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The Company's primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings.
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b15184 (99.49) Submitted: 4/14/07 12:10 PM : Start Price: $695.50 NVR Score: -2.10
This Homebuilder is currently selling at about 3x book value while other homebuilders are in the 1x range or lower. It is operating in better markets than most of the other homebuilders (Atlantic Seaboard, primarily) so it has not had the dramatic revenue slowdown that the others like KB Homes have experienced. However, the lousy Housing market fundamentals that plague other homebuilders will eventually catch up with NVR. These include: high inventories, tightening of mortgage lending standards, and the overall lack of first-time buyers due to prior lax lending standards. Currently selling at $700/share, I look for it to be down around $400 by EOY 2007.
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