Feb. 23 at 7:38 PM
$CRMD
While I'm wish fulfillment vibe.
NVR, Inc. used buybacks to become one of the best-performing stocks of the last 30 years.
(1) Phenomenal Returns: Since the 1990s, NVR has seen a total shareholder return (TSR) exceeding 40,000%, driven largely by their relentless share cannibalisation.
(2) Consistent Buyback Levels: NVR consistently dedicated nearly all free cash flow to repurchases, often reducing their share count by 3% to 5% annually for decades.
(3) Asset-Light/High Margin: By using land options rather than buying land (Asset-Light), they maintained Operating Margins consistently in the 15-20% range with industry-leading ROE.
The CRMD Parallel:
By prioritising a licensing-heavy model over traditional, capital-intensive R&D pipelines, CRMD can mirror NVR’s "land-option" strategy. This keeps the balance sheet lean while the superior margins (potential for 30%+) fund a consistent buyback program that compounds EPS regardless of broader market volatility.
