Nvr Inc Stock Return On Equity

NVR Stock

USD 9,007 60.71 0.68%

NVR Inc fundamentals help investors to digest information that contributes to NVR's financial success or failures. It also enables traders to predict the movement of NVR Stock. The fundamental analysis module provides a way to measure NVR's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to NVR stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.36	0.41

As of 11/25/2024, Return On Equity is likely to grow to 0.41.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

NVR Inc Company Return On Equity Analysis

NVR's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current NVR Return On Equity

0.39

Most of NVR's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, NVR Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

NVR Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for NVR is extremely important. It helps to project a fair market value of NVR Stock properly, considering its historical fundamentals such as Return On Equity. Since NVR's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of NVR's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of NVR's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Accounts Payable	Net Receivables	Total Liab	Total Current Assets	Intangible Assets	Short Term Debt	Common Stock	Long Term Debt	Good Will	Treasury Stock	Property Plant Equipment	Current Deferred Revenue	Short Term Investments	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.98	-0.9	0.97	0.79	0.87	0.78	1.0	-0.28	0.25	0.67	0.7	-0.23	-0.92	0.9	0.7	-0.35	0.81	0.79	0.86	0.49	-0.62	0.9	0.93	0.91	-0.61
Total Stockholder Equity	0.98		-0.95	0.98	0.72	0.88	0.65	0.97	-0.18	0.18	0.76	0.54	-0.24	-0.89	0.93	0.64	-0.25	0.79	0.66	0.83	0.47	-0.71	0.86	0.9	0.88	-0.7
Net Debt	-0.9	-0.95		-0.89	-0.58	-0.74	-0.54	-0.89	0.14	-0.02	-0.78	-0.44	0.17	0.75	-0.89	-0.55	0.06	-0.8	-0.55	-0.74	-0.25	0.72	-0.83	-0.9	-0.88	0.71
Retained Earnings	0.97	0.98	-0.89		0.78	0.92	0.68	0.95	-0.12	0.25	0.73	0.55	-0.28	-0.95	0.94	0.7	-0.37	0.75	0.66	0.86	0.52	-0.67	0.82	0.86	0.84	-0.66
Accounts Payable	0.79	0.72	-0.58	0.78		0.72	0.91	0.81	-0.37	0.35	0.43	0.81	-0.18	-0.89	0.64	0.76	-0.54	0.78	0.83	0.93	0.64	-0.14	0.82	0.77	0.76	-0.12
Net Receivables	0.87	0.88	-0.74	0.92	0.72		0.57	0.84	-0.09	0.43	0.74	0.45	-0.48	-0.86	0.85	0.52	-0.44	0.64	0.56	0.79	0.63	-0.71	0.68	0.72	0.69	-0.69
Total Liab	0.78	0.65	-0.54	0.68	0.91	0.57		0.81	-0.47	0.29	0.25	0.97	-0.13	-0.79	0.56	0.77	-0.5	0.77	0.97	0.85	0.47	-0.05	0.86	0.8	0.82	-0.04
Total Current Assets	1.0	0.97	-0.89	0.95	0.81	0.84	0.81		-0.32	0.22	0.62	0.73	-0.22	-0.92	0.87	0.7	-0.34	0.82	0.82	0.87	0.5	-0.57	0.92	0.93	0.92	-0.56
