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NVR Inc (NVR)
NYSE:NVR

NVR (NVR) AI Stock Analysis

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NVR

(NYSE:NVR)

Rating:76Outperform
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 (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 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
85
Very 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
80
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
83
Very 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 Revenue10.50B10.54B9.53B10.54B8.96B7.55B
Gross Profit2.54B2.69B2.48B2.88B2.20B1.61B
EBITDA2.09B2.16B1.97B2.31B1.66B1.17B
Net Income1.59B1.68B1.59B1.73B1.24B901.25M
Balance Sheet
Total Assets6.20B6.38B6.60B5.66B5.83B5.78B
Cash, Cash Equivalents and Short-Term Investments2.29B2.61B3.16B2.52B2.57B2.78B
Total Debt1.03B1.02B1.01B1.01B1.59B1.59B
Total Liabilities2.24B2.17B2.24B2.15B2.83B2.67B
Stockholders Equity3.95B4.21B4.36B3.51B3.00B3.10B
Cash Flow
Free Cash Flow1.41B1.35B1.47B1.85B1.22B909.15M
Operating Cash Flow1.44B1.37B1.50B1.87B1.24B925.27M
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-1.40B727.64M

NVR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7623.24
Price Trends
50DMA
7206.49
Positive
100DMA
7224.03
Positive
200DMA
8060.22
Negative
Market Momentum
MACD
110.62
Negative
RSI
60.79
Neutral
STOCH
84.77
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 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DHDHI
81
Outperform
$40.52B9.9817.83%1.21%-4.71%-10.19%
PHPHM
80
Outperform
$21.92B7.7125.52%0.80%8.86%13.60%
TOTOL
78
Outperform
$11.56B8.7418.09%0.85%1.59%-8.04%
78
Outperform
$6.37B7.3815.97%12.19%23.15%
NVNVR
76
Outperform
$22.29B15.6938.25%8.81%1.79%
LELEN
72
Outperform
$28.38B9.1013.04%1.82%-1.26%-17.78%
64
Neutral
kr11.54B16.5710.84%9.89%2.66%5.01%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVR
NVR
7,623.24
169.18
2.27%
DHI
DR Horton
131.90
-3.33
-2.46%
LEN
Lennar
110.12
-24.84
-18.41%
PHM
PulteGroup
109.36
4.90
4.69%
TOL
Toll Brothers
117.79
7.71
7.00%
TMHC
Taylor Morrison
63.45
9.62
17.87%

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.

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.

Shareholder Meetings
NVR Holds Annual Shareholders Meeting on May 6
Neutral
May 7, 2025

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.

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: Jun 27, 2025