NVR, Inc. (NVR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

NVR, Inc.

Toll Brothers, Inc.

PulteGroup, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

Lennar Corp.

Meritage Homes Corp.

KB Home

Tri Pointe Homes, Inc.

Why is NVR, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 40.24%

Healthy long term growth as Operating profit has grown by an annual rate 13.78%
Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 1,238.19 MM
ROCE(HY) Lowest at 38.1%
RAW MATERIAL COST(Y) Grown by 8.92% (YoY)

With ROE of 38.90%, it has a fair valuation with a 35.93 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.12%, its profits have fallen by -5.7% ; the PEG ratio of the company is 92.4

Below par performance in long term as well as near term

Along with generating -15.12% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NVR, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NVR, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NVR, Inc.

-11.32%

-0.02

27.42%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.51%

EBIT Growth (5y)

9.48%

EBIT to Interest (avg)

45.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

1.98

Tax Ratio

22.45%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

95.55%

ROCE (avg)

75.03%

ROE (avg)

40.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

33.70

EV to EBIT

89.33

EV to EBITDA

87.84

EV to Capital Employed

45.86

EV to Sales

12.79

PEG Ratio

Dividend Yield

ROCE (Latest)

51.34%

ROE (Latest)

33.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.21 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,121.32 MM

ROCE(HY)

Lowest at 33.18%

RAW MATERIAL COST(Y)

Grown by 13.13% (YoY

CASH AND EQV(HY)

Lowest at USD 3,980.49 MM

Here's what is working for NVR, Inc.

Inventory Turnover Ratio

Highest at 4.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at USD 6.94 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for NVR, Inc.

Operating Cash Flow

Lowest at USD 1,121.32 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 3,980.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income