Intangible Assets	-0.28	-0.18	0.14	-0.12	-0.37	-0.09	-0.47	-0.32		-0.1	0.09	-0.58	-0.37	0.17	0.09	0.03	0.19	-0.22	-0.55	-0.19	-0.39	-0.12	-0.37	-0.3	-0.27	-0.13
Short Term Debt	0.25	0.18	-0.02	0.25	0.35	0.43	0.29	0.22	-0.1		0.24	0.28	-0.14	-0.26	0.24	0.27	-0.34	0.02	0.31	0.2	0.25	-0.23	0.13	0.14	0.17	-0.21
Common Stock	0.67	0.76	-0.78	0.73	0.43	0.74	0.25	0.62	0.09	0.24		0.13	-0.18	-0.53	0.78	0.37	-0.15	0.52	0.27	0.56	0.21	-0.84	0.51	0.62	0.6	-0.84
Long Term Debt	0.7	0.54	-0.44	0.55	0.81	0.45	0.97	0.73	-0.58	0.28	0.13		-0.05	-0.67	0.43	0.69	-0.52	0.64	0.99	0.71	0.39	0.02	0.78	0.71	0.73	0.03
Good Will	-0.23	-0.24	0.17	-0.28	-0.18	-0.48	-0.13	-0.22	-0.37	-0.14	-0.18	-0.05		0.27	-0.3	-0.13	0.24	-0.29	-0.08	-0.32	-0.29	0.21	-0.16	-0.16	-0.16	0.21
Treasury Stock	-0.92	-0.89	0.75	-0.95	-0.89	-0.86	-0.79	-0.92	0.17	-0.26	-0.53	-0.67	0.27		-0.84	-0.78	0.48	-0.74	-0.74	-0.9	-0.6	0.43	-0.81	-0.8	-0.79	0.41
Property Plant Equipment	0.9	0.93	-0.89	0.94	0.64	0.85	0.56	0.87	0.09	0.24	0.78	0.43	-0.3	-0.84		0.64	-0.24	0.73	0.55	0.79	0.28	-0.75	0.78	0.84	0.84	-0.74
Current Deferred Revenue	0.7	0.64	-0.55	0.7	0.76	0.52	0.77	0.7	0.03	0.27	0.37	0.69	-0.13	-0.78	0.64		-0.37	0.59	0.71	0.73	0.22	-0.15	0.67	0.66	0.7	-0.14
Short Term Investments	-0.35	-0.25	0.06	-0.37	-0.54	-0.44	-0.5	-0.34	0.19	-0.34	-0.15	-0.52	0.24	0.48	-0.24	-0.37		-0.07	-0.53	-0.35	-0.34	0.05	-0.14	-0.12	-0.11	0.03
Net Tangible Assets	0.81	0.79	-0.8	0.75	0.78	0.64	0.77	0.82	-0.22	0.02	0.52	0.64	-0.29	-0.74	0.73	0.59	-0.07		0.69	0.92	0.42	-0.29	0.95	0.94	0.93	-0.28
Long Term Debt Total	0.79	0.66	-0.55	0.66	0.83	0.56	0.97	0.82	-0.55	0.31	0.27	0.99	-0.08	-0.74	0.55	0.71	-0.53	0.69		0.76	0.41	-0.14	0.83	0.78	0.8	-0.13
Capital Surpluse	0.86	0.83	-0.74	0.86	0.93	0.79	0.85	0.87	-0.19	0.2	0.56	0.71	-0.32	-0.9	0.79	0.73	-0.35	0.92	0.76		0.6	-0.31	0.91	0.89	0.88	-0.29
Long Term Investments	0.49	0.47	-0.25	0.52	0.64	0.63	0.47	0.5	-0.39	0.25	0.21	0.39	-0.29	-0.6	0.28	0.22	-0.34	0.42	0.41	0.6		-0.15	0.43	0.38	0.33	-0.12
Short Long Term Debt	-0.62	-0.71	0.72	-0.67	-0.14	-0.71	-0.05	-0.57	-0.12	-0.23	-0.84	0.02	0.21	0.43	-0.75	-0.15	0.05	-0.29	-0.14	-0.31	-0.15		-0.36	-0.49	-0.47	1.0
Cash And Equivalents	0.9	0.86	-0.83	0.82	0.82	0.68	0.86	0.92	-0.37	0.13	0.51	0.78	-0.16	-0.81	0.78	0.67	-0.14	0.95	0.83	0.91	0.43	-0.36		0.99	0.98	-0.35
Net Invested Capital	0.93	0.9	-0.9	0.86	0.77	0.72	0.8	0.93	-0.3	0.14	0.62	0.71	-0.16	-0.8	0.84	0.66	-0.12	0.94	0.78	0.89	0.38	-0.49	0.99		0.99	-0.48
Net Working Capital	0.91	0.88	-0.88	0.84	0.76	0.69	0.82	0.92	-0.27	0.17	0.6	0.73	-0.16	-0.79	0.84	0.7	-0.11	0.93	0.8	0.88	0.33	-0.47	0.98	0.99		-0.45
Capital Stock	-0.61	-0.7	0.71	-0.66	-0.12	-0.69	-0.04	-0.56	-0.13	-0.21	-0.84	0.03	0.21	0.41	-0.74	-0.14	0.03	-0.28	-0.13	-0.29	-0.12	1.0	-0.35	-0.48	-0.45

