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NVR Inc (NVR)
NYSE:NVR
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NVR (NVR) AI Stock Analysis

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NVR

NVR

(NYSE:NVR)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
$8,680.00
▲(7.22% Upside)
NVR's overall stock score is driven by its strong financial performance, particularly its profitability and balance sheet strength. Technical analysis suggests potential short-term weakness, but oversold conditions could offer a buying opportunity. The valuation is reasonable, though the lack of a dividend yield may deter income-focused investors.
Positive Factors
Business Model Strength
The 'build-to-order' model aligns production with demand, minimizing inventory costs and enhancing operational efficiency, contributing to long-term profitability.
Balance Sheet Health
A low debt-to-equity ratio indicates prudent financial leverage, ensuring financial stability and flexibility to invest in growth opportunities.
Profitability
Stable profit margins reflect strong pricing power and cost management, supporting sustained profitability and competitive positioning.
Negative Factors
Revenue Decline
A significant revenue decline could indicate challenges in maintaining market share or demand, potentially impacting long-term growth prospects.
Negative Free Cash Flow Growth
Negative free cash flow growth may signal cash flow challenges, limiting the company's ability to fund new projects or return capital to shareholders.
EPS Growth Decline
Declining EPS growth suggests potential profitability pressures, which could affect investor confidence and the company's ability to reinvest in its business.

NVR (NVR) vs. SPDR S&P 500 ETF (SPY)

NVR Business Overview & Revenue Model

Company DescriptionNVR, 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 MoneyNVR generates revenue primarily through the construction and sale of homes. The company operates on a 'build-to-order' model, where homes are built based on customer specifications, which helps reduce inventory costs and aligns production with market demand. Key revenue streams include home sales, which account for the majority of its earnings, as well as revenue from its mortgage banking segment, which provides financing solutions to homebuyers. NVR's partnership with various suppliers and subcontractors facilitates its building operations, while its established brand reputation helps drive sales. Additionally, the company benefits from favorable market conditions, including low mortgage rates and high demand for housing, which contribute to its overall profitability.

NVR Key Performance Indicators (KPIs)

Any
Any
New Orders by Geography
New Orders by Geography
Chart Insights
Data provided by:Main Street Data

NVR Financial Statement Overview

Summary
NVR exhibits strong financial health with impressive profit margins and return on equity, despite slight declines in revenue growth and stockholder equity. The company maintains conservative leverage and robust cash flow management.
Income Statement
72
Positive
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
78
Positive
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
68
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.54B10.54B9.53B10.54B8.96B7.55B
Gross Profit2.53B2.69B2.48B2.88B2.20B1.61B
EBITDA2.01B2.16B1.97B2.31B1.66B1.17B
Net Income1.52B1.68B1.59B1.73B1.24B901.25M
Balance Sheet
Total Assets5.94B6.38B6.60B5.66B5.83B5.78B
Cash, Cash Equivalents and Short-Term Investments1.83B2.66B3.22B2.57B2.64B2.81B
Total Debt1.03B1.02B1.01B1.01B1.59B1.59B
Total Liabilities2.09B2.17B2.24B2.15B2.83B2.67B
Stockholders Equity3.85B4.21B4.36B3.51B3.00B3.10B
Cash Flow
Free Cash Flow1.21B1.35B1.47B1.85B1.22B909.15M
Operating Cash Flow1.24B1.37B1.50B1.87B1.24B925.27M
Investing Cash Flow-65.67M-26.55M-24.10M-27.43M-18.18M-3.93M
Financing Cash Flow-1.87B-1.90B-832.97M-1.91B-1.40B727.64M

NVR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8095.14
Price Trends
50DMA
8049.34
Positive
100DMA
7672.60
Positive
200DMA
7637.05
Positive
Market Momentum
MACD
-19.47
Positive
RSI
49.46
Neutral
STOCH
20.95
Neutral
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 8095.14 is below the 20-day moving average (MA) of 8212.39, above the 50-day MA of 8049.34, and above the 200-day MA of 7637.05, indicating a neutral trend. The MACD of -19.47 indicates Positive momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 20.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVR.

NVR Risk Analysis

NVR disclosed 21 risk factors in its most recent earnings report. NVR reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NVR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$49.85B13.4016.48%0.96%-7.31%-16.37%
78
Outperform
$25.88B9.8021.81%0.67%5.04%2.07%
78
Outperform
$13.23B10.0816.99%0.70%3.26%-6.40%
73
Outperform
$6.57B7.6714.94%13.77%28.57%
69
Neutral
$32.86B12.6114.42%1.55%-4.65%-32.82%
66
Neutral
$23.05B16.9538.10%5.87%-1.74%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVR
NVR
8,095.14
-1,797.16
-18.17%
DHI
DR Horton
169.83
-20.76
-10.89%
LEN
Lennar
127.68
-50.49
-28.34%
PHM
PulteGroup
133.14
-10.35
-7.21%
TOL
Toll Brothers
138.28
-15.22
-9.92%
TMHC
Taylor Morrison
66.44
-3.90
-5.54%

NVR Corporate Events

Executive/Board Changes
NVR Appoints Michael J. DeVito to Board
Neutral
Jul 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025