NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has significantly decreased by 46.1% when compared to the same quarter one year ago, falling from $71.28 million to $38.45 million.
- NVR, with its decline in revenue, underperformed when compared the industry average of 16.6%. Since the same quarter one year prior, revenues fell by 27.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- NVR's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
NVR, Inc. operates as a homebuilder in the United States. The company has a P/E ratio of 27.4, above the average materials & construction industry P/E ratio of 23.3 and above the S&P 500 P/E ratio of 17.7. NVR has a market cap of $4.2 billion and is part of the
industry. Shares are up 1.8% year to date as of the close of trading on Monday.
You can view the full
or get investment ideas from our