What are the investment strengths of NVR Inc (NVR)?

Asset-light model (lot options vs land ownership) drives ROIC of 27.9% TTM - 3x industry median 9.0%. Generates superior returns through cycles without land write-down risk. Operating margin 17.0% TTM vs industry median 10.0% with minimal goodwill (42M, 1% of equity) - clean balance sheet with real earnings quality.

What are the investment risks for NVR Inc (NVR)?

P/E 16.5x vs industry median 10.1x - 63% premium prices in operational excellence. Any margin compression from housing slowdown hits valuation hard. Inventory up 39M TTM while industry destocking (median -62M). Regional concentration risk if Mid-Atlantic/DC markets weaken.

NVR Inc

NVR

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NVR Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-12

Snapshot

ROE of 34.8% TTM vs industry median 10.5% - 3.3x advantage from asset-light lot option model with minimal land ownership[Return on Equity]
FCF of 1.3B TTM (12.3% margin) with only 26M capex - converts 98% of operating cash to free cash[Free Cash Flow]
Debt/equity 0.26 with 2.0B cash vs 1.0B total debt - net cash position rare for homebuilder[Debt to Equity]

Watch Triggers

Operating Margin: Falls below 14% — Would signal pricing power erosion; 17% margin is key differentiator vs peers
Change in Inventory: Increases >100M quarterly — Inventory build in declining market = margin risk; lot options should limit this
Free Cash Flow: Falls below 1.0B annual — Buyback capacity depends on FCF; below 1B limits capital return thesis

Bull Case

Asset-light model (lot options vs land ownership) drives ROIC of 27.9% TTM - 3x industry median 9.0%. Generates superior returns through cycles without land write-down risk.

ROICROEDebt to Equity

Operating margin 17.0% TTM vs industry median 10.0% with minimal goodwill (42M, 1% of equity) - clean balance sheet with real earnings quality.

Operating MarginGoodwillNet Margin

Bear Case

P/E 16.5x vs industry median 10.1x - 63% premium prices in operational excellence. Any margin compression from housing slowdown hits valuation hard.

P/E RatioP/S Ratio

Inventory up 39M TTM while industry destocking (median -62M). Regional concentration risk if Mid-Atlantic/DC markets weaken.

Change in InventoryInventory

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

62%

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Forward Thesis

Capital returns will accelerate as FCF exceeds reinvestment needs in normalized housing market

1-3yhigh

1.3B annual FCF with minimal capex requirements
No dividend - all cash available for buybacks
3.1M shares outstanding enables meaningful per-share impact

FCF margin 12.3% TTM vs industry median ~4%Zero dividend payout ratio (5yr and 7yr)EPS $454.82 on shrinking share count

Valuation Context

Caveats

Public Strategies Rankings

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NVR Fundamentals

Construction → Construction of Buildings

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$17.96B		—
Enterprise Value	$17.09B		—
P/E Ratio	14		—
Total Revenue - TTM	$10.34B	-1.9%	—
Earnings Per Share (diluted) - TTM	$436.55	-13.8%	—
Operating Margin - TTM	16.3%	-2.6%	—
Net Margin - TTM	13.0%	-3.0%	—
Free Cash Flow - TTM	$1.1B	-18.5%	—
Return on Common Equity - TTM	33.2%	-6.0%	—
Beta 5Y (Monthly)	unknown		—

