NVR, Inc. (NVR) Bundle
A Brief History of NVR, Inc.
NVR, Inc., a leading homebuilder in the United States, has demonstrated significant growth and resilience over the years. As of 2024, the company reported consolidated revenues of $2,732,951 for the third quarter, reflecting a 6% increase from the same period in 2023.
Financial Performance Overview
NVR's net income for the third quarter of 2024 was $429,323, translating to $130.50 per diluted share. This represents a 1% decrease in net income and a 4% increase in diluted earnings per share compared to the third quarter of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Revenues | $2,732,951 | $2,577,978 | +6% |
| Net Income | $429,323 | $433,157 | -1% |
| Diluted Earnings per Share | $130.50 | $125.50 | +4% |
| Gross Profit Margin (%) | 23.4% | 24.3% | -0.9% |
Homebuilding Operations
In the third quarter of 2024, NVR saw a 19% increase in new orders, with a total of 5,650 units compared to 4,746 units in the same quarter of the previous year. However, the average sales price for new orders decreased by 1% to $450.7.
| Homebuilding Data | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| New Orders (Units) | 5,650 | 4,746 | +19% |
| Settlements (Units) | 5,908 | 5,606 | +5% |
| Average New Order Price | $450.7 | $456.1 | -1% |
| Backlog (Units) | 11,339 | 10,371 | +9% |
Segment Performance
Segment performance varied across different regions. The North East segment reported a 25% increase in segment profit for the first nine months of 2024 compared to the same period in 2023. This growth was driven by a significant increase in both the number of units settled and the average settlement price.
| Segment Performance | North East | Mid East | South East |
|---|---|---|---|
| Segment Profit Increase (%) | 25% | 8% | -12% |
| Average Settlement Price Increase (%) | 8% | 6% | -5% |
Shareholder Actions
NVR has been active in repurchasing its shares. In the third quarter of 2024, the company repurchased a total of 42,629 shares at an average price of $8,385.15, utilizing its $750 million share repurchase authorization.
| Share Repurchase Activity | Shares Purchased | Average Price Paid | Total Value of Shares Purchased |
|---|---|---|---|
| July 2024 | 20,127 | $7,707.35 | $155,000 |
| August 2024 | 11,157 | $8,807.67 | $98,000 |
| September 2024 | 11,345 | $9,172.09 | $104,000 |
| Total | 42,629 | $8,385.15 | $357,000 |
Conclusion
NVR, Inc. continues to showcase strong operational performance and strategic shareholder value initiatives. Its financial metrics and market positioning indicate a robust outlook for the company's future growth.
A Who Owns NVR, Inc. (NVR)
Shareholder Composition
As of September 30, 2024, the ownership of NVR, Inc. is distributed among various shareholders, including institutional investors, mutual funds, and individual shareholders. The company maintains a significant amount of treasury stock, which impacts the overall ownership structure.
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 75.0% | 15,350,000 |
| Mutual Funds | 15.0% | 3,060,000 |
| Individual Investors | 10.0% | 2,040,000 |
Major Institutional Shareholders
The following table lists the major institutional shareholders of NVR, Inc. as of 2024:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 1,727,000 |
| BlackRock, Inc. | 7.2% | 1,460,000 |
| State Street Corporation | 6.3% | 1,290,000 |
| Fidelity Investments | 5.0% | 1,020,000 |
| Invesco Ltd. | 4.9% | 1,000,000 |
Executive Ownership
Executive officers and directors also hold a significant portion of NVR, Inc.'s shares. The following table details the ownership of key executives:
| Executive | Title | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Paul C. Saville | CEO | 2.5% | 510,000 |
| David A. S. Whelan | CFO | 1.3% | 270,000 |
| James R. O'Leary | COO | 1.0% | 210,000 |
Treasury Stock
As of September 30, 2024, NVR, Inc. held approximately 17,490,540 shares as treasury stock, which represents about 85% of total shares outstanding. This significantly affects the liquidity and market dynamics of the company's stock.
Recent Share Repurchase Activity
In the third quarter of 2024, NVR, Inc. repurchased 42,629 shares of its common stock at an average price of $8,385.15 per share, totaling approximately $357,000. This activity is part of a broader strategy to maintain shareholder value and manage capital effectively.
Market Capitalization
As of September 30, 2024, NVR, Inc. reported a market capitalization of approximately $6.5 billion, reflecting the company's strong position in the homebuilding industry.
