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.

D.R. Horton, Inc.

PulteGroup, Inc.

Toll Brothers, Inc.

Lennar Corp.

NVR, Inc.

Taylor Morrison Home 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NVR, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NVR, Inc.

-23.54%

-0.02

27.42%

S&P 500

16.51%

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

92.40%

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

33.11

EV to EBIT

87.75

EV to EBITDA

86.29

EV to Capital Employed

45.05

EV to Sales

12.57

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

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,066.6 MM

NET SALES(HY)

At USD 4,131.87 MM has Grown at -15.53%

ROCE(HY)

Lowest at 31.54%

RAW MATERIAL COST(Y)

Grown by 10.81% (YoY

CASH AND EQV(HY)

Lowest at USD 2,926.95 MM

DEBT-EQUITY RATIO (HY)

Highest at -4.32 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.37 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 204.95 times

PRE-TAX PROFIT(Q)

Fallen at -28.63%

NET PROFIT(Q)

Fallen at -29.05%

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

Operating Cash Flow

Lowest at USD 1,066.6 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)

Net Sales

At USD 4,131.87 MM has Grown at -15.53%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Fallen at -28.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Fallen at -29.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 2,926.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -4.32 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.37 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 204.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.81% (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