NVR Gross Margin Analysis
Updated 1035h ago·SEC filings & market data
Key Takeaway
Gross margin is the share of revenue left after subtracting direct production costs, and at 21.0%, it leaves a relatively thin buffer for operating expenses.
Sector Performance
14th percentileNVR
21.0%
Sector Median
47.4%
Sector Avg
48.1%
Prior Period
21.8%(Aug 2026)
Deep Analysis
Gross margin is the share of revenue left after subtracting direct production costs, and at 21.0%, it leaves a relatively thin buffer for operating expenses.
This is well below the sector median of 46.4%, placing NVR in the 15th percentile among peers. Trend data is sparse: year-over-year change is N/A, while quarter-over-quarter change is -3.7% as the margin fell from 21.8% to 21.0%. The combination of a low level and a recent sequential decline points to possible margin pressure, which raises downside risk if the slide continues. However, with only two historical values, the trend is not firmly established. This metric leans negative and therefore contradicts the overall NEUTRAL verdict, though the limited history limits its weight.
Frequently Asked Questions
What does the Gross Margin tell investors about NVR?
Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
How is the Gross Margin calculated?
Gross Margin is calculated as: Gross Profit / Revenue.
Learn More About Gross Margin
The Formula
Gross Profit / Revenue
Why It Matters
Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
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21.0%
Sector Median
47.4%
Sector Avg
48.1%
How NVR's Gross Margin compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.