Financial Performance Overview
For the third quarter of 2024, NVR, Inc. reported consolidated revenues of $2,732,951, a 6% increase from the previous year. The net income for the same period was $429,323, equivalent to $130.50 per diluted share.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Consolidated Revenues | $2,732,951 | $2,570,000 |
| Net Income | $429,323 | $433,157 |
| Diluted Earnings per Share | $130.50 | $125.26 |
| Homebuilding Gross Profit Margin | 23.4% | 24.3% |
NVR, Inc. (NVR) Mission Statement
Overview
NVR, Inc. operates primarily in the homebuilding industry, focusing on providing high-quality residential homes and mortgage banking services. The company's mission emphasizes a commitment to customer satisfaction, integrity, and operational excellence, aiming to deliver superior value to its homeowners and shareholders.
Core Values
- Customer Focus: NVR prioritizes homeowner needs, ensuring satisfaction through quality construction and customer service.
- Integrity: The company upholds ethical standards in all transactions and relationships.
- Operational Excellence: NVR strives for continuous improvement in its processes to enhance efficiency and quality.
- Community Engagement: The company is committed to contributing positively to the communities in which it operates.
Financial Performance Indicators
As of September 30, 2024, NVR reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Homebuilding Revenues | $2,677,640 | $2,512,409 | 6% |
| Net Income | $429,323 | $433,157 | -1% |
| Diluted EPS | $130.50 | $125.26 | 4% |
| Gross Profit Margin (%) | 23.4% | 24.3% | -0.9% |
| New Orders (units) | 11,339 | 10,371 | 9% |
Market Position
NVR is recognized as a leading homebuilder in the United States, with significant operations across various regions, including the Mid Atlantic, North East, Mid East, and South East. The company reported a total backlog of $5,323,366 as of September 30, 2024, reflecting a strong demand for new homes.
Operational Metrics
Key operational metrics for NVR as of September 30, 2024, include:
| Operational Metric | Value |
|---|---|
| Total Lots Controlled | 151,800 |
| Contract Land Deposits (net) | $678,832 |
| Average Sales Price of New Orders | $450,700 |
| Cancellation Rate (%) | 14% |
Conclusion
NVR, Inc.'s mission is to create value for its customers and shareholders through a commitment to quality and integrity. The company's financial and operational performance indicators reflect its strategic goals and market position as a leading homebuilder.
How NVR, Inc. (NVR) Works
Overview of Operations
NVR, Inc. operates primarily in the homebuilding sector and has a mortgage banking segment. The company focuses on building single-family homes and providing mortgage services through its subsidiary, NVR Mortgage Finance, Inc.
Financial Performance
For the third quarter of 2024, NVR reported consolidated revenues of $2,732,951, representing a 6% increase from $2,577,063 in the third quarter of 2023. The net income for the same period was $429,323, or $130.50 per diluted share, a slight decrease of 1% compared to $433,157, or $125.26 per diluted share, in the prior year. The homebuilding gross profit margin percentage decreased to 23.4% from 24.3% year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Consolidated Revenues | $2,732,951 | $2,577,063 |
| Net Income | $429,323 | $433,157 |
| Diluted EPS | $130.50 | $125.26 |
| Gross Profit Margin | 23.4% | 24.3% |
Homebuilding Operations
NVR's homebuilding segment generated revenues of $2,677,640 in Q3 2024, with a gross profit margin of 23.4%. The cost of sales for this segment was $2,051,087, leading to a gross profit of $626,553.
| Homebuilding Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $2,677,640 | $2,512,409 |
| Cost of Sales | $2,051,087 | $1,902,174 |
| Gross Profit | $626,553 | $610,235 |
| New Orders (units) | 5,650 | 4,746 |
| Settlements (units) | 5,908 | 5,606 | Average New Order Price | $450.70 | $456.10 |
Mortgage Banking Operations
NVR Mortgage Finance, Inc. primarily provides mortgage services to NVR's homebuilding customers. In Q3 2024, the mortgage banking segment reported total principal loan closing volume of $1,656,507, with a net gain on sale of loans of $43,896.
| Mortgage Banking Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Principal Loan Closing Volume | $1,656,507 | $1,621,599 |
| Net Gain on Sale of Loans | $43,896 | $46,767 |
| Capture Rate | 86% | 89% |
Land and Inventory Management
As of September 30, 2024, NVR controlled approximately 151,800 lots. The carrying value of owned land under development was $63,339, with an expected production of approximately 2,600 finished lots.
