NVR Inc Stock Analysis, Valuation (NYSE:NVR)
View the NVR Inc stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for NVR stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
NVR, Inc. Stock Rating 3.6/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for NVR stock analysis. NVR Inc valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. NVR Inc stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy NVR stock?
- NVR Inc's revenue growth came in at 19.4% in 2018-03.
- The company saw a significant growth in revenue with a 5 year CAGR of 14.2.
- NVR Inc's average operating margin of 14.24 was exceptional.
- LTM Net margins were good at 9.4% for NVR Inc.
- With a debt/equity ratio of 0.41, NVR Inc is comparatively less leveraged than its peers in the -sectordesc- sector.
- NVR Inc generates a high return on invested capital of 42.1.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for NVR Inc at 39.2.
- The company has a good Free Cash Flow (FCF) margin of 5.
Should you sell NVR stock?
- Cash flow from operations is 0.4697 times net income which is a negative signal.
- The company is trading at a price to sales multiple of 1.8, which is overvalued in comparison to the Construction sector average multiple of 0.9.
Amigobulls NVR Inc stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of NVR stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
NVR Inc revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of NVR technical analysis to check whether the fundamental story is reflected in the market sentiment.