GURUFOCUS.COM » STOCK LIST » USA » NYSE » NVR Inc (NYSE:NVR) » Definitions » Piotroski F-Score
Switch to:

NVR Piotroski F-Score

: 6 (As of Today)
View and export this data going back to 1986. Start your Free Trial

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

NVR has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for NVR's Piotroski F-Score or its related term are showing as below:

NVR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of NVR was 9. The lowest was 3. And the median was 6.


NVR Piotroski F-Score Historical Data

The historical data trend for NVR's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NVR Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 7.00 6.00 5.00 7.00

NVR Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 7.00 5.00 6.00

Competitive Comparison

For the Residential Construction subindustry, NVR's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

NVR Piotroski F-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where NVR's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 332.081 + 334.581 + 426.1 + 433.314 = $1,526 Mil.
Cash Flow from Operations was 461.272 + 260.101 + 309.326 + 137.88 = $1,169 Mil.
Revenue was 2397.976 + 2232.489 + 2380.483 + 2661.715 = $9,673 Mil.
Gross Profit was 580.037 + 586.439 + 729.118 + 736.988 = $2,633 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(5854.436 + 5788.894 + 5834.475 + 5726.213 + 5287.699) / 5 = $5698.3434 Mil.
Total Assets at the begining of this year (Jun21) was $5,854 Mil.
Long-Term Debt & Capital Lease Obligation was $1,003 Mil.
Total Current Assets was $4,307 Mil.
Total Current Liabilities was $854 Mil.
Net Income was 256.466 + 305.004 + 248.762 + 321.295 = $1,132 Mil.

Revenue was 1992.234 + 2346.4 + 2043.478 + 2285.807 = $8,668 Mil.
Gross Profit was 456.19 + 524.279 + 466.025 + 564.134 = $2,011 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(4730.02 + 5499.92 + 5777.141 + 5820.808 + 5854.436) / 5 = $5536.465 Mil.
Total Assets at the begining of last year (Jun20) was $4,730 Mil.
Long-Term Debt & Capital Lease Obligation was $1,597 Mil.
Total Current Assets was $5,007 Mil.
Total Current Liabilities was $850 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

NVR's current Net Income (TTM) was 1,526. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

NVR's current Cash Flow from Operations (TTM) was 1,169. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=1526.076/5854.436
=0.26067003

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1131.527/4730.02
=0.23922246

NVR's return on assets of this year was 0.26067003. NVR's return on assets of last year was 0.23922246. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

NVR's current Net Income (TTM) was 1,526. NVR's current Cash Flow from Operations (TTM) was 1,169. ==> 1,169 <= 1,526 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=1003.096/5698.3434
=0.17603292

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=1596.689/5536.465
=0.28839503

NVR's gearing of this year was 0.17603292. NVR's gearing of last year was 0.28839503. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=4307.077/853.818
=5.04449075

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=5007.09/850.016
=5.89058324

NVR's current ratio of this year was 5.04449075. NVR's current ratio of last year was 5.89058324. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

NVR's number of shares in issue this year was 3.504. NVR's number of shares in issue last year was 3.897. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2632.582/9672.663
=0.27216724

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2010.628/8667.919
=0.23196202

NVR's gross margin of this year was 0.27216724. NVR's gross margin of last year was 0.23196202. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=9672.663/5854.436
=1.65219382

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=8667.919/4730.02
=1.83253327

NVR's asset turnover of this year was 1.65219382. NVR's asset turnover of last year was 1.83253327. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

NVR has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NVR  (NYSE:NVR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


NVR Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of NVR's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


NVR Business Description

NVR logo
Traded in Other Exchanges
Address
11700 Plaza America Drive, Suite 500, Reston, VA, USA, 20190
NVR Inc is a United States-based homebuilding company operating in over 33 metropolitan areas across the 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. NVR's avoidance of direct land development activity is unique among public homebuilders and results in relatively outsize return metrics. The Virginia-based company also manages a mortgage banking segment and building products operations.
Executives
Bailey Sallie B director FERRO CORPORATION 1000 LAKESIDE AVENUE CLEVELAND OH 44124-1147
Praylo Paul W officer: SVP, Chief Operating Officer 11700 PLAZA AMERICA DR SUITE 500 RESTON VA 20190
Jung Alexandra A director 11700 PLAZA AMERICA DR SUITE 500 RESTON VA 20190
Ross Susan Williamson director 11700 PLAZA AMERICA DR, SUITE 500 RESTON VA 20190
Kelpy Matthew B. officer: VP, Chief Accounting Officer 11700 PLAZA AMERICA DRIVE SUITE 500 RESTON VA 20190
Martchek Jeffrey D officer: President of Homebuilding Ops 11700 PLAZA AMERICA DRIVE SUITE 500 RESTON VA 20190
Grier Eddie Arthur director 11700 PLAZA AMERICA DRIVE, SUITE 500 RESTON VA 20190
Malzahn Daniel David officer: Chief Financial Officer 11700 PLAZA AMERICA DRIVE, SUITE 500 RESTON VA 20190
Martinez Melquiades R. director 450 SOUTH ORANGE AVENUE SUITE 250 ORLANDO FL 32801-3443
Bredow Eugene James officer: Controller 11700 PLAZA AMERICA DRIVE SUITE 500 RESTON VA 20190
Eckert Thomas D director 1997 ANNAPOLIS EXCHANGE PARKWAY SUITE 410 ANNAPOLIS MD 21401
Goethe Robert A officer: President, NVRM, Inc. PO BOX 669 MONTGOMERY AL 36104
Festa Alfred E director
Rosier William Grady director 1111 MILLCREEK DRIVE SALADO TX 76571
Andrews Charles Elliott director C/O H&R BLOCK ONE H&R BLOCK WAY KANSAS CITY MO 64105

NVR Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)