NVR Inc. Trades At A Discount To Other Builders - Should It?
Alpha Gen Capital
Alpha Gen Capital
NVR Inc.: Same Homebuilding Industry, Different Approach
Sat, May 21, 12:49 PM
- Laslzo Birinyi still sees underlying strength in the stock market, despite the myriad of economic, technical, and political fears holding back investor enthusiasm.
- In particular, the well-known investor has his eyes on AutoZone (NYSE:AZO) and builder NVR (NYSE:NVR) as "special situations" stocks.
- Kraft Heinz (NASDAQ:KHC) also makes the list due to its lack of volatility amid a volatile market which could indicate upside down the road. On that point, a quick screen of other consumer goods stocks like Kraft that have weathered the uneven read on U.S. consumer spending and global demand over the last month may tip off some other value picks.
- Here's ten consumer good stocks with a low recent volatility measurement, below average forward P/E ratio, and +2% dividend yield: DEO, UN, UL, CAJ, RMCF, KO, PEP, BUD, PM, PG, TM.
- Related ETFs: IYK, UGE, SZK.
Thu, Apr. 21, 9:17 AM
Wed, Apr. 20, 5:30 PM
- ADS, ALK, AZZ, BANC, BBT, BHE, BIIB, BK, BX, CFG, CLS, COL, DAN, DGX, DHI, DHR, DOV, DST, ERIC, FAF, FCS, FITB, GM, GMT, HOMB, IMAX, JAKK, JCI, KCG, KEY, LAD, LAZ, LUV, MAN, MDSO, MDWD, NUE, NVR, NVS, PBCT, PHM, PII, POOL, PPG, PVTB, RS, SHW, SILC, SNA, SON, STC, SWK, SYNT, TCB, TRV, UA, UNP, USG, UTEK, VZ
Tue, Jan. 26, 9:21 AM
Mon, Jan. 25, 5:30 PM
Dec. 15, 2015, 9:47 AM
- KB Home (KBH +1.8%) is having a tough year - lower by 24% - but Credit Suisse sees worse things ahead, downgrading to Underperform and cutting the price target to $12 from $17. Also downgraded to Underperform is NVR (NVR -0.7%), but that stock has been a sector leader this year, up 35%.
- Catching an upgrade after a tough run is Meritage Homes (MTH +2.9%), Down just 3% YTD, MTH is lower by 18% over the last three months. The team upgrades to Neutral with $35 price target.
Oct. 20, 2015, 9:12 AM
- NVR (NYSE:NVR): Q3 EPS of $27.11 beats by $0.47.
- Revenue of $1.4B (+15.7% Y/Y) misses by $20M.
Oct. 19, 2015, 5:30 PM
Jul. 29, 2015, 10:38 AM
- Sales orders gained a fast 22% year-over-year in the quarter ended June 30, writes Kris Hudson, lower than some analysts had hoped, but still a strong number. Sequentially though, orders for D.R. Horton, PulteGroup (NYSE:PHM), M/I Homes (NYSE:MHO), and NVR all slowed, according to Housing ResearchCenter, though normal seasonality would call for an increase. Higher interest rates are likely to blame.
- D.R. Horton's average sales price of $289K rose 2.9% Y/Y, keeping in place a pattern of low-single digit gains over the past year. It's not necessarily that builders are lowering prices, but the mix has changed, with D.R. Horton in particular building larger numbers of less-expensive homes. The company's Express brand of entry-level homes - started in 2013 - accounted for 19% of orders in the last quarter. Still the percentage of first-time homebuyers of 41% was flat Y/Y, and down from 44% two years ago.
- Credit remains tough to come by, with the average FICO score of D.R. Horton-originated mortgages of 716 last quarter vs. 719 a year ago and 723 two years ago.
- ETFs: ITB, XHB
- Previously: D.R. Horton profit nearly doubles (July 28)
Jul. 21, 2015, 9:39 AM
- Q2 net income of $93.4M or $21.91 per share vs. $68.2M and $15.17 one year ago.
- New orders of 3,796 units up 11% Y/Y. ASP of new orders of $378K up 3%.
- Cancellation rate of 14% up 100 bps from last year.
- Settlements of 3,175 units up 8% Y/Y. Backlogs of 7,488 units up 15%; up 17% in dollars to $2.854B.
- Gross profit margin of 19.2% up 60 bps from one year ago.
- Mortgage closed loan production of $859M up 27% Y/Y. Operating income for mortgage banking of $11.4M vs. $6.2M.
- Previously: NVR beats by $2.82, misses on revenue (July 21)
- NVR +1.4%
Jul. 21, 2015, 9:03 AM
- NVR (NYSE:NVR): Q2 EPS of $21.91 beats by $2.82.
- Revenue of $1.24B (+12.7% Y/Y) misses by $60M.
Jul. 20, 2015, 5:30 PM
Jun. 15, 2015, 9:44 AM
- Zigging higher while the rest of the market zags sharply lower are the homebuilders following this weekend's merger of Ryland Homes and Standard Pacific.
- While there have been a number of smaller deals over the past year, this one is more sizable, setting off hope of a broader - and necessary, according to some - consolidation in the fragmented sector.
- Lennar (LEN +1.9%), Toll Brothers (TOL +1.4%), M.D.C. Holdings (MDC +2.3%), M/I Homes (MHO -0.5%), NVR (NVR), D.R. Horton (DHI +1.5%), KB Home (KBH +0.7%), Beazer Homes (BZH +1.2%), PulteGroup (PHM +1.6%), Hovnanian (HOV flat)
- Previously: Industry eyes Ryland/Standard Pacific merger (June 15)
May 12, 2015, 10:47 AM
- An improving job market and loosening lending standards are set to unleash pent-up demand and lead to the best decade for residential homebuilding since the 1970s, says Morningstar's Daniel Rohr.
- The prediction may seem "outrageous" considering the lame recovery of the past few years, but it's that lame recovery which makes the outlook so strong, says Rohr. He sees an average of 1.6M annual starts through 2024. In the post-war era, only the 1970s - with a 1.75M average - was better.
- Top picks include lumber company Weyerhaeuser (NYSE:WY), steelmaker Nucor (NYSE:NUE), and homebuilder NVR (NYSE:NVR), and the related mortgage boom will be of benefit to lenders like U.S. Bancorp (NYSE:USB), BB&T (NYSE:BBT), and Fifth Third (NASDAQ:FITB).
Apr. 21, 2015, 9:34 AM
- Q1 net income of $39.06M or $9.22 per share, up 64% and 79%, respectively from a year ago.
- New home orders of 3,926 units up 18%. ASP of $375.4K up 2%. Cancellation rate of 12% is flat.
- Settlements of 2,534 units up 15%. Backlogs of homes sold, but not settled of 6,867 units up 13%, up 16% on a dollar basis.
- Mortgage banking closed loan production of $638.6M up 35% Y/Y.
- Previously: NVR misses by $0.68, beats on revenue (April 21)
- NVR +1% in early trading.
Apr. 21, 2015, 9:05 AM
- NVR (NYSE:NVR): Q1 EPS of $9.22 misses by $0.68.
- Revenue of $957.75M (+18.0% Y/Y) beats by $11.82M.
NVR, Inc. engages in the construction and sale of single-family detached homes, townhomes and condominium buildings. It operates in the Homebuilding and Mortgage Banking segments. The Homebuilding segment sells and builds homes under the trade names Ryan Homes, NVHomes, Fox Ridge Homes and... More
Sector: Industrial Goods
Industry: Residential Construction
Country: United States
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