KB HOME (KBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBH - US48666K1097 - Common Stock
56.66 USD
+0.25 (+0.44%)
We assign a fundamental rating of 5 out of 10 to KBH. KBH was compared to 60 industry peers in the Household Durables industry. Both the profitability and the financial health of KBH get a neutral evaluation. Nothing too spectacular is happening here. KBH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KBH was profitable.
KBH had a positive operating cash flow in the past year.
KBH had positive earnings in 4 of the past 5 years.
In multiple years KBH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.36%, KBH is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.18%, KBH is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
The Return On Invested Capital of KBH (8.28%) is comparable to the rest of the industry.
KBH had an Average Return On Invested Capital over the past 3 years of 11.76%. This is above the industry average of 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 13.18% | ||
| ROIC | 8.28% |
ROA(3y)10.13%
ROA(5y)9.11%
ROE(3y)17.86%
ROE(5y)16.65%
ROIC(3y)11.76%
ROIC(5y)10.39%
1.3 Margins
Looking at the Profit Margin, with a value of 7.86%, KBH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
KBH's Profit Margin has improved in the last couple of years.
KBH has a Operating Margin of 9.71%. This is in the better half of the industry: KBH outperforms 63.33% of its industry peers.
KBH's Operating Margin has improved in the last couple of years.
KBH has a worse Gross Margin (19.96%) than 75.00% of its industry peers.
KBH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.71% | ||
| PM (TTM) | 7.86% | ||
| GM | 19.96% |
OM growth 3Y-1.36%
OM growth 5Y8.57%
PM growth 3Y-1.51%
PM growth 5Y9.84%
GM growth 3Y-0.91%
GM growth 5Y2.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KBH is creating some value.
KBH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.60 indicates that KBH is not in any danger for bankruptcy at the moment.
KBH has a Altman-Z score (3.60) which is comparable to the rest of the industry.
KBH has a debt to FCF ratio of 5.56. This is a neutral value as KBH would need 5.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.56, KBH is in line with its industry, outperforming 51.67% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that KBH is not too dependend on debt financing.
KBH has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.95
WACC8.68%
2.3 Liquidity
KBH has a Current Ratio of 6.01. This indicates that KBH is financially healthy and has no problem in meeting its short term obligations.
KBH has a better Current ratio (6.01) than 78.33% of its industry peers.
KBH has a Quick Ratio of 6.01. This is a bad value and indicates that KBH is not financially healthy enough and could expect problems in meeting its short term obligations.
KBH has a worse Quick ratio (0.67) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.01 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for KBH have decreased strongly by -23.02% in the last year.
KBH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.81% yearly.
EPS 1Y (TTM)-23.02%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.28%
3.2 Future
Based on estimates for the next years, KBH will show a decrease in Earnings Per Share. The EPS will decrease by -2.68% on average per year.
The Revenue is expected to grow by 0.39% on average over the next years.
EPS Next Y-20.15%
EPS Next 2Y-0.3%
EPS Next 3Y-2.68%
EPS Next 5YN/A
Revenue Next Year-8.53%
Revenue Next 2Y-1.79%
Revenue Next 3Y0.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.69, the valuation of KBH can be described as reasonable.
Based on the Price/Earnings ratio, KBH is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. KBH is valued rather cheaply when compared to this.
KBH is valuated reasonably with a Price/Forward Earnings ratio of 10.88.
KBH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KBH is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KBH to the average of the S&P500 Index (23.13), we can say KBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 10.88 |
4.2 Price Multiples
61.67% of the companies in the same industry are more expensive than KBH, based on the Enterprise Value to EBITDA ratio.
KBH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KBH is cheaper than 78.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
KBH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as KBH's earnings are expected to decrease with -2.68% in the coming years.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-0.3%
EPS Next 3Y-2.68%
5. Dividend
5.1 Amount
KBH has a Yearly Dividend Yield of 1.74%.
KBH's Dividend Yield is a higher than the industry average which is at 1.23.
KBH's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of KBH grows each year by 34.29%, which is quite nice.
KBH has paid a dividend for at least 10 years, which is a reliable track record.
KBH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)34.29%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
KBH pays out 13.77% of its income as dividend. This is a sustainable payout ratio.
