Deconstructing NVR Inc.'s Annual Report

By Bobby Samwell • Wednesday, February 14 16:59 • Permanent Link

Today, NVR, Inc. has released its 10-K report. NVR operates as a homebuilder in the United States and operates through Homebuilding and Mortgage Banking segments. The company constructs and sells single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. NVR also provides mortgage-related services to its homebuilding customers and brokers title insurance.

The company's shares have moved 2.1% on the market and are now trading at a price of $7501.73.

In 2023, housing demand improved due to the stabilization of mortgage interest rates, although affordability remains a challenge. NVR expects continued margin pressure from higher building materials, labor, and land costs. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, South Carolina, Florida, Tennessee, and Washington, D.C.

NVR's consolidated revenues for 2023 totaled $9,518,202, a decrease of 10% from 2022. The net income for 2023 was $1,591,611, a decrease of 8% compared to 2022. The homebuilding gross profit margin percentage was 24.3% in 2023, down from 25.8% in 2022. Settlements for 2023 totaled 20,662 units, a decrease of 9% from 2022. New orders, net of cancellations, during 2023 were 21,729, an increase of 13% from 2022, while the average new order sales price decreased by 3% to $448.4 in 2023.

NVR's backlog of homes sold but not yet settled with the customer as of December 31, 2023, increased on a unit basis by 12% to 10,229 units and increased on a dollar basis by 10% to $4,756,926 compared to December 31, 2022.

Income before tax from NVR's mortgage banking segment totaled $132,793 in 2023, an increase of 9% compared to 2022. Overall, NVR's financial performance in 2023 saw a decrease in revenues and net income, a decrease in homebuilding gross profit margin percentage, and a decrease in settlements, partially offset by an increase in new orders and backlog.

For more information, read the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.