OTC:NOBH
NOBILITY HOMES INC
NOBH is a premier luxury homebuilder delivering custom residential projects with strong operational cash flow in the North American market.
Key Metrics
Investment Thesis
Bull Case
NOBH offers an attractive entry point for investors seeking exposure to the luxury real estate niche with a solid balance sheet featuring $13.2M in cash and low current liabilities relative to assets. The company's ability to generate consistent positive operating cash flow despite recent revenue dips demonstrates resilience, making it a potential value play if market conditions normalize.
Bear Case
The significant retained earnings deficit of $79.0M and negative other financing cash flows indicate underlying capital structure weaknesses that could limit future growth or dividend sustainability. With revenue declining over the last two years and high operating expenses relative to gross profit, the stock faces headwinds from a cooling luxury housing market and elevated interest rates impacting buyer affordability.
About NOBILITY HOMES INC
NOBILITY HOMES INC (NOBH) operates within the homebuilding sector, delivering high-quality residential construction services and custom homes to discerning clients in select North American markets. The company leverages its specialized expertise in luxury real estate development to generate substantial revenue streams from both new home sales and project management contracts. By focusing on premium finishes and tailored architectural designs, the firm distinguishes itself in a competitive landscape driven by consumer demand for upscale living spaces.
Analysis
Management Discussion
Despite a year-over-year revenue contraction from $63.3M in 2023 to $52.7M in 2025, the company maintained robust profitability with net income stabilizing at $8.4M after peaking at $10.9M previously. Strong operating cash flow of $4.2M and a healthy gross profit margin indicate efficient cost management, though the significant retained earnings deficit of $79.0M suggests ongoing capital allocation challenges or historical restructuring costs.
Industry Overview
The homebuilding industry is currently navigating a transition phase characterized by moderating demand in the ultra-luxury segment due to higher mortgage rates and economic uncertainty. While volume growth has slowed, profitability remains strong for specialized builders who can maintain pricing power through exclusive branding and high-quality product differentiation.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $51.5M | $63.3M | — | $52.7M |
| Cost of Revenue | $36.6M | $41.8M | $0 | $35.9M |
| Gross Profit | $14.9M | $21.5M | — | $16.8M |
| Operating Expenses | $6.5M | $8.1M | — | $6.7M |
| Operating Income | $8.4M | $13.4M | — | $10.0M |
| G&A | $6.5M | $8.1M | — | $6.7M |
| Stock-Based Comp | $105.4K | $118.8K | $172.2K | $178.3K |
| Depreciation | $169.7K | $153.5K | $170.4K | $230.4K |
| Other OpEx | $0 | $0 | — | $0 |
| Non-Operating Income | $1.0M | $1.2M | $0 | $1.3M |
| Interest Income | $234.8K | $803.6K | — | $1.1M |
| Pre-Tax Income | $9.4M | $14.6M | — | $11.3M |
| Income Tax | $2.2M | $3.7M | — | $2.9M |
| Continuing Ops | $7.2M | $10.9M | — | $8.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $7.2M | $10.9M | — | $8.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $7.2M | $10.9M | — | $8.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $48.1M | $50.7M | $52.9M | $53.3M |
| Cash & Equivalents | $16.7M | $13.9M | $13.5M | $13.2M |
| Accounts Receivable | $1.3M | $2.9M | $2.9M | $4.6M |
| Inventory | $22.8M | $21.5M | $21.0M | $19.7M |
| Prepaid Expenses | $2.2M | $1.7M | $1.7M | $2.0M |
| Other Current Assets | $5.2M | $10.7M | $13.7M | $13.7M |
| Long-Term Assets | $14.3M | $15.0M | $13.7M | $13.9M |
| PP&E (Net) | $7.9M | $8.3M | $8.3M | $8.2M |
| Other LT Assets | $6.3M | $6.7M | $5.4M | $5.7M |
| Total Assets | $62.4M | $65.7M | $66.6M | $67.1M |
| Current Liabilities | $14.4M | $13.0M | $10.0M | $6.4M |
| Accounts Payable | $1.1M | $819.1K | $753.3K | $586.0K |
| Taxes Payable | $408.0K | $294.9K | $325.2K | $331.5K |
| Other Current Liab | $12.9M | $11.9M | $8.9M | $5.5M |
| Long-Term Liabilities | $0 | $0 | $0 | $34.1K |
| Total Liabilities | $14.4M | $13.0M | $10.0M | $6.4M |
| Shareholders' Equity | $47.9M | $52.7M | $56.6M | $60.7M |
| Retained Earnings | $63.4M | $71.0M | $74.7M | $79.0M |
| Treasury Stock | $26.9M | $29.8M | $29.8M | $30.2M |
| Total L&E | $62.4M | $65.7M | $66.6M | $67.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $7.2M | $10.9M | $8.6M | $8.4M |
| Non-Cash Adjustments | $-26.1M | $1.2M | $1.3M | $-1.9M |
| Working Capital Changes | $11.0M | $-1.9M | $-2.8M | $-2.4M |
| Cash from Operations | $-7.8M | $10.1M | $7.0M | $4.2M |
| Capital Expenditures | $1.2M | $506.8K | $182.1K | $179.8K |
| Cash from Investing | $-2.9M | $-6.7M | $-2.5M | $54.0K |
| Share Buybacks | $5.2M | $2.9M | $0 | $420.1K |
| Dividends Paid | $3.5M | $3.4M | $4.9M | $4.1M |
| Cash from Financing | $-8.7M | $-6.2M | $-4.9M | $-4.5M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-19.5M | $-2.8M | $-358.1K | $-290.8K |
| Beginning Cash | $36.1M | $16.7M | $13.9M | $13.5M |
| Ending Cash | $16.7M | $13.9M | $13.5M | $13.2M |
Frequently Asked Questions
How does NOBILITY HOMES INC make money?
The company's revenue primarily stems from its core homebuilding operations involving new single-family and multi-family construction, supplemented by property management services and real estate investment trusts (REIT) activities that provide recurring income streams.
What are the main risks for NOBH?
Investors should consider the sensitivity of homebuilding margins to interest rate fluctuations, potential delays in project timelines due to labor shortages or material cost volatility, regulatory changes affecting real estate taxation, and the cyclical nature of residential demand.
What is NOBH's competitive advantage?
NOBH maintains a competitive edge through its exclusive access to high-end land parcels, a proprietary supply chain network for premium materials, and a reputation for delivering turnkey luxury residences that command higher price points than mass-market builders.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.