NVR Dividend History

No dividends

NVR Stock Splits

No stock splits

NVR SEC Filings

Filing Date	Report Date	Report Type	Filing Link
02/11/26	12/31/25	10-K	0000906163-26-000018
11/05/25	09/30/25	10-Q	0000906163-25-000121
08/06/25	06/30/25	10-Q	0000906163-25-000089
05/05/25	03/31/25	10-Q	0000906163-25-000054
02/12/25	12/31/24	10-K	0000906163-25-000011
11/05/24	09/30/24	10-Q	0000906163-24-000123
08/06/24	06/30/24	10-Q	0000906163-24-000109
05/06/24	03/31/24	10-Q	0000906163-24-000071
02/14/24	12/31/23	10-K	0000906163-24-000033
11/03/23	09/30/23	10-Q	0000906163-23-000155
08/02/23	06/30/23	10-Q	0000906163-23-000108
05/02/23	03/31/23	10-Q	0000906163-23-000048
02/15/23	12/31/22	10-K	0000906163-23-000023
11/04/22	09/30/22	10-Q	0000906163-22-000104
08/03/22	06/30/22	10-Q	0000906163-22-000074
05/03/22	03/31/22	10-Q	0000906163-22-000030
02/16/22	12/31/21	10-K	0000906163-22-000008
11/02/21	09/30/21	10-Q	0000906163-21-000099
08/03/21	06/30/21	10-Q	0000906163-21-000084
05/04/21	03/31/21	10-Q	0000906163-21-000056
02/12/21	12/31/20	10-K	0000906163-21-000017
11/04/20	09/30/20	10-Q	0000906163-20-000090
08/03/20	06/30/20	10-Q	0000906163-20-000075
05/07/20	03/31/20	10-Q	0000906163-20-000054
02/19/20	12/31/19	10-K	0000906163-20-000026
11/01/19	09/30/19	10-Q	0000906163-19-000153
07/31/19	06/30/19	10-Q	0000906163-19-000116
05/01/19	03/31/19	10-Q	0000906163-19-000070
02/13/19	12/31/18	10-K	0000906163-19-000029
10/31/18	09/30/18	10-Q	0000906163-18-000123
07/30/18	06/30/18	10-Q	0000906163-18-000106
05/01/18	03/31/18	10-Q	0000906163-18-000026
02/14/18	12/31/17	10-K	0000906163-18-000007
10/30/17	09/30/17	10-Q	0000906163-17-000009
07/28/17	06/30/17	10-Q	0001564590-17-014370
04/28/17	03/31/17	10-Q	0001564590-17-007726
02/15/17	12/31/16	10-K	0001564590-17-001623
10/28/16	09/30/16	10-Q	0001564590-16-026452
07/28/16	06/30/16	10-Q	0001564590-16-021704
04/29/16	03/31/16	10-Q	0001564590-16-017128
02/17/16	12/31/15	10-K	0001564590-16-012809
11/06/15	09/30/15	10-Q	0001564590-15-009895
07/30/15	06/30/15	10-Q	0001564590-15-005833
05/01/15	03/31/15	10-Q	0001564590-15-003154
02/19/15	12/31/14	10-K	0001564590-15-000764
10/30/14	09/30/14	10-Q	0001193125-14-389808
08/01/14	06/30/14	10-Q	0001193125-14-291128
05/02/14	03/31/14	10-Q	0001193125-14-180134
02/20/14	12/31/13	10-K	0001193125-14-060606
11/01/13	09/30/13	10-Q	0001193125-13-422661
07/30/13	06/30/13	10-Q	0001193125-13-310039
04/29/13	03/31/13	10-Q	0001193125-13-180722
02/19/13	12/31/12	10-K	0001193125-13-065025
11/01/12	09/30/12	10-Q	0001193125-12-445784
07/27/12	06/30/12	10-Q	0001193125-12-319060
04/27/12	03/31/12	10-Q	0001193125-12-190645
02/22/12	12/31/11	10-K	0001193125-12-072956
10/28/11	09/30/11	10-Q	0001193125-11-286412
08/08/11	06/30/11	10-Q	0000950123-11-074182
05/03/11	03/31/11	10-Q	0000950123-11-043785
02/25/11	12/31/10	10-K	0000950123-11-018386
11/03/10	09/30/10	10-Q	0000950123-10-100067
08/02/10	06/30/10	10-Q	0000950123-10-071166
05/03/10	03/31/10	10-Q	0000950123-10-042506
02/26/10	12/31/09	10-K	0000950123-10-018033
11/03/09	09/30/09	10-Q	0000950123-09-056769
07/29/09	06/30/09	10-Q	0000950123-09-026998
05/11/09	03/31/09	10-Q	0000950133-09-001554
02/25/09	12/31/08	10-K	0000950133-09-000438
11/03/08	09/30/08	10-Q	0000950133-08-003531
08/01/08	06/30/08	10-Q	0000950133-08-002591
04/25/08	03/30/08	Unknown	--
02/22/08	12/31/07	10-K	0000950133-08-000733
11/01/07	09/30/07	10-Q	0000950133-07-004342
07/31/07	06/30/07	10-Q	0000950133-07-003138
05/04/07	03/30/07	Unknown	--
02/21/07	12/31/06	10-K	0000950133-07-000704
10/24/06	09/30/06	10-Q	0000950133-06-004536
07/24/06	06/30/06	10-Q	0000950133-06-003334
04/26/06	03/30/06	Unknown	--
02/23/06	12/31/05	5	0000906163-06-000008
11/03/05	09/30/05	10-Q	0001193125-05-215577
07/29/05	06/30/05	10-Q	0001193125-05-152574
05/05/05	03/30/05	Unknown	--
02/28/05	12/31/04	10-K	0001193125-05-038619
10/29/04	09/30/04	10-Q	0001193125-04-181635
07/28/04	06/30/04	10-Q	0001193125-04-126283
05/07/04	03/30/04	Unknown	--
02/17/04	12/31/03	10-K	0001193125-04-024751
10/28/03	09/30/03	10-Q	0001193125-03-067729
08/07/03	06/30/03	10-Q	0001193125-03-030865
05/15/03	03/30/03	Unknown	--
02/07/03	12/31/02	10-K	0000928385-03-000218
10/22/02	09/30/02	10-Q	0000928385-02-003376
07/24/02	06/30/02	10-Q	0000928385-02-002554
04/22/02	03/30/02	Unknown	--
02/08/02	12/31/01	10-K	0000928385-02-000316
10/18/01	09/30/01	10-Q	0000928385-01-502133
07/26/01	06/30/01	10-Q	0001021408-01-503927
04/30/01	03/30/01	Unknown	--
03/07/01	12/31/00	10-K	0000928385-01-000729
10/25/00	09/30/00	10-Q	0000928385-00-002873
07/26/00	06/30/00	10-Q	0000928385-00-002007
05/02/00	03/30/00	Unknown	--