NVR NVR
NVR, Inc. is one of the largest residential homebuilders in the United States, operating under the Ryan Homes, NVHomes, and Heartland Homes brands, with a low-land-inventory business model that allows it to generate high return on capital. NVR has solid financial health (score 7.48) with net cash and operating margins of 13.89%, but its growth is negative (revenue -10.9%, earnings -22.6%) due to a weak housing market from high mortgage rates. Its valuation is moderate (P/E 16.37) and its quality is high (ROE 31.54%), making it a quality company with short-term cyclical challenges.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
NVR, Inc. is one of the largest residential homebuilders in the United States, operating under the Ryan Homes, NVHomes, and Heartland Homes brands, with a low-land-inventory business model that allows it to generate high return on capital. NVR has solid financial health (score 7.48) with net cash and operating margins of 13.89%, but its growth is negative (revenue -10.9%, earnings -22.6%) due to a weak housing market from high mortgage rates. Its valuation is moderate (P/E 16.37) and its quality is high (ROE 31.54%), making it a quality company with short-term cyclical challenges.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.5 |
| Quality / Moat | 7.5 |
| Valuation | 6.0 |
| Growth | 0.9 |
| Dividend | 1.5 |
| Momentum | 3.0 |
| Risk & Context | 7.3 |
OVERALL SCORE: 5.5/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and elevated mortgage rates are depressing housing demand, a key factor for NVR. However, its low land inventory model and net cash balance sheet give it a competitive advantage over other builders, partially mitigating the impact.
News considered in the analysis
- Mortgage Rates Are Keeping Buyers on the Sidelines. When They Finally Drop, Here Are 2 Homebuilder Stocks I'm Dying to Buy — Los altos tipos hipotecarios están frenando la demanda de vivienda, lo que se refleja en la caída de ingresos y beneficios de NVR.
- NVR (NVR) Has Slid This Year, Is The Pullback A Real Opportunity? — Artículo de análisis sin información nueva; el retroceso ya está reflejado en el momentum negativo.
- 1 Safe-and-Steady Stock for Long-Term Investors and 2 We Avoid — Listículo genérico sin información específica sobre NVR.
- Is Lennar Stock Really On Sale? — Noticia sobre un competidor directo, pero sin impacto directo en los fundamentales de NVR.
- What Happens To Lennar Stock If Its Home Sales Keep Slowing? — Análisis de un competidor; no aporta información nueva sobre NVR.
Verdict: Hold; NVR's quality and balance sheet are solid, but wait for mortgage rates to drop to see an improvement in growth.
Main risk: The main risk is the persistence of high interest rates and mortgage rates, which continue to dampen housing demand and could prolong the decline in revenue and earnings.
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