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NVR Gross Margin %

: 27.69% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. NVR's Gross Profit for the three months ended in Jun. 2022 was $737 Mil. NVR's Revenue for the three months ended in Jun. 2022 was $2,662 Mil. Therefore, NVR's Gross Margin % for the quarter that ended in Jun. 2022 was 27.69%.


The historical rank and industry rank for NVR's Gross Margin % or its related term are showing as below:

NVR' s Gross Margin % Range Over the Past 10 Years
Min: 18.79   Med: 20.47   Max: 27.22
Current: 27.22


During the past 13 years, the highest Gross Margin % of NVR was 27.22%. The lowest was 18.79%. And the median was 20.47%.

NVR's Gross Margin % is ranked better than
68.93% of 103 companies
in the Homebuilding & Construction industry
Industry Median: 23.28 vs NVR: 27.22

NVR had a gross margin of 27.69% for the quarter that ended in Jun. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for NVR was 3.70% per year.


NVR Gross Margin % Historical Data

The historical data trend for NVR's Gross Margin % 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
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.96 20.67 20.96 21.32 24.52

NVR Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % 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 24.68 24.19 26.27 30.63 27.69

Competitive Comparison

For the Residential Construction subindustry, NVR's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's Gross Margin % distribution charts can be found below:

* The bar in red indicates where NVR's Gross Margin % falls into.



NVR Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

NVR's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=2196.6 / 8959.75
=(Revenue - Cost of Goods Sold) / Revenue
=(8959.75 - 6763.115) / 8959.75
=24.52 %

NVR's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=737 / 2661.715
=(Revenue - Cost of Goods Sold) / Revenue
=(2661.715 - 1924.727) / 2661.715
=27.69 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


NVR  (NYSE:NVR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

NVR had a gross margin of 27.69% for the quarter that ended in Jun. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


NVR Gross Margin % Related Terms

Thank you for viewing the detailed overview of NVR's Gross Margin % 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

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