Forensic Analysis · Homebuilders & Residential Construction · as of Nov 9, 2026
NVR Inc (NVR)
A forensic read on NVR Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Not computable
Earnings quality
3
Forensic signals
33.2%
ROE
-1.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
NVR Inc earns a C (Mixed — selective) forensic quality grade. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+21.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +21.0% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 13% of net operating assets, against an accruals ratio of 21.0%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
167% of FCF
FY2025
Shareholder returns.Returned $1.8B to shareholders (buybacks + dividends) in FY2025 — 167% of free cash flow. That is $737M (67%) more than free cash flow covered, and more than operating cash flow as well. It came out of the balance sheet's own liquid holdings, not new debt: cash fell $708M over FY2025. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $69M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 173%.
0.87×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.87× cumulative net income. Cash is lagging reported profit. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
Key fundamentals
Latest Revenue$10.32B
Revenue Growth YoY-1.9%
Revenue CAGR (2yr)+4.1%
Net Margin13.0%
Free Cash Flow$1.10B
Return on Equity33.2%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from NVR Inc's actual 10-K/10-Q/8-K filings?