NVR (NVR) AI Stock Analysis

• Market Cap: $21.92B
• Dividend Yield: N/A
• Average Volume (3M): 21.37K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.54
• Revenue Growth: 5.87%
• EPS Growth: -1.74%
• Country: US
• Employees: 7,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 108.54
• Shares Outstanding: 2,869,801
• 10 Day Avg. Volume: 26,189
• 30 Day Avg. Volume: 21,371
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 8.66
• Enterprise Value/Ebitda: 10.90
• 1Y Price Target: $8,250.00
• Price Target Upside: 8.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: $8,389.00 ▲(9.82% Upside)

NVR's strong financial health and reasonable valuation are offset by technical indicators suggesting bearish momentum and recent revenue declines. The company's strategic focus on the South-East region's growth could be a key driver for future performance.

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 Business Overview & Revenue Model

Company Description

NVR, Inc. is a leading residential homebuilder based in the United States, primarily focused on the construction and sale of single-family homes, townhomes, and condominiums. The company operates in various markets across the country, primarily under the brand names Ryan Homes, NVHomes, and Heartland Homes. NVR also provides mortgage banking services through its subsidiary, NVR Mortgage, enhancing its offerings to homebuyers and contributing to its overall business model.

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 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

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	10.54B	10.54B	9.53B	10.54B	8.96B	7.55B
Gross Profit	2.53B	2.69B	2.48B	2.88B	2.20B	1.61B
EBITDA	2.01B	2.16B	1.97B	2.31B	1.66B	1.17B
Net Income	1.52B	1.68B	1.59B	1.73B	1.24B	901.25M
Balance Sheet
Total Assets	5.94B	6.38B	6.60B	5.66B	5.83B	5.78B
Cash, Cash Equivalents and Short-Term Investments	1.83B	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	2.09B	2.17B	2.24B	2.15B	2.83B	2.67B
Stockholders Equity	3.85B	4.21B	4.36B	3.51B	3.00B	3.10B
Cash Flow
Free Cash Flow	1.21B	1.35B	1.47B	1.85B	1.22B	909.15M
Operating Cash Flow	1.24B	1.37B	1.50B	1.87B	1.24B	925.27M
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	-1.40B	727.64M

NVR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7639.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVR, the sentiment is Negative. The current price of 7639.06 is below the 20-day moving average (MA) of 7862.26, below the 50-day MA of 8057.59, and above the 200-day MA of 7594.51, indicating a neutral trend. The MACD of -134.12 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVR.

NVR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOL	76 Outperform	$13.08B	9.97	17.73%	0.72%	3.26%	-6.40%
PHM	71 Outperform	$24.55B	9.30	23.05%	0.71%	5.04%	2.07%
DHI	70 Outperform	$45.82B	12.32	16.27%	1.04%	-7.31%	-16.37%
TMHC	70 Outperform	$6.11B	7.13	15.59%	―	13.77%	28.57%
NVR	64 Neutral	$21.92B	16.12	38.10%	―	5.87%	-1.74%
LEN	64 Neutral	$31.82B	12.43	10.63%	1.59%	-4.69%	-32.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.