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Organic Growth Boosts NVR’s Revenue

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NVR’s price movement

NVR (NVR) has a market capitalization of $6.5 billion. NVR’s YTD (year-to-date) price movement has been rising day-to-day in 2015. After its 3Q15 earnings report, NVR rose by 2.3% to close at $1,590 per share as of October 20, 2015. Its price movements on a weekly, monthly, and YTD basis are 0.61%, 1.5%, and 24.7%, respectively.

Technically, NVR has broken the support of its 20-day and 50-day moving averages throughout 2015. Currently, it’s trading at 2.0% above its 20-day moving average, 2.7% above its 50-day moving average, and 13.8% above its 200-day moving average.

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The iShares Dow Jones US Home Construction ETF (ITB) invests 7.7% of its holdings in NVR. The ETF tracks a market-cap–weighted index of companies involved in the production and sale of materials used in home construction. The YTD price movement of the ETF is 6.0% as of October 19, 2015. The SPDR S&P Homebuilders ETF (XHB) invests 3.2% of its holdings in NVR.

NVR’s competitors and their market capitalizations are as follows:

  • D.R. Horton (DHI) — $11.4 billion
  • PulteGroup (PHM) — $6.9 billion
  • M.D.C. Holdings (MDC) — $1.4 billion
  • HFF (HF) — $1.4 billion

NVR’s performance in 3Q15

The company has reported net revenue of $1,405.3 million in 3Q15, an increase of 12.8% on a quarterly basis. Revenues from home building and mortgage banking have increased by 12.5% and 25.6%, respectively, in 3Q15.

Net income and EPS (earnings per share) have increased to $116.5 million and $27.11 per share in 3Q15, rises of 24.7% and 23.7%, respectively, when compared to net income and EPS of $93.4 million and $21.91 per share in 2Q15.

The company’s debt-to-equity ratio has increased to 1.07 in 3Q15 as compared to a debt-to-equity ratio of 1.03 in 2Q15.

About NVR

NVR operates in two business segments. The first is homebuilding. The company sells and constructs homes under Ryan Homes, NV Homes, Foxridge Homes, and Heartland Homes. The second is mortgage banking. The company serves the needs of NVR homebuyers.

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