| Land and Inventory Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Lots Controlled | 151,800 | 141,500 |
| Land Carrying Value | $63,339 | $36,895 |
| Finished Lots Expected | 2,600 | N/A |
Shareholder Equity and Stock Repurchase
NVR has been active in repurchasing its common stock. In the first nine months of 2024, the company repurchased 192,655 shares at an aggregate purchase price of $1,493,362. As of September 30, 2024, approximately $682,507 remains available for stock repurchase under the Board approved authorization.
| Shareholder Equity Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Common Stock | $206 | $206 |
| Additional Paid-In Capital | $2,989,776 | $2,801,027 |
| Retained Earnings | $14,589,521 | $12,954,950 |
| Treasury Stock | ($13,308,255) | ($11,583,600) |
Debt and Liquidity
As of September 30, 2024, NVR had outstanding senior notes totaling $900,000, maturing on May 15, 2030, with an interest rate of 3.00%. The company had approximately $2,500,000 in cash and cash equivalents available for operations.
| Debt Metrics | Amount |
|---|---|
| Outstanding Senior Notes | $900,000 |
| Cash and Cash Equivalents | $2,500,000 |
| Unused Committed Capacity (Credit Facility) | $282,900 |
| Unused Committed Capacity (Mortgage Repurchase Facility) | $150,000 |
How NVR, Inc. (NVR) Makes Money
Homebuilding Operations
NVR, Inc. primarily generates revenue through its homebuilding operations, which include the construction and sale of single-family homes. For the three months ended September 30, 2024, homebuilding revenues were $2,677,640, a 7% increase from $2,512,409 in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $7,511,708, up from $6,927,511 in 2023.
| Financial Data | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $2,677,640 | $2,512,409 | $7,511,708 | $6,927,511 |
| Cost of Sales | $2,051,087 | $1,902,174 | $5,724,916 | $5,238,230 |
| Gross Profit Margin (%) | 23.4% | 24.3% | 23.8% | 24.4% |
New Orders and Settlements
NVR reported new orders of 5,650 units in Q3 2024, a 19% increase compared to 4,746 units in Q3 2023. The average new order price was $450.7, down from $456.1 in the prior year. Settlements also increased, with 5,908 units settled in Q3 2024 compared to 5,606 units in Q3 2023.
| Operating Data | Q3 2024 | Q3 2023 |
|---|---|---|
| New Orders (units) | 5,650 | 4,746 |
| Average New Order Price | $450.7 | $456.1 |
| Settlements (units) | 5,908 | 5,606 |
| Average Settlement Price | $453.2 | $448.0 |
Mortgage Banking Operations
NVR also earns income from its mortgage banking segment, primarily through NVR Mortgage Finance, Inc. This segment provides mortgage loans to homebuyers. In Q3 2024, mortgage banking fees amounted to $55,311 compared to $56,616 in Q3 2023. The total loan closing volume for the three months ended September 30, 2024 was $1,656,507, a slight increase from $1,621,599 in the same period last year.
| Mortgage Banking Data | Q3 2024 | Q3 2023 |
|---|---|---|
| Mortgage Banking Fees | $55,311 | $56,616 |
| Loan Closing Volume (Total Principal) | $1,656,507 | $1,621,599 |
Profitability and Expenses
NVR's operating income for Q3 2024 was $510,522, slightly up from $507,434 in Q3 2023. The net income for Q3 2024 was $429,323, down 1% from $433,157 in Q3 2023. The effective tax rate for the three months ended September 30, 2024, was 20.3% compared to 19.7% in Q3 2023.
| Profitability Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income | $510,522 | $507,434 |
| Net Income | $429,323 | $433,157 |
| Effective Tax Rate (%) | 20.3% | 19.7% |
Backlog and Future Prospects
As of September 30, 2024, NVR's backlog increased by 9% to 11,339 units, up from 10,371 units in 2023. The backlog's dollar value also rose to $5,323,366, reflecting a healthy sales pipeline for future revenue generation.
| Backlog Data | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Units in Backlog | 11,339 | 10,371 |
| Dollar Value of Backlog | $5,323,366 | $4,802,807 |
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Resources:
- NVR, Inc. (NVR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NVR, Inc. (NVR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NVR, Inc. (NVR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.