NVR (NVR) AI Stock Analysis

• Market Cap: $22.29B
• Dividend Yield: N/A
• Average Volume (3M): 21.16K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.56
• Revenue Growth: 8.81%
• EPS Growth: 1.79%
• Country: US
• Employees: 7,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Residential Construction
• EPS (TTM): 94.83
• Shares Outstanding: 2,923,831
• 10 Day Avg. Volume: 27,059
• 30 Day Avg. Volume: 21,161
• PEG Ratio: -3.12
• Price to Book (P/B): 5.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.83
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: 2.34
• 1Y Price Target: $7,700.00
• Price Target Upside: 1.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $8,241.00 ▲(8.10%Upside)

NVR's strong financial performance and robust operational efficiency are the primary drivers of its high score. The technical indicators present a neutral outlook, while the valuation reflects a fair market price. The absence of dividend yield slightly impacts the attractiveness for dividend-focused investors.

Positive Factors

Financial Performance

NVR reported 4Q24 EPS that was significantly ahead of forecast and consensus, showcasing strong financial performance.

Gross Margin

Despite higher costs, NVR's gross margin remained strong and average order price increased, driven by product mix.

Share Repurchase

NVR repurchased $564M in shares during 4Q, bettering the $400M expectation.

Negative Factors

Community Count

NVR saw a 3% drop in average community count to continual frustration.

Orders Decline

NVR's orders declined and were below forecast, with underperformance noted in the Southeast due to increased inventory levels.

Revenue Growth Outlook

2025 revenue growth outlook has been slowed down due to lower absorption and community count, leading to a reduced EPS forecast.

NVR Business Overview & Revenue Model

Company Description

NVR, Inc. operates as a homebuilder in the United States. The company operates in two segments, Homebuilding and Mortgage Banking. It engages in the construction and sale of 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, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.

How the Company Makes Money

NVR makes money primarily through its homebuilding operations, which involve purchasing finished lots at competitive prices, constructing homes, and selling them to homebuyers. The company maintains a lean and efficient operational model, often entering into purchase agreements for land rather than owning large land inventories, thereby reducing risk. Revenue is generated from the sale of homes, with additional income derived from offering mortgage banking services through NVR Mortgage. This subsidiary provides various mortgage products, including conventional, FHA, and VA loans, earning interest and fees. Furthermore, the company's strategic focus on select geographic markets and efficient supply chain management contribute to its profitability.

NVR Financial Statement Overview

Summary

NVR exhibits strong financial health across its operations, balance sheet, and cash flow. Solid profit margins and strong returns on equity highlight operational efficiency, while conservative leverage and robust cash flow management suggest financial stability. However, minor declines in revenue growth and stockholder equity warrant close monitoring.

Income Statement

The company demonstrates strong financial performance with a high gross profit margin of 24.18% and a solid net profit margin of 15.11% in TTM. However, the revenue growth rate is slightly negative at -0.43%, indicating a slight decline in revenue over the past year. Despite this, the EBIT margin of 17.77% and EBITDA margin of 19.95% are impressive, reflecting robust operational efficiency in the TTM.

Balance Sheet

NVR maintains a healthy balance sheet with a low debt-to-equity ratio of 0.26, indicating conservative leverage. The return on equity is strong at 40.12%, showcasing effective utilization of shareholder funds. An equity ratio of 63.84% further underscores a solid financial structure, though slight declines in stockholders' equity suggest attention to capital management is needed.

Cash Flow

The cash flow position is strong, with a free cash flow to net income ratio of 0.89, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio stands at 0.91, reflecting stable cash flow from operations. Despite a modest decline in free cash flow growth rate of 4.90% year-over-year, the overall cash position remains robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.50B	10.54B	9.53B	10.54B	8.96B	7.55B
Gross Profit	2.54B	2.69B	2.48B	2.88B	2.20B	1.61B
EBITDA	2.09B	2.16B	1.97B	2.31B	1.66B	1.17B
Net Income	1.59B	1.68B	1.59B	1.73B	1.24B	901.25M
Balance Sheet
Total Assets	6.20B	6.38B	6.60B	5.66B	5.83B	5.78B
Cash, Cash Equivalents and Short-Term Investments	2.29B	2.61B	3.16B	2.52B	2.57B	2.78B
Total Debt	1.03B	1.02B	1.01B	1.01B	1.59B	1.59B
Total Liabilities	2.24B	2.17B	2.24B	2.15B	2.83B	2.67B
Stockholders Equity	3.95B	4.21B	4.36B	3.51B	3.00B	3.10B
Cash Flow
Free Cash Flow	1.41B	1.35B	1.47B	1.85B	1.22B	909.15M
Operating Cash Flow	1.44B	1.37B	1.50B	1.87B	1.24B	925.27M
Investing Cash Flow	-37.55M	-26.55M	-24.10M	-27.43M	-18.18M	-3.93M
Financing Cash Flow	-2.04B	-1.90B	-832.97M	-1.91B	-1.40B	727.64M

NVR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7623.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVR, the sentiment is Positive. The current price of 7623.24 is above the 20-day moving average (MA) of 7300.99, above the 50-day MA of 7206.49, and below the 200-day MA of 8060.22, indicating a neutral trend. The MACD of 110.62 indicates Negative momentum. The RSI at 60.79 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVR.

NVR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHI	81 Outperform	$40.52B	9.98	17.83%	1.21%	-4.71%	-10.19%
PHM	80 Outperform	$21.92B	7.71	25.52%	0.80%	8.86%	13.60%
TOL	78 Outperform	$11.56B	8.74	18.09%	0.85%	1.59%	-8.04%
TMHC	78 Outperform	$6.37B	7.38	15.97%	―	12.19%	23.15%
NVR	76 Outperform	$22.29B	15.69	38.25%	―	8.81%	1.79%
LEN	72 Outperform	$28.38B	9.10	13.04%	1.82%	-1.26%	-17.78%
Sector *	64 Neutral	kr11.54B	16.57	10.84%	9.89%	2.66%	5.01%

NVR Corporate Events

NVR Appoints Michael J. DeVito to Board

On July 1, 2025, NVR, Inc. appointed Michael J. DeVito to its Board of Directors as an independent director. Mr. DeVito, who previously served as CEO of Freddie Mac and held senior management roles at Wells Fargo, will also join the Compensation Committee. His appointment and stock option grant align with the company’s standard practices for non-employee directors, potentially strengthening NVR’s strategic direction and governance.

The most recent analyst rating on (NVR) stock is a Hold with a $8875.00 price target. To see the full list of analyst forecasts on NVR stock, see the NVR Stock Forecast page.

NVR Holds Annual Shareholders Meeting on May 6

On May 6, 2025, NVR, Inc. held its Annual Meeting of Shareholders where several key matters were voted upon. All directors were elected for one-year terms, KPMG LLP was ratified as the independent auditor for 2025, and the compensation of named executive officers was approved in a non-binding advisory vote. However, a shareholder proposal to allow shareholders the right to call a special meeting was not approved.