- NVR reported third-quarter earnings per share (EPS) of $112.33, beating the estimated EPS of $108.51, but down from $130.50 in the same quarter last year.
- Home building revenue reached $2.56 billion, representing a decline of 4.4% compared to the previous year.
- The number of net orders saw a significant drop of 16% year-over-year.
- The gross margin decreased to 21% from 23.4% the previous year.
- The backlog of orders was down 19%, with 9,165 homes compared to the estimate of 9,600.
- There was an increase in the cancellation rate to 19.4%, up from 14.5% year-over-year.
- The company operated in an average of 450 active communities, marking a growth of 6.6% from last year and surpassing the estimated 427.72.
- New home settlements were at 5,639, a decrease of 4.6% from the previous year, but exceeded the estimation of 5,354.
- The average price of new orders increased by 3.1% to $0.46 million, slightly above the estimate of $0.45 million.
- The backlog average price was $0.48 million, aligning closely with the estimated $0.47 million.
- Analyst ratings include 1 buy, 5 holds, and 1 sell.
Nvr Inc on Smartkarma
Analyst coverage of Nvr Inc on Smartkarma reveals insightful research from top independent analysts. According to Ξ±SK‘s report titled “Primer: Nvr Inc (NVR US) – Sep 2025″, the company’s unique land-light business model sets it apart in the industry. NVR’s strategy of utilizing lot purchase agreements instead of direct land ownership helps mitigate capital-intensive and cyclical risks associated with land development. This approach leads to impressive returns on equity, averaging between 20-40% in the long term, and contributes to a robust and flexible balance sheet compared to competitors.
The report also highlights NVR’s consistent financial strength and shareholder returns. With a conservative financial profile and minimal debt, the company is well-positioned to weather economic downturns effectively. NVR’s focus on generating strong free cash flow allows for strategic investments in share repurchases, driving substantial long-term growth in earnings per share. However, analysts caution that NVR’s performance is highly sensitive to macroeconomic factors, such as the health of the housing market and broader economy, as outlined in the research from Smartkarma.
A look at Nvr Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores evaluation, NVR Inc has a promising long-term outlook. The company received a high score in resilience and momentum, indicating its ability to withstand challenges and maintain a strong growth trajectory. With a solid score in growth as well, NVR Inc is positioned to continue expanding its presence in the market over time. Although the value and dividend scores are not as high, the overall positive ratings in key factors suggest a favorable outlook for NVR Inc in the future.
NVR Inc, known for building and marketing homes while also engaging in mortgage banking activities, has shown resilience and momentum according to the Smartkarma Smart Scores. Specializing in constructing single-family homes, townhomes, and condos under various brand names like Ryan Homes and NVHomes, the company also offers mortgage services to its customers. With a notable focus on growth and strong performance in key areas, NVR Inc appears well-positioned for sustained success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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