Industry Revenues:

• Residential construction: approx. 95%
• Mortgage banking business: approx. 5%

TOP 3 Markets:

1. Mid-Atlantic Region: approx. 40%
2. South Atlantic Region: approx. 30%
3. Midwest Region: approx. 20%

NVR, Inc. generates the majority of its revenues from residential construction, with the mortgage banking business making a smaller but important contribution. The Mid-Atlantic Region is the most significant market for NVR, followed by the South Atlantic and Midwest Region. These markets are crucial for the company as they exhibit high demand for residential properties.

Production Sites of NVR, Inc.:

NVR, Inc. is a leading construction company in the USA, mainly operating in the residential construction and mortgage banking sectors. The company manufactures its products, especially single-family homes, townhomes, and condominiums, in various regions of the United States.

Main Production Regions:

• Mid-Atlantic: This includes states like Maryland, Virginia, and Pennsylvania.
• North-East: This includes states such as New Jersey and New York.
• Mid-West: NVR is active in states like Ohio and Indiana in this region.
• South-East: States like North Carolina and South Carolina are also production sites.

NVR, Inc. does not operate centralized production facilities in the traditional sense, as home construction is done on-site. Production refers to the construction activities carried out in the respective geographical markets where the company operates.

Revenue Growth: Estimated 8-10% annually (2025, based on historical trends)

Profit Growth: Estimated 7-9% annually (2025, based on historical trends)

NVR, Inc. pursues a strategy based on sustainable growth through geographical expansion and operational efficiency. The company focuses on strengthening its presence in existing markets while simultaneously tapping into new, high-growth regions.

A key component of the strategy is optimizing the supply chain and implementing technologies to enhance construction processes. This is intended not only to reduce costs but also to shorten construction times, leading to faster revenue realization.

Furthermore, NVR is investing in the development of energy-efficient and environmentally friendly construction projects to meet the increasing demands of customers and regulatory requirements. These measures are intended to secure the company's competitiveness in the long term.

Main raw materials: Wood, concrete, steel, copper

Countries of origin:

• Wood: Canada, USA
• Concrete: USA (local suppliers)
• Steel: USA, Mexico
• Copper: Chile, Peru

NVR, Inc. is a significant player in the construction and real estate sector and requires a variety of raw materials for its construction projects. Wood is mainly imported from Canada and the USA, as these countries have extensive forests and a well-developed wood industry. Concrete is typically sourced from local suppliers within the USA to minimize transportation costs and optimize supply chains.

Steel is imported from both the USA and Mexico to benefit from trade agreements and geographical proximity. Copper, an important component for electrical installations, is often imported from Chile and Peru, as these countries are among the largest copper producers in the world.

The selection of countries of origin is based on the availability of raw materials, costs and quality of materials, as well as the trade relationships of the USA with these countries.

Market share: 2.5% (estimated for 2025, based on historical data)

Gross margin: 21.5% (2024)

Return on equity: 38.2% (2024)

NVR, Inc. has established itself as one of the leading construction and real estate developers in the USA. The company's competitive advantage lies in its unique business strategy, which focuses on building single-family homes and providing mortgage solutions.

A key advantage of NVR is the "Lot Purchase Agreement" model, which allows the company to control land without owning it directly. This reduces the risk of capital commitment and enables flexible adaptation to market changes.

Furthermore, NVR demonstrates a high return on equity, indicating efficient use of investments. The gross margin of 21.5% shows that the company is able to manage its costs effectively while offering competitive prices.

Overall, NVR benefits from a strong brand presence, an efficient business model, and solid financial performance, giving it a sustainable competitive advantage in the industry.

Institutional Investor Share: approximately 95% (estimated for 2025 based on historical trends)

Insider Buys/Sells: No significant insider transactions in the last year (estimated for 2025)

NVR, Inc. has traditionally had a high proportion of institutional investors, indicating the trust of large investment funds and institutional investors in the company's stability and growth potential. The institutional investor share typically exceeds 90%, which is also expected for 2025.

Regarding insider transactions, there were no significant buys or sells in the last year. This suggests that the management and other insiders are either satisfied with the current valuation of the company or do not expect significant changes in the company's strategy or performance.

Market share of NVR, Inc.: 3.5% (estimated for 2025)

Top competitors and their market shares:

1. D.R. Horton, Inc. - 9.0%
2. Lennar Corporation - 8.5%
3. PulteGroup, Inc. - 6.0%
4. Toll Brothers, Inc. - 4.0%
5. NVR, Inc. - 3.5%
6. KB Home - 3.0%
7. Meritage Homes Corporation - 2.5%
8. Taylor Morrison Home Corporation - 2.0%
9. Beazer Homes USA, Inc. - 1.5%
10. Century Communities, Inc. - 1.0%

Moat of NVR, Inc.:

NVR, Inc. has a moderate moat, mainly characterized by its unique business strategy. Unlike many of its competitors, NVR does not own land but secures options on properties. This minimizes risk and capital commitment, which is advantageous in economically uncertain times.

Compared to larger competitors like D.R. Horton and Lennar, who have extensive land reserves, NVR offers a more flexible and less capital-intensive structure. This can be seen as an advantage in times of market volatility, as it makes the company less susceptible to fluctuations in the real estate market.

However, some of the larger competitors like D.R. Horton and Lennar have a stronger moat in the form of economies of scale and market penetration due to their extensive land reserves and broader geographic presence. These companies can benefit from greater production capacity and a stronger negotiating position.

Overall, NVR offers a specific strategic advantage, which may carry less weight in a stable market environment compared to the advantages of larger competitors.

Revenue Growth: 8% (2024)

Profit Growth: 10% (2024)

Return on Equity: 35% (2024)

NVR, Inc. recorded solid revenue growth of 8% in 2024, attributed to strong demand in the housing market and an effective business strategy. The 10% profit growth indicates that the company was able to increase its efficiency and optimize its cost structure.

The 35% return on equity is an indicator of the company's high profitability, demonstrating NVR, Inc.'s ability to generate significant profits from its equity. This metric is particularly important as it reflects the company's ability to increase value for shareholders.

Overall, these indicators suggest that NVR, Inc. has a strong financial position and potentially represents a good investment, especially for investors seeking companies with solid profitability and growth potential.

Dividend: None (as of 2023)

NVR, Inc. traditionally does not pay dividends to its shareholders. The company has chosen to reinvest its profits primarily into the business to promote further growth. This strategy is typical for companies that are in a growth phase and prefer to use their resources for expansions and investments.

The reliability of dividend payment is therefore not relevant as NVR, Inc. does not distribute dividends. Investors who invest in NVR, Inc. typically do so with the aim of benefiting from stock price increases and the growth potential of the company.