NVR (NVR) AI Stock Analysis

• Market Cap: $21.34B
• Dividend Yield: N/A
• Average Volume (3M): 19.50K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.37
• Revenue Growth: 3.61%
• EPS Growth: -6.94%
• Country: US
• Employees: 7,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 112.33
• Shares Outstanding: 2,839,432
• 10 Day Avg. Volume: 16,432
• 30 Day Avg. Volume: 19,495
• PEG Ratio: 1.51
• Price to Book (P/B): 6.04
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 18.91
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 9.67
• Enterprise Value/Ebitda: 12.27
• 1Y Price Target: $8,655.50
• Price Target Upside: 13.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 422.44
• Revenue Forecast (FY): $10.11B

• Rating: 61 Neutral
• Price Target: $7,577.00 ▼(-0.32% Downside)

NVR's overall score is driven by strong financial performance and a reasonable valuation, but technical indicators suggest bearish momentum. The lack of earnings call insights and corporate events leaves some uncertainty about future strategic direction.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to invest in growth opportunities.

Cash Flow Generation

Strong cash flow generation supports ongoing operations and strategic investments, enhancing long-term financial health and shareholder value.

Revenue Beat

Exceeding revenue expectations indicates strong market demand and effective sales strategies, reinforcing the company's competitive position.

Negative Factors

Decline in New Orders

A significant decline in new orders suggests potential challenges in demand, which could impact future revenue and growth prospects.

Rising Cancellation Rate

An increasing cancellation rate may indicate customer dissatisfaction or market volatility, potentially affecting future sales and profitability.

Decreased Backlog

A reduced backlog can signal weakening demand and may lead to lower future revenue, challenging the company's growth trajectory.

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 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 Financial Statement Overview

Summary

NVR demonstrates strong profitability with a solid balance sheet, low leverage, and high return on equity. Despite a recent revenue decline, the company maintains robust margins and cash flow generation, positioning it well for future stability.

Income Statement

NVR's income statement shows a strong profitability profile with a net profit margin of 13.9% TTM, although slightly down from 15.95% in the previous year. The gross profit margin is healthy at 23.59% TTM. However, the company experienced a revenue decline of 2.2% TTM, indicating potential challenges in maintaining growth. Despite this, EBIT and EBITDA margins remain robust at 18.37% and 18.53% TTM, respectively, reflecting efficient cost management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.26 TTM, indicating conservative leverage. Return on equity is impressive at 51.77% TTM, showcasing strong profitability relative to shareholder equity. The equity ratio stands at 65.71%, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 6.88% TTM, recovering from a decline in the previous period. The operating cash flow to net income ratio is 1.27 TTM, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, demonstrating effective conversion of earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.31B	10.54B	9.53B	10.54B	8.96B	7.55B
Gross Profit	2.43B	2.69B	2.48B	2.88B	2.20B	1.61B
EBITDA	1.92B	2.16B	1.97B	2.31B	1.66B	1.17B
Net Income	1.43B	1.68B	1.59B	1.73B	1.24B	901.25M
Balance Sheet
Total Assets	6.04B	6.38B	6.60B	5.66B	5.83B	5.78B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.66B	3.22B	2.57B	2.64B	2.81B
Total Debt	1.03B	1.02B	1.01B	1.01B	1.59B	1.59B
Total Liabilities	2.07B	2.17B	2.24B	2.15B	2.83B	2.67B
Stockholders Equity	3.97B	4.21B	4.36B	3.51B	3.00B	3.10B
Cash Flow
Free Cash Flow	1.29B	1.35B	1.47B	1.85B	1.22B	909.15M
Operating Cash Flow	1.32B	1.37B	1.50B	1.87B	1.24B	925.27M
Investing Cash Flow	-64.13M	-26.55M	-24.10M	-27.43M	-18.18M	-3.93M
Financing Cash Flow	-1.80B	-1.90B	-832.97M	-1.91B	-1.40B	727.64M

NVR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7601.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 7601.1 is above the 20-day moving average (MA) of 7305.60, above the 50-day MA of 7549.49, and above the 200-day MA of 7502.60, indicating a bullish trend. The MACD of 3.73 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 85.53 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
TOL	78 Outperform	$13.48B	10.28	17.73%	0.70%	3.26%	-6.40%
PHM	70 Outperform	$24.79B	9.79	21.57%	0.77%	1.76%	-4.24%
TMHC	70 Neutral	$6.16B	7.58	14.31%	―	6.98%	9.74%
DHI	66 Neutral	$45.96B	13.60	14.48%	1.04%	-6.93%	-19.41%
LEN	64 Neutral	$32.94B	12.86	10.63%	1.54%	-4.69%	-32.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVR	61 Neutral	$21.34B	16.50	34.80%	―	3.61%	-6.94%

NVR Corporate Events

NVR Appoints George R. Oliver to Board

On October 1, 2025, NVR, Inc. appointed George R. Oliver to its Board of Directors as an independent director. Mr. Oliver, who has a notable background with leadership roles at Johnson Controls International plc and Tyco International Ltd., will serve on the Nominating and Corporate Governance Committee. His appointment is expected to bring valuable experience to NVR, potentially impacting its governance positively.

The most recent analyst rating on (NVR) stock is a Hold with a $8680.00 price target. To see the full list of analyst forecasts on NVR stock, see the NVR Stock Forecast page.