NVR Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>NVR</div>
NVR -- USA Stock  

USD 4,400  148.59  3.50%

In general, we focus on analyzing NVR (NYSE:NVR) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build NVR Inc daily price indicators and compare them against related drivers. Let's first try to sum up why NVR investors are seeking stability amid unprecedented economic uncertainty.
Published 2 days ago
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Is NVR (NYSE:NVR) gaining more confidence from retail investors?
This firm's average rating is Hold from 3 analysts. Macroaxis provides trade recommendations on NVR Inc to complement and cross-verify current analyst consensus on NVR. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. About 88.0% of the company shares are owned by institutional investors. NVR Inc recorded earning per share (EPS) of 208.46. The entity had not issued any dividends in recent years.
The successful prediction of NVR stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as NVR Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of NVR based on NVR hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to NVR's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NVR's related companies.

Use Technical Analysis to project NVR expected Price

NVR technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of NVR technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of NVR trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How NVR utilizes its cash?

To perform a cash flow analysis of NVR, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash NVR is receiving and how much cash it distributes out in a given period. The NVR cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. NVR Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. NVR reported last year Net Cash Flow from Operations of 866.53 Million

Breaking down the case for NVR

The company reported the last year's revenue of 7.14 B. Total Income to common stockholders was 819.7 M with profit before taxes, overhead, and interest of 1.5 B.
 2017 2018 2019 2020 (projected)
Accounts Payable294.8 M288.57 M306.97 M259.77 M
Inventories1.25 B1.25 B1.35 B1.1 B

Cost of Revenue Breakdown

NVR Cost of Revenue yearly trend continues to be relatively stable with very little volatility. Cost of Revenue is likely to drop to about 5.3 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. NVR Cost of Revenue is relatively stable at the moment as compared to the past year. NVR reported last year Cost of Revenue of 5.85 Billion
2013
2014
2015
2016
2017
2018
2019
2020
20133.42 Billion
20143.57 Billion
20154.12 Billion
20164.71 Billion
20174.99 Billion
20185.69 Billion
20195.85 Billion
20205.27 Billion

How will NVR retail investors react to the next fall?

The standard deviation is down to 11.27 as of today. NVR Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize NVR Inc independently to ensure intended market timing strategies are aligned with expectations about NVR volatility.

Our Bottom Line On NVR Inc

While many other companies in the residential construction industry are either recovering or due for a correction, NVR may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 18th of October 2020, we believe that at this point, NVR is overvalued with very low probability of distress within the next 2 years. Our final buy-or-sell advice on the enterprise is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of NVR Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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