NVR (NVR) Margin Compression To 13.5% Challenges Long Term Earnings Growth Narrative

Simply Wall St.01-29

NVR (NVR) has just posted its FY 2025 third quarter numbers, with revenue of US$2.6b and basic EPS of US$119.26, set against a trailing 12 month EPS of US$484.98 and revenue of US$10.6b. Over recent ...

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Over recent ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-durables/nyse-nvr/nvr/news/nvr-nvr-margin-compression-to-135-challenges-long-term-earni\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>NVR (NVR) Margin Compression To 13.5% Challenges Long Term Earnings Growth Narrative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNVR (NVR) Margin Compression To 13.5% Challenges Long Term Earnings Growth Narrative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-29 07:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-durables/nyse-nvr/nvr/news/nvr-nvr-margin-compression-to-135-challenges-long-term-earni><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NVR (NVR) has just posted its FY 2025 third quarter numbers, with revenue of US$2.6b and basic EPS of US$119.26, set against a trailing 12 month EPS of US$484.98 and revenue of US$10.6b. Over recent ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-durables/nyse-nvr/nvr/news/nvr-nvr-margin-compression-to-135-challenges-long-term-earni\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NVR","symbol_name":"NVR Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-durables/nyse-nvr/nvr/news/nvr-nvr-margin-compression-to-135-challenges-long-term-earni","article_id":"2607779997","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4113000-choice2-main-header/1585186663126"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-durables/nyse-nvr/nvr/news/nvr-nvr-margin-compression-to-135-challenges-long-term-earni","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2607779997","pubTimestamp":1769643225,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"NVR (NVR) has just posted its FY 2025 third quarter numbers, with revenue of US$2.6b and basic EPS of US$119.26, set against a trailing 12 month EPS of US$484.98 and revenue of US$10.6b. Over recent quarters, revenue has moved from US$2.6b in Q2 2025 and US$2.4b in Q1 2025, alongside basic EPS of US$114.52 and US$100.41 respectively. This gives investors a clear read on the run rate as they weigh the latest figures against a net profit margin that has eased from 15.9% to 13.5% over the past...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NVR":"NVR Inc"},"translate_title":"NVR(NVR)利润率压缩至13.5%挑战长期盈利增长叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NVR":1.5},"content_text":"NVR (NVR) has just posted its FY 2025 third quarter numbers, with revenue of US$2.6b and basic EPS of US$119.26, set against a trailing 12 month EPS of US$484.98 and revenue of US$10.6b. Over recent quarters, revenue has moved from US$2.6b in Q2 2025 and US$2.4b in Q1 2025, alongside basic EPS of US$114.52 and US$100.41 respectively. This gives investors a clear read on the run rate as they weigh the latest figures against a net profit margin that has eased from 15.9% to 13.5% over the past year. See our full analysis for NVR. With the headline numbers on the table, the next step is to see how this softer margin profile and recent earnings pattern line up with the widely followed narratives around NVR's long term profit trajectory. Curious how numbers become stories that shape markets? Explore Community Narratives NYSE:NVR Earnings & Revenue History as at Jan 2026 AdvertisementMargins Ease From 15.9% To 13.5%  NVR's trailing 12 month net profit margin sits at 13.5%, compared with 15.9% a year earlier, alongside trailing net income of about US$1.4b on US$10.6b of revenue. Critics highlight this margin compression as a bearish sign, and the trailing 12 month figures give that concern something concrete to point to:\n     The shift from a 15.9% net margin to 13.5% pairs with trailing net income of US$1,433.4 million, which is lower than the prior year's US$1,681.9 million on a similar revenue base. Over the past five years, earnings grew about 8% per year, so the recent margin and earnings softness sits in contrast to that multi year track record and feeds a more cautious narrative.    Five Year EPS Growth Vs Recent Soft Patch  Over the last five years, earnings grew around 8% per year, yet the latest trailing 12 month EPS of US$484.98 is below the prior trailing figure of US$540.88, showing a weaker recent patch against that backdrop. Bulls often lean on that 8% multi year earnings growth rate, and the current numbers both support and complicate that bullish angle:\n     The current run rate in FY 2025, with quarterly basic EPS of US$100.41, US$114.52 and US$119.26, still adds up to a high absolute level of profit and lines up with a long period of growth. At the same time, the step down from a trailing EPS of US$540.88 to US$484.98 indicates the most recent year did not follow the earlier growth trend and gives bullish investors something they need to reconcile.    P/E Premium To Peers, DCF Gap  NVR trades on a P/E of 15.1x at a share price of US$7,626.08, above the US Consumer Durables industry average of 11.2x and peer average of 14.1x, and above a DCF fair value of about US$7,010.07. What stands out for cautious investors is how these valuation markers line up with the recent earnings pattern:\n     The stock changes hands at a premium to its industry and peer P/Es, even as trailing EPS has eased from US$540.88 to US$484.98 and net margin has moved from 15.9% to 13.5%. The current price sits above the DCF fair value estimate of US$7,010.07, which some bearish views use to argue that the market is already paying up despite the softer recent profit metrics.    To see how these mixed signals fit into a fuller story on growth, risks, and valuation, you can step through the broader narrative and see which parts of NVR's profile matter most right now. 📊 Read the full NVR Consensus Narrative.  Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on NVR's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. See What Else Is Out There NVR's softer net margins, step down in trailing EPS and P/E premium to peers raise questions about how much investors are currently paying for this earnings profile. If that mix makes you cautious about paying up for similar stories, check out these 876 undervalued stocks based on cash flows to focus on companies where prices look more grounded in current cash flows.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if NVR might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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