NVRNEUTRAL

Return on Equity (ROE)

33.3%

Updated 222h ago

Sector Performance

83th percentile

NVR

33.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholder equity — 33.3% means it earns $33.30 in net income for each $100 of equity.

This exceeds the sector median of 13.8% and places the company in the 83rd percentile among sector peers, indicating above-average profitability. Trend data is not available (N/A) for year-over-year change, quarter-over-quarter change, or the last eight quarters, as only a single historical value of 33.3% is provided. The combination of a high ROE level with no trend history suggests a strong current performance but offers no insight into direction or stability, limiting risk assessment. This high ROE supports a positive view of the company’s capital efficiency, but it contradicts the overall NEUTRAL verdict only if other factors are neutral to negative.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NVR?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NVR's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.