NVR Investment Analysis Report & Stock Research, NVR, Inc.

NVR, Incorporated (NVR)

NVR Stock Report

2-Year Price History

View Larger NVR Chart
(8/14 6:40PM)
Open$612.03 Mkt Cap$3.6 Billion
High$621.33 52Wk High$639.80
Low$612.03 52Wk Low$310.69
Volume48,203 Avg Vol 10D70,100

Ockham’s Rating

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NVR Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at NVR through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.02x and 0.52x respectively.

Utilizing this range we can see that NVR’s current Price to Sales per share ratio of 0.75x is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the NVR shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.

NVR Cash Earnings

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company’s value, and currently NVR is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for NVR to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 15.19 and a 7.44 low over the same period.

Therefore, at the current price of $618.25 and a Price to Cash Earnings ratio of 46.84, NVR is significantly overvalued. This diminishes the attractiveness of NVR until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 313% is needed just to return to the historical cash earnings multiple.

NVR Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. As of the time of this report, our data provider does not have historical data for NVR. Therefore, we are not utilizing the dividends portion in our study. So, we do not know whether NVR currently pays a dividend at present or not, we have an "expected dividend" payment listed in key fundamentals but cannot varify it.

Peer Comparison


NVR, Inc. Industry Grouping

Company Ticker Market Cap (Ml) Latest
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding NVR) 14.36 4.91 » 21.44 1.48 0.49 » 2.79 12.37% 37.33%
*10 year range does not include current year values
Stericycle, Inc. SRCL $4.2 Billion $49.84 21.30 6.13 » 36.59 3.73 0.71 » 5.86 19.05% 16.86%
Martin Marietta Materials, Inc. MLM $3.8 Billion $86.39 12.72 5.13 » 17.03 1.52 0.74 » 3.19 4.38% 18.46%
MDU Resources Group, Inc. MDU $3.8 Billion $20.39 14.99 4.30 » 9.83 0.72 0.57 » 1.37 16.29% 13.94%
Foster Wheeler AG FWLT $3.7 Billion $29.37 7.32 1.67 » 27.83 0.46 0.01 » 2.38 12.98% 124.34%
NVR, Inc. NVR $3.6 Billion $618.25 46.84 2.16 » 33.88 0.75 0.16 » 1.21 0.08% 50.72%
The Valspar Corp. VAL $3.1 Billion $26.41 15.44 7.31 » 15.90 0.98 0.41 » 1.18 9.15% 13.04%

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The Latest Financial News
4:04:24 PM NVR $584.25 NVR, Inc.
25 days ago (07/22)
“…Keycorp, which started negative, wells fargo’s had a lot of trouble all throughout the day but it was down fractionally. Existing home sales out tomorrow but NVR a relatively small home building company announced amazing numbers. Revenues, margins, writedowns of land all improved. And the absorption rate for new orders in their communities also was up 2% year over year. …” – NVR on Closing Bell
3:45:32 PM NVR $591.88 NVR, Inc.
25 days ago (07/22)
“…They’re purchasing the stocks. >> locally. >> where do you think we’re going with homes? Existing home sales tomorrow. I know that it’s still very iffy, but you look at a company today, we hay small company I told you about, NVR, their numbers were right up across the board, much better than all the metrics. Top line, margins, the percentage of homes they’re selling in the communities with any hope here? …” – NVR on Closing Bell
3:03:58 PM NVR $588.00 NVR, Inc.
25 days ago (07/22)
“…As a result we have seen home building stocks outperforming in fact, generally home builders have been doing well in the last five or six days, outperforming even in this market. Look at NVR, up nicely here. 7%, 8% in names like lennar and kb homes. Bear in mind we’ll have existing another talking point there. Finally I just want to note there are smilstill some very …” – NVR on Closing Bell
1:09:47 PM NVR $588.06 NVR, Inc.
25 days ago (07/22)
“…Probably similar comments. You want something a lit more did you see the home builders? Government home price index better than expected. NVR came out with amazingly great numbers here. Their orders increased 2%. I have not seen that in a long, long time from the home builders. Rick, what stuck out in your …” – NVR on Power Lunch
6:57:31 PM NVR $499.08 NVR, Inc.
6/26/2009 6:57 PM
“…>>> NVR homes. A trucker and home builder. I would like to say there is always a bull market somewhere. And I promise to try and find it right here on "mad money." i’m jim cramer, see you next …” – NVR on Mad Money
6:12:55 PM NVR $499.03 NVR, Inc.
6/26/2009 6:12 PM
“…On the way down. We’re bad with trailing and stop they don’t work in cramerica. Stay wary of the headlines. Think long term and take a chance, pacr and NVR homes and stay with cramer. >>> miss out on some "mad money," now you can get cramer sent to your phone. …” – NVR on Mad Money
6:10:44 PM NVR $499.03 NVR, Inc.
6/26/2009 6:10 PM
“…Always look six months ahead. Foreclosure’s peaking, wells fargo benefiting enormously, two new names, NVR and pacr going think apple but the component health care coming back and a resurgence in natural gas come the winter. >>> mike in texas, mike? …” – NVR on Mad Money
6:08:19 PM NVR $499.03 NVR, Inc.
6/26/2009 6:08 PM
“…Everyone knows i’ve not been recommending any home builders for the whole cycle. For the last two years. It’s a real live one and i’d buy it next week. That winner is NVR homes. >> moo! >> nancy, victor, raleigh. NVR homes. It’s a $500 stock. So, please use limit orders. This company’s actually seeing not house price depreciation, not house price stabilization, but house price appreciation. …” – NVR on Mad Money
10:48:13 AM NVR $423.01 NVR, Inc.
3/31/2009 10:48 AM
“…And away the worst performers, down 5% today, 12% this week. Horton, toll brothers, puttee, NVR. Al could he yashtion the second best performer in the dow today, up 7%. It’s off the sale list at deutsch bank. Then you could call it talk is …” – NVR on Squawk On The Street
6:14:21 AM NVR $437.99 NVR, Inc.
1/27/2009 6:14 AM
“…Very reasonable and more of a v-shaped recovery than a u-shaped recovery. I think when we make recovery, it’s going to be clear. We’re not going to need the NVR to say it’s behind us. >> bob, we’re talking about the stimulus packages right now. We’re almost at $1 trillion. Why is the bond market not …” – NVR on Squawk Box
View All NVR, Inc. News

Key Fundamentals

NVR – NVR, Incorporated Fundamentals
Price (8/14 6:40PM) $618.25
Volume (8/14 6:40PM) 48,203
Last Close Price $611.00
10 Day Average Volume 70,100
13 Week Price Range $462.21 – $628.99
52 Week Price Range $310.69 – $639.80
LTM Revenue $3.0 Billion
Shares Outstanding (12/2008) 5.8 Million
Market Capitalization $3.6 Billion
Shares Held By Institutions 5.2 Million
Institutional Holders 258
% Shares Held By Institutions 89.30%
Earnings Per Share (EPS) $17.04
P/E Ratio 57.50
Book Value Per Share $266.56
Gross Margin 13.50%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.40
Fiscal Year Ends December

About NVR, Inc.

NVR, Incorporated is considered to operate in the Industrial Goods sector. They specifically operate in the Residential Construction business segment contained within the Materials & Construction industry.

The Company constructs and sells single-family detached homes, townhomes and condominium buildings.