Yahoo Finance Here's How Much You'd Have If You Invested $1000 in NVR a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in NVR (NVR) ten years ago? It may not have been easy to hold on to NVR for all that time, but if you did, how much would your investment be worth today?
NVR's Business In-Depth
With that in mind, let's take a look at NVR's main business drivers.
Incorporated on Mar 4, 1993, NVR, Inc. is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. To serve homebuilding customers, the company operates a mortgage banking and title services business. The company operates in two business segments: Homebuilding and Mortgage Banking.The homebuilding (accounting for 98.1% of 2022 total revenues) division builds and sells homes under three brand names - Ryan Homes, NVHomes and Heartland Homes. The company currently operates in 32 metropolitan areas across 14 states. The two trade names - NVHomes and Heartland Homes, are mainly for move-up and upscale buyers.
Established in 1980, NVHomes operates in Virginia, Maryland, Delaware, and Pennsylvania. Heartland Homes operates in the Pittsburgh, PA metropolitan area.
NVR’s homebuilding division comprises operating divisions in the following geographic areas: Mid Atlantic (Maryland, Virginia, West Virginia, Delaware and Washington, D.C.), North East (New Jersey and Eastern Pennsylvania), Mid East (New York, Ohio, Western Pennsylvania, Indiana and Illinois) and South East (North Carolina, South Carolina, Florida and Tennessee).
NVR derived approximately 27% and 11% of homebuilding revenues in 2019 from Washington, DC and Baltimore metropolitan areas, respectively.
NVR’s Mortgage Banking (1.9%) provides mortgage-related services to home-building customers through its mortgage banking operations. These services are operated primarily through a wholly owned subsidiary, NVR Mortgage Finance, Inc. (“NVRM”).
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in NVR ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2013 would be worth $5,766.80, or a gain of 476.68%, as of May 4, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 153.39% and the price of gold went up 33.09% over the same time frame.
Looking ahead, analysts are expecting more upside for NVR.
Shares of NVR have outperformed its industry in the past three months. The company’s first-quarter 2023 earnings surpassed the Zacks Consensus Estimate by 3.6%. The company is benefiting from its lot acquisition strategy, which helps it to avoid financial requirements and risks associated with direct land ownership and land development. This helps it to operate in the cyclical industry and gain efficiencies and a competitive edge over its peers. Lots controlled by the company at first-quarter 2023-end increased 2.4% to 129,900 from 126,800 at prior-year quarter end. Also, a high ROE and a solid balance sheet add to the tailwinds. Although high interest rate and costs hurt growth prospects, earnings estimates for 2023 have increased in the past 30 days, depicting analysts’ optimism over the company’s growth prospects.
Over the past four weeks, shares have rallied 6.35%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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NVR, Inc. (NVR) : Free Stock Analysis Report