DP13.77%
EPS Next 2Y-0.3%
EPS Next 3Y-2.68%
NYSE:KBH (1/2/2026, 10:06:00 AM)
56.66
+0.25 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.04%
Inst Owner Change-1.12%
Ins Owners3.71%
Ins Owner Change-0.53%
Market Cap3.67B
Revenue(TTM)N/A
Net Income(TTM)514.46M
Analysts64
Price Target65.38 (15.39%)
Short Float %10.36%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.92
Dividend Growth(5Y)34.29%
DP13.77%
Div Incr Years2
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.01%
Min EPS beat(2)1.56%
Max EPS beat(2)6.46%
EPS beat(4)3
Avg EPS beat(4)0.82%
Min EPS beat(4)-6.73%
Max EPS beat(4)6.46%
EPS beat(8)6
Avg EPS beat(8)4.88%
EPS beat(12)9
Avg EPS beat(12)9.9%
EPS beat(16)12
Avg EPS beat(16)8.75%
Revenue beat(2)2
Avg Revenue beat(2)0.8%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)1.03%
Revenue beat(8)5
Avg Revenue beat(8)-0.27%
Revenue beat(12)8
Avg Revenue beat(12)2.37%
Revenue beat(16)9
Avg Revenue beat(16)1.23%
PT rev (1m)-2.3%
PT rev (3m)0.72%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-6.68%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 10.88 | ||
| P/S | 0.56 | ||
| P/FCF | 10.49 | ||
| P/OCF | 9.3 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)6.52
EY11.51%
EPS(NY)5.21
Fwd EY9.19%
FCF(TTM)5.4
FCFY9.53%
OCF(TTM)6.09
OCFY10.75%
SpS101.02
BVpS60.26
TBVpS60.26
PEG (NY)N/A
PEG (5Y)0.55
Graham Number94.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 13.18% | ||
| ROCE | 10.78% | ||
| ROIC | 8.28% | ||
| ROICexc | 8.77% | ||
| ROICexgc | 8.85% | ||
| OM | 9.71% | ||
| PM (TTM) | 7.86% | ||
| GM | 19.96% | ||
| FCFM | 5.35% |
ROA(3y)10.13%
ROA(5y)9.11%
ROE(3y)17.86%
ROE(5y)16.65%
ROIC(3y)11.76%
ROIC(5y)10.39%
ROICexc(3y)12.99%
ROICexc(5y)11.48%
ROICexgc(3y)13.14%
ROICexgc(5y)11.64%
ROCE(3y)15.32%
ROCE(5y)13.54%
ROICexgc growth 3Y-0.18%
ROICexgc growth 5Y10.13%
ROICexc growth 3Y-0.09%
ROICexc growth 5Y10.42%
OM growth 3Y-1.36%
OM growth 5Y8.57%
PM growth 3Y-1.51%
PM growth 5Y9.84%
GM growth 3Y-0.91%
GM growth 5Y2.86%
F-Score4
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.56 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 122.6% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.72% | ||
| Profit Quality | 67.99% | ||
| Current Ratio | 6.01 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.6 |
F-Score4
WACC8.68%
ROIC/WACC0.95
Cap/Depr(3y)114.28%
Cap/Depr(5y)116.39%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.63%
Profit Quality(3y)81.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.02%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-23.81%
EPS Next Y-20.15%
EPS Next 2Y-0.3%
EPS Next 3Y-2.68%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.28%
Revenue Next Year-8.53%
Revenue Next 2Y-1.79%
Revenue Next 3Y0.39%
Revenue Next 5YN/A
EBIT growth 1Y-14.11%
EBIT growth 3Y5.13%
EBIT growth 5Y18.09%
EBIT Next Year-16.32%
EBIT Next 3Y-10.59%
EBIT Next 5Y-4.92%
FCF growth 1Y-69.37%
FCF growth 3YN/A
FCF growth 5Y8.96%
OCF growth 1Y-66.57%
OCF growth 3YN/A
OCF growth 5Y7.64%
KB HOME / KBH FAQ
What is the ChartMill fundamental rating of KB HOME (KBH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KBH.
What is the valuation status for KBH stock?
ChartMill assigns a valuation rating of 6 / 10 to KB HOME (KBH). This can be considered as Fairly Valued.
How profitable is KB HOME (KBH) stock?
KB HOME (KBH) has a profitability rating of 6 / 10.
How financially healthy is KB HOME?
The financial health rating of KB HOME (KBH) is 5 / 10.
Can you provide the expected EPS growth for KBH stock?
The Earnings per Share (EPS) of KB HOME (KBH) is expected to decline by -20.15% in the next year.