E Stock Profile: NVR Inc.

NVR, (NVR) one of America’s leading homebuilders, operates in 33 metropolitan areas across 14 states east of the Mississippi River. The company builds single-family detached homes, townhomes and condominium buildings under three brands, Ryan Homes, NVHomes and Heartland Homes. In addition to building and selling homes, NVR provides a number of mortgage-related services for its homebuyers.

Brown Concrete Houses and Green Leafed Trees

Image Source: Pexels

 

Market Leader

Based in Reston, Virginia, NVR is one of America’s leading homebuilders. Its Ryan Homes brand was founded in 1948 in Pittsburgh, Pennsylvania, to provide housing in the booming postwar economy. Ryan Homes has constructed more than 440,000 homes and markets primarily to first-time buyers. The NVHomes brand, established in 1980 in Northern Virginia, offers additional architectural details and designer elements and has earned a reputation for both quality and value. Heartland Homes, founded in 1984, builds primarily luxury homes in the Pittsburgh metropolitan area. areas accounted for about 34% of NVR’s homebuilding revenues. As of 3/31/21, NVR’s homebuilding segment accounted for 96% of revenues and the mortgage banking segment accounted for 4% of revenues. Housing is primarily constructed on a pre-sold basis. NVR’s lot acquisition strategy is predicated upon reducing risk associated with direct land ownership and development. The company typically acquires finished building lots from third party land developers pursuant to fixed price finished lot purchase agreements. This strategy allows NVR to maximize inventory turnover while minimizing market risk and of return on equity and total capital. In addition to utilizing a conservative lot acquisition strategy, NVR focuses on obtaining and maintaining a leading market position in each market it serves, thereby gaining valuable efficiencies and competitive advantages. This strategy contributes to minimizing adverse effects of regional economic cycles and provides good growth opportunities within local markets.

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