Stock Analysis

Stock Analysis · NVR Inc (NVR)

Overview

NVR Inc is a U.S. homebuilder. It sells newly built homes to customers and also provides mortgage-related services connected to those home sales. The company operates through well-known homebuilding brands (including Ryan Homes, NVHomes, and Heartland Homes) and focuses on building and selling homes across multiple states, primarily in the eastern U.S.

In simple terms, NVR’s business is tied to the “new home” cycle: when demand for housing is strong and financing is available at reasonable costs, homebuilders tend to benefit. When mortgage rates rise sharply or the economy slows, demand can cool quickly.

Main revenue sources are typically grouped as:

Homebuilding (the sale of newly built homes, plus related items tied to closing a home sale)
Mortgage banking (services that help buyers finance homes, which can support conversions from signed contracts to closed sales)

Overall profitability depends heavily on home sales volumes, home prices, construction costs (labor and materials), and the pace at which the company can turn land and construction into completed homes.

Across the years shown, total revenue moves with the housing cycle (rising and falling), while costs remain the largest portion of revenue. Net income stays positive throughout the period, but it declines in the most recent year shown (2025), reflecting how sensitive results can be to housing demand and/or margin pressure.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Consumer Cyclical
Industry	Residential Construction
Market Cap ⓘ	$21.89B
Beta ⓘ	1.03
Fundamental
P/E Ratio ⓘ	18.35	12.00
Profit Margin ⓘ	12.84%	8.48%
Revenue Growth ⓘ	-5.00%	-4.90%
Debt to Equity ⓘ	30.96%	34.53%
PEG ⓘ	4.89
Free Cash Flow ⓘ	$1.29B

NVR’s market capitalization is about $21.9B. The stock’s beta is ~1.04, which is close to the broader market (meaning it has tended to move roughly in line with overall market swings, though any single stock can behave differently in specific periods).

On profitability, NVR’s profit margin is ~12.84%, compared with an industry median of ~8.49%, indicating stronger bottom-line profitability than many peers in Residential Construction. Recent year-over-year revenue growth is about -5.0% (industry median around -4.9%), showing a similar near-term slowdown to the broader peer group.

Balance-sheet leverage appears moderate: debt-to-equity is ~30.96% versus an industry median of ~34.53%. Free cash flow (trailing twelve months) is about $1.29B, which matters because cash generation can support resilience during slower housing periods (for example through land purchases, operational flexibility, or other corporate uses).

Growth (Medium)

Homebuilding is a large, long-running industry, but it is also cyclical. Demand is influenced by employment, wage growth, consumer confidence, household formation, housing supply, and—especially—mortgage rates. That means growth often comes in waves rather than in a smooth line upward.

The pattern shown highlights that NVR’s growth rate can swing significantly from positive to negative depending on the period. After strong growth earlier in the timeline, revenue growth later turned negative, recovered, and then softened again. This is typical for a homebuilder and reinforces that results often depend on the broader housing environment rather than only company-specific execution.

Free cash flow remains substantial across the years displayed (roughly in the $1.2B–$1.9B range). Even when growth slows, consistent cash generation can be an important stabilizer, because it gives management more options to navigate down-cycles.

Potential catalysts for future growth in this type of business usually include improved housing affordability (often linked to lower mortgage rates), a stronger job market, and favorable supply/demand dynamics for homes in the company’s operating regions. However, these are macro-driven factors and can change quickly.