KB HOME (KBH) Stock Fundamental Analysis
NYSE:KBH - New York Stock Exchange, Inc. - US48666K1097 - Common Stock - Currency: USD
Taking everything into account, KBH scores 5 out of 10 in our fundamental rating. KBH was compared to 64 industry peers in the Household Durables industry. KBH has only an average score on both its financial health and profitability. KBH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KBH had positive earnings in the past year.
KBH had a negative operating cash flow in the past year.
Each year in the past 5 years KBH has been profitable.
Of the past 5 years KBH 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.90%, KBH is doing good in the industry, outperforming 68.75% of the companies in the same industry.
KBH's Return On Equity of 15.18% is fine compared to the rest of the industry. KBH outperforms 67.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.83%, KBH is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KBH is in line with the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 15.18% | ||
| ROIC | 9.83% |
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
KBH's Profit Margin of 9.07% is fine compared to the rest of the industry. KBH outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of KBH has grown nicely.
KBH has a Operating Margin of 11.00%. This is in the better half of the industry: KBH outperforms 65.63% of its industry peers.
In the last couple of years the Operating Margin of KBH has grown nicely.
KBH's Gross Margin of 21.03% is on the low side compared to the rest of the industry. KBH is outperformed by 73.44% of its industry peers.
KBH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 9.07% | ||
| GM | 21.03% |
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
KBH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, KBH has less shares outstanding
The number of shares outstanding for KBH has been reduced compared to 5 years ago.
The debt/assets ratio for KBH has been reduced compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.44 indicates that KBH is not too dependend on debt financing.
KBH has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: KBH outperforms 42.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC9.34%
2.3 Liquidity
A Current Ratio of 5.99 indicates that KBH has no problem at all paying its short term obligations.
KBH has a better Current ratio (5.99) than 81.25% of its industry peers.
KBH has a Quick Ratio of 5.99. This is a bad value and indicates that KBH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KBH (0.56) is worse than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.99 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for KBH have decreased by -0.13% in the last 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.
Measured over the past years, KBH shows a quite strong growth in Revenue. The Revenue has been growing by 8.77% on average per year.
EPS 1Y (TTM)-0.13%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-30.23%
Revenue 1Y (TTM)8.1