April 23, 2025 a 07:31 am
NVR: Dividend Analysis - NVR, Inc.
NVR, Inc., a key player in the real estate industry, historically boasts high dividend yields yet last disbursed dividends in 1990. Despite a remarkable market cap and financial stability, the lack of recent dividends suggests a strategic focus away from direct shareholder returns. Instead, a substantial reinvestment strategy appears to propel growth, retaining earnings progressively.
Overview 📊
Despite a robust market presence, NVR, Inc. opts for strategic capital deployment over direct dividends. Here's an overview:
| Metric | Value |
|---|---|
| Sector | Real Estate |
| Dividend yield | 18.24% |
| Current dividend per share | 0 USD |
| Dividend history | 4 years |
| Last cut or suspension | 1990 |
Dividend History 🗣️
NVR's historical dividends reveal a past emphasis, shifting notably since the last dividend in 1990. Long-term suspension might impact investor confidence; however, robust internal investments could lead to superior growth prospects.
| Year | Dividend per Share (USD) |
|---|---|
| 1990 | 0.167 |
| 1989 | 0.846 |
| 1988 | 0.335 |
| 1987 | 0.234 |
Dividend Growth 📈
Currently, NVR records zero growth due to its prolonged dividend discontinuation. Such a strategy indicates either reinvestment of earnings or conservative cash retention. Without historical growth rates, insight into potential restoration remains speculative.
| Time | Growth |
|---|---|
| 3 years | 0 % |
| 5 years | 0 % |
The average dividend growth is 0% over 5 years, highlighting strategy divergence towards operational and market expansion.
Payout Ratio ⚠️
NVR's payout ratios remain at 0%, indicative of comprehensive reinvestment or cash preservation strategy. With zero dividend outflow, the company retains greater flexibility in strategic capital applications, enabling adaptive financial maneuvering.
| Key figure ratio | Value |
|---|---|
| EPS-based | 0 % |
| Free cash flow-based | 0 % |
Cashflow & Capital Efficiency ✅
NVR's capital allocation shows efficiency; substantial free cash flow and earnings yields back strategic project funding. However, low stock-based compensation indicates limited use of equity as incentives, favoring robust cash reserves management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.3% | 6.5% | 12.2% |
| Earnings Yield | 6.6% | 7.0% | 11.4% |
| CAPEX to Operating Cash Flow | 2.1% | 1.7% | 0.99% |
| Stock-based Compensation to Revenue | 0.7% | 1.0% | 0.8% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.9% | 98.3% | 99.0% |
Balance Sheet & Leverage Analysis 📉
NVR maintains a conservative approach to leverage; low debt levels and high quick ratios underscore a stable financial architecture. Such prudent fiscal policies leverage operational flexibility and a controlled expansion outlook.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 24.2% | 23.2% | 28.7% |
| Debt-to-Assets | 16.0% | 15.4% | 17.8% |
| Debt-to-Capital | 19.5% | 18.9% | 22.3% |
| Net Debt to EBITDA | -0.73 | -1.09 | -0.66 |
| Current Ratio | 5.07 | 4.90 | 5.64 |
| Quick Ratio | 11.36 | 3.31 | 3.50 |
| Financial Leverage | 1.52 | 1.51 | 1.61 |
Fundamental Strength & Profitability 💪
NVR's profitability metrics manifest their industry dominance. Notably high ROEs and asset returns signify superior operational efficiencies, with margins enhancing shareholder value long-term.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 39.9% | 36.5% | 49.2% |
| Return on Assets | 26.4% | 24.1% | 30.5% |
| Margins: Net | 16.0% | 16.7% | 16.4% |
| Margins: EBIT | 20.3% | 20.5% | 21.8% |
| Margins: EBITDA | 20.5% | 20.7% | 21.9% |
| Margins: Gross | 25.5% | 26.0% | 27.3% |
| Research & Development to Revenue | 0% | 0% | 0% |
Price Development 🏷️
Dividend Scoring System 🎯
| Criteria | Score | Visual Score |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 1 | |
| Dividend growth | 1 | |
| Payout ratio | 1 | |
| Financial stability | 5 | |
| Dividend continuity | 1 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 5 |
Total Score: 21/40
Rating 🌟
NVR, Inc., demonstrating robust financials within the real estate sector, advanced with strategic reinvestment over dividends. Ultimately, should dividends resume, expect potential high returns owing to its financially sound groundwork and strategic cash management.