NVR, Inc. (NVR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: NVR, Inc.

Updated on October 31, 2026 · accounts published on October 22, 2026

A highly profitable business with net cash, going through a dip in earnings

NVR trades at a P/E of 16.4 over the last 12 months, 8 % below its sector median of 17.9 and 3 % below its own ten-year median of 17.0.

• Is NVR expensive or cheap? At a P/E of 16.4, NVR sits 8 % below its sector median and has traded cheaper only 43 % of the past decade.
• How is the business doing? EPS fell 14 % over the last 12 months on a 2 % revenue dip, yet ROIC of 22.1 % is more than double the sector median.
• How strong is the balance sheet? NVR held net cash of $252.21 per share in fiscal 2025, about 4 % of the share price, with debt/equity of 0.31.
• Could the balance sheet withstand a recession? NVR passes every cyclical health check, with net debt/EBITDA of −0.4× in fiscal 2025 against a healthy ceiling of 3.0×.
• What to expect from the next earnings? Analysts expect EPS of $98.16 in the report due January 27, 2027, after a 13 % miss on October 22, 2026.

Is NVR expensive or cheap?

Over the last 12 months NVR trades at a P/E of 16.4, 3 % below its ten-year median of 17.0 and 8 % below the 17.9 median of its sector. Across the decade the multiple ranged from 9.6 to 33.5, and it traded lower than today 43 % of the time, so the stock sits near the middle of its own history. The shares are down 18 % over the last 12 months and 26 % below their 52-week high. In a cyclical business, a P/E near the median deserves caution: if earnings keep shrinking, the multiple rises without the price moving. The free cash flow yield stands at 5.8 %.

How is the business doing?

Revenue slipped 2 % over the last 12 months while EPS fell 14 %, so profits are shrinking faster than sales. The operating margin of 14.0 % over the last 12 months is below the 16.2 % of fiscal 2025 and the 18.2 % five-year average, but close to the 14.5 % average of 2014-2025: margins are returning toward their long-run norm rather than collapsing. Returns remain strong. ROIC of 22.1 % over the last 12 months is 12.7 points above the sector median of 9.4 %, and it has exceeded 10 % in each of the last 10 fiscal years. ROE stands at 29.5 %.

How strong is the balance sheet?

The fiscal 2025 balance sheet shows $674.79 of cash per share against $422.57 of debt, leaving net cash of $252.21, equal to 4.2 % of the current price. Debt to equity is 0.31 over the last 12 months, and a current ratio of 3.71 means short-term assets cover short-term obligations almost four times. The Altman Z-score of 13.6 sits deep in the safe zone, far above the 2.99 threshold. The weak spot is a Piotroski score of 4 out of 9, which signals that several year-on-year trends are weakening, a warning about momentum rather than about solvency.

Could the balance sheet withstand a recession?

In consumer cyclicals, sales and margins can drop sharply in a downturn, which is why Peter Lynch warned that cyclicals look cheap when they are expensive and expensive when they are cheap. The tests that matter are whether a company earns well across the cycle and can survive the trough without borrowing. NVR's five-year operating margin averages 18.2 %, more than double the 8 % healthy floor, and its five-year ROIC of 29.1 % clears the 12 % bar. Inventory turned 4.6× in fiscal 2025, above the 4.0× threshold. Net debt/EBITDA of −0.4× means net cash, and the current ratio of 3.71 beats the 1.5 minimum.

What to expect from the next earnings?

The last report, on October 22, 2026, delivered EPS of $89.45 against $102.77 expected, a 13 % miss, and NVR has beaten estimates in only 4 of the last 8 quarters. Analysts have since cut the 2026 EPS consensus by 5.7 % in 30 days, from $360.03 to $339.65 (5 analysts), and trimmed revenue estimates by 3.1 %. For the next report on January 27, 2027, they expect EPS of $98.16. Of 25 analysts, 11 recommend buying, 10 holding and 4 selling, a divided view. The direction of estimate revisions is the figure to watch.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.