NVR Inc Stock Analysis, Valuation (NYSE:NVR)

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$2811.5 $26.05 (0.92%) NVR stock closing price Sep 25, 2017 (Closing)
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NVR Inc
Updated on : Sep 25, 2017
previous close
NVR 2811.2 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Residential-Commercial
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
12.8%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
596.8M
Debt/Equity Ratio:
 0.39
Compared to the industry
Cash Flow
Operating cash flow:
$69.4M
Net Income:
$147.9M
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NVR PS :
1.8
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
36.7%
Return on Equity:
37.6%
Free Cash Flow Margin:
4.3%
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NVR Inc Stock Analysis

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View NVR Inc stock analysis video. This is our analyst opinion covering the buy and sell arguments for NVR stock.

NVR, Inc. Stock Rating 3.7/5

Our NVR Inc stock opinion is based on fundamentals of the company. This NVR Inc stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy NVR stock?

  • The TTM operating margin was good at 12.8% for NVR Inc.
  • Net margins came in at average 8.7% for NVR Inc over the last twelve months.
  • With a debt/equity ratio of  0.39, NVR Inc is comparatively less leveraged than its peers in the Construction sector.
  • NVR Inc generates a high return on invested capital of 36.7%.
  • NVR Inc has a good Return On Equity (ROE) of 37.6%.

Should you sell NVR stock?

  • The company has an operating cash flow which is 0.5 times the net income. This is not a healthy sign.
  • The company is trading at a price to sales multiple of 1.8, which is overvalued in comparison to the Building-Residential-Commercial industry average multiple of 0.9.

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