KB HOME (NYSE:KBH) is an undervalued gem with solid fundamentals.

Uncover the hidden value in KB HOME (NYSE:KBH) as our stock screening tool recommends it as an undervalued choice. KBH maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis for KBH

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. KBH boasts a 7 out of 10:

• A Price/Earnings ratio of 6.21 indicates a rather cheap valuation of KBH.
• Compared to the rest of the industry, the Price/Earnings ratio of KBH indicates a rather cheap valuation: KBH is cheaper than 82.81% of the companies listed in the same industry.
• KBH is valuated cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 6.20, the valuation of KBH can be described as very cheap.
• 81.25% of the companies in the same industry are more expensive than KBH, based on the Price/Forward Earnings ratio.
• KBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.09.
• 70.31% of the companies in the same industry are more expensive than KBH, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, KBH is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
• The decent profitability rating of KBH may justify a higher PE ratio.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, KBH has achieved a 6:

• KBH has a better Return On Assets (9.37%) than 68.75% of its industry peers.
• KBH's Return On Equity of 16.01% is fine compared to the rest of the industry. KBH outperforms 70.31% of its industry peers.
• KBH's Return On Invested Capital of 10.40% is fine compared to the rest of the industry. KBH outperforms 67.19% of its industry peers.
• Looking at the Profit Margin, with a value of 9.38%, KBH is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
• In the last couple of years the Profit Margin of KBH has grown nicely.
• With a decent Operating Margin value of 11.34%, KBH is doing good in the industry, outperforming 67.19% of the companies in the same industry.
• In the last couple of years the Operating Margin of KBH has grown nicely.
• In the last couple of years the Gross Margin of KBH has grown nicely.

Health Analysis for KBH

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. KBH has earned a 6 out of 10:

• An Altman-Z score of 3.73 indicates that KBH is not in any danger for bankruptcy at the moment.
• KBH's Altman-Z score of 3.73 is fine compared to the rest of the industry. KBH outperforms 62.50% of its industry peers.
• A Debt/Equity ratio of 0.42 indicates that KBH is not too dependend on debt financing.
• A Current Ratio of 5.74 indicates that KBH has no problem at all paying its short term obligations.
• The Current ratio of KBH (5.74) is better than 78.13% of its industry peers.

Exploring KBH's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. KBH has achieved a 5 out of 10:

• The Earnings Per Share has grown by an nice 11.56% over the past year.
• KBH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.25% yearly.
• Looking at the last year, KBH shows a quite strong growth in Revenue. The Revenue has grown by 8.10% in the last year.
• The Revenue has been growing by 8.77% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of KBH contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.