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NVR Beneish M-Score

: -1.91 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NVR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.62   Med: -2.38   Max: 15.59
Current: -1.91

During the past 13 years, the highest Beneish M-Score of NVR was 15.59. The lowest was -3.62. And the median was -2.38.


NVR Beneish M-Score Historical Data

The historical data trend for NVR's Beneish M-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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.61 -2.39 -2.52 -2.68 -2.43

NVR Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-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 -2.34 -2.50 -2.43 -2.26 -1.91

Competitive Comparison

For the Residential Construction subindustry, NVR's Beneish M-Score, along with its competitors' market caps and Beneish M-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 Beneish M-Score Distribution

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

* The bar in red indicates where NVR's Beneish M-Score falls into.



NVR Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of NVR for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0617+0.528 * 0.8523+0.404 * 1.1932+0.892 * 1.1159+0.115 * 1.3525
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9854+4.679 * 0.0668-0.327 * 0.8403
=-1.91

* 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:
Total Receivables was $29 Mil.
Revenue was 2661.715 + 2380.483 + 2232.489 + 2397.976 = $9,673 Mil.
Gross Profit was 736.988 + 729.118 + 586.439 + 580.037 = $2,633 Mil.
Total Current Assets was $4,307 Mil.
Total Assets was $5,288 Mil.
Property, Plant and Equipment(Net PPE) was $609 Mil.
Depreciation, Depletion and Amortization(DDA) was $18 Mil.
Selling, General, & Admin. Expense(SGA) was $593 Mil.
Total Current Liabilities was $854 Mil.
Long-Term Debt & Capital Lease Obligation was $1,003 Mil.
Net Income was 433.314 + 426.1 + 334.581 + 332.081 = $1,526 Mil.
Non Operating Income was 1.303 + 1.072 + 0.876 + 1.022 = $4 Mil.
Cash Flow from Operations was 137.88 + 309.326 + 260.101 + 461.272 = $1,169 Mil.
Total Receivables was $24 Mil.
Revenue was 2285.807 + 2043.478 + 2346.4 + 1992.234 = $8,668 Mil.
Gross Profit was 564.134 + 466.025 + 524.279 + 456.19 = $2,011 Mil.
Total Current Assets was $5,007 Mil.
Total Assets was $5,854 Mil.
Property, Plant and Equipment(Net PPE) was $503 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General, & Admin. Expense(SGA) was $539 Mil.
Total Current Liabilities was $850 Mil.
Long-Term Debt & Capital Lease Obligation was $1,597 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(29.007 / 9672.663) / (24.484 / 8667.919)
=0.00299886 / 0.00282467
=1.0617

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2010.628 / 8667.919) / (2632.582 / 9672.663)
=0.23196202 / 0.27216724
=0.8523

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4307.077 + 609.422) / 5287.699) / (1 - (5007.09 + 502.904) / 5854.436)
=0.07020067 / 0.05883436
=1.1932

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=9672.663 / 8667.919
=1.1159

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(20.776 / (20.776 + 502.904)) / (18.416 / (18.416 + 609.422))
=0.03967308 / 0.02933241
=1.3525

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(592.669 / 9672.663) / (538.99 / 8667.919)
=0.06127258 / 0.06218217
=0.9854

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1003.096 + 853.818) / 5287.699) / ((1596.689 + 850.016) / 5854.436)
=0.35117619 / 0.41792326
=0.8403

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1526.076 - 4.273 - 1168.579) / 5287.699
=0.0668

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

NVR has a M-score of -1.91 suggests that the company is unlikely to be a manipulator.


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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