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...NVR Gross Profit
NVR Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NVR previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NVR Gross Profit growth over the last 10 years. Please check NVR's
gross profit and other
fundamental indicators for more details.
Another angle On 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 Payable | 294.8 M | 288.57 M | 306.97 M | 259.77 M | Inventories | 1.25 B | 1.25 B | 1.35 B | 1.1 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 | 3.42 Billion |
| 2014 | 3.57 Billion |
| 2015 | 4.12 Billion |
| 2016 | 4.71 Billion |
| 2017 | 4.99 Billion |
| 2018 | 5.69 Billion |
| 2019 | 5.85 Billion |
| 2020 | 5.27 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.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of NVR Inc. Please refer to our
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