How Does This Homebuilder Operate?
NVR is a homebuilder focused on delivering new homes to buyers in the US. It operates a housing business that sells newly built homes, with additional activity tied to the home purchase process. The company’s results are shaped by how effectively it converts its operating model into profits and shareholder returns. With a relatively small share count, per-share outcomes matter more than headline scale.
Are Margins And Returns Holding Steady?
FundamentalsFor 2025, reported in USD, revenue was USD 10.3 billion and net income was USD 1.34 billion, alongside a 1.9% year-over-year revenue decline. Profitability over the trailing period shows a 23.48% gross margin flowing through to a 16.53% operating margin and a 12.48% net margin, while ROE stands at 32.66%.
Balance-sheet liquidity is notable, with USD 1.92 billion of cash reported. Depreciation and amortization of USD 24.5 million and capital spending of USD 24.5 million were nearly identical in the latest year, keeping investment intensity low in absolute dollars.
Is The Market Missing The Value?
DCF / MultiplesAt USD 6,479.39 per share, the stock trades below the DCF-implied fair value range. That setup is paired with a 14.12 trailing P/E and a 10.04 EV/EBITDA, which align more with a business priced for ordinary economics than one posting a 32.66% ROE.
Returns May Be Underappreciated
TakeawayThe pricing looks like it discounts the return profile too heavily. High returns need to persist without margin erosion. Cash discipline needs to stay tight as growth stays uneven. If profitability slips, the valuation tension disappears quickly. If returns hold, the current price looks like a misread.