NVRNEUTRAL

NVR Return on Equity (ROE) Analysis

31.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

A 31.5% Return on Equity (ROE) means that for every dollar of shareholder equity, the company generates $0.315 in profit, measuring how efficiently it uses investor capital.

Sector Performance

83th percentile

NVR

31.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

33.3%(Jul 2026)

↓ Declining

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Deep Analysis

A 31.5% Return on Equity (ROE) means that for every dollar of shareholder equity, the company generates $0.315 in profit, measuring how efficiently it uses investor capital.

This is well above the sector median of 13.5%, placing NVR in the 83rd percentile among its peers, indicating above-average profitability. The trend is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 31.5% are provided. The strong ROE level suggests efficient capital use, but the absence of trend data leaves the sustainability of this performance unverified, creating uncertainty about future risk. For an investor, the high level is a positive signal, yet the missing trajectory makes it hard to judge whether this is improving, stable, or deteriorating. This metric supports the overall NEUTRAL verdict: the high ROE justifies attention, but the lack of trend information prevents a more favorable rating.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.