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NVR Return On Equity Historical Pattern

Today, most investors in NVR Stock are looking for potential investment opportunities by analyzing not only static indicators but also various NVR's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of NVR return on equity as a starting point in their analysis.

NVR Return On Equity

Timeline

For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

Predict NVR

Return On Equity Over Time

NVR Total Stockholder Equity

Total Stockholder Equity

4.58 Billion

At this time, NVR's Total Stockholder Equity is relatively stable compared to the past year.

Based on the latest financial disclosure, NVR Inc has a Return On Equity of 0.3872. This is 89.24% lower than that of the Household Durables sector and 93.12% lower than that of the Consumer Discretionary industry. The return on equity for all United States stocks is notably lower than that of the firm.

NVR Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses NVR's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of NVR could also be used in its relative valuation, which is a method of valuing NVR by comparing valuation metrics of similar companies.

NVR is currently under evaluation in return on equity category among its peers.

NVR ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, NVR's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to NVR's managers, analysts, and investors.

Environmental

Governance

Social

NVR Fundamentals

	Return On Equity	0.39
	Return On Asset	0.2
	Profit Margin	0.16 %
	Operating Margin	0.20 %
	Current Valuation	26.1 B
	Shares Outstanding	3.06 M
	Shares Owned By Insiders	4.84 %
	Shares Owned By Institutions	84.86 %
	Number Of Shares Shorted	52.37 K
	Price To Earning	18.12 X
	Price To Book	6.46 X
	Price To Sales	2.68 X
	Revenue	9.53 B
	Gross Profit	2.82 B
	EBITDA	1.97 B
	Net Income	1.59 B
	Cash And Equivalents	2.52 B
	Cash Per Share	544.37 X
	Total Debt	1.01 B
	Debt To Equity	0.33 %
	Current Ratio	4.70 X
	Book Value Per Share	1,394 X
	Cash Flow From Operations	1.5 B
	Short Ratio	3.25 X
	Earnings Per Share	488.19 X
	Price To Earnings To Growth	4.89 X
	Target Price	9623.33
	Number Of Employees	6.3 K
	Beta	1.2
	Market Capitalization	27.6 B
	Total Asset	6.6 B
	Retained Earnings	13.37 B
	Working Capital	4.53 B
	Current Asset	1.43 B
	Current Liabilities	370.69 M
	Net Asset	6.6 B

About NVR Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze NVR Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NVR using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NVR Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with NVR

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NVR position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NVR will appreciate offsetting losses from the drop in the long position's value.

Moving against NVR Stock

0.36	VMAR	Vision Marine Techno	Pair Corr
0.34	FORD	Forward Industries	Pair Corr

The ability to find closely correlated positions to NVR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVR when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NVR - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NVR Inc to buy it.

The correlation of NVR is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NVR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVR Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for NVR can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for NVR Stock Analysis

When running NVR's price analysis, check to measure NVR's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVR is operating at the current time. Most of NVR's value examination focuses on studying past and present price action to predict the probability of NVR's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVR's price. Additionally, you may evaluate how the addition of NVR to your portfolios can decrease your overall portfolio volatility.

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