9%36.4%27.5%65.9%47.6%

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?

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NVR ($3988.41) is trading below our estimate of fair value ($5417.02)

Significantly Below Fair Value: NVR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NVR is poor value based on its PE Ratio (16.5x) compared to the Consumer Durables industry average (13.3x).

PE vs Market: NVR is good value based on its PE Ratio (16.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NVR is poor value based on its PEG Ratio (4.1x)


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 (1.5x).


Next Steps

Future Growth

How is NVR forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVR's forecast earnings growth (4.1% per year) is above the savings rate (1.7%).

Earnings vs Market: NVR's earnings (4.1% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: NVR's earnings are forecast to grow, but not significantly.

Revenue vs Market: NVR's revenue (4.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NVR's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVR's Return on Equity is forecast to be high in 3 years time (34.1%)


Next Steps

Past Performance

How has NVR performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVR has high quality earnings.

Growing Profit Margin: NVR's current net profit margins (11.8%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: NVR's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: NVR's earnings growth over the past year (10.2%) is below its 5-year average (22.9% per year).

Earnings vs Industry: NVR earnings growth over the past year (10.2%) exceeded the Consumer Durables industry 5.5%.


Return on Equity

High ROE: NVR's Return on Equity (37.5%) is considered high.


Next Steps

Financial Health

How is NVR's financial position?


Financial Position Analysis

Short Term Liabilities: NVR's short term assets ($3.0B) exceed its short term liabilities ($628.4M).

Long Term Liabilities: NVR's short term assets ($3.0B) exceed its long term liabilities ($840.2M).


Debt to Equity History and Analysis

Debt Level: NVR's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: NVR's debt to equity ratio has reduced from 51.8% to 25.6% over the past 5 years.

Debt Coverage: NVR's debt is well covered by operating cash flow (144.8%).

Interest Coverage: NVR's interest payments on its debt are well covered by EBIT (43.2x 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 5.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Paul Saville (63yo)

14.6yrs

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 ($USD39.13M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Saville
President & CEO14.6yrsUS$39.13m0.38% $55.4m
Daniel Malzahn
Senior VP7yrsUS$12.67m0.11% $15.8m
Jeffrey Martchek
President of Homebuilding Operations4.1yrsUS$11.47m0.13% $19.5m
Eugene Bredow
President of NVR Mortgage1.1yrsUS$10.44m0.027% $3.9m
Paul Praylo
Senior VP & COO0yrsno data0.012% $1.7m
Matthew Kelpy
VP, Chief Accounting Officer & Controller2.1yrsno data0.00092% $134.9k
Curt McKay
Vice President of Business Planning & Investor Relations0yrsno datano data
James Sack
VP, General Counsel & Secretary0yrsno datano data
Gary Brown
Senior Vice President of Human Resources0yrsno datano data

4.1yrs

Average Tenure

49yo

Average Age

Experienced Management: NVR's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dwight Schar
Chairman of the Board26.4yrsUS$17.74m1.09% $159.5m
Manuel Johnson
Independent Director26.4yrsUS$788.58k0.016% $2.4m
Thomas Eckert
Independent Director8.2yrsUS$784.70k0.030% $4.4m
William Moran
Director26.4yrsUS$764.88k0.71% $104.0m
Alfred Festa
Independent Director11.2yrsUS$780.62k0.022% $3.3m
David Preiser
Independent Lead Director0yrsUS$792.57k0.0065% $953.4k
Charles Andrews
Independent Director11.8yrsUS$772.75k0.027% $4.0m
Melquiades Martinez
Independent Director7.2yrsUS$772.75k0.0052% $761.3k
Eddie Grier
Independent Director6.8yrsUS$772.75k0.0048% $698.2k
W. Rosier
Independent Director11.2yrsUS$775.95k0.069% $10.1m

11.2yrs

Average Tenure

70.5yo

Average Age

Experienced Board: NVR's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NVR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$14.668b
  • Shares outstanding: 3.68m
  • 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
N1VR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 50 REPR 1 COMBRBRLJan 2020

Biography

NVR, Inc. operates as a homebuilder in the United States. The company operates in two segments, Homebuilding and Mortgage Banking. It primarily constructs and sells single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers; brokers title insurance; and performs title searches in connection with mortgage loan closings. The company was founded in 1980 and is headquartered in Reston, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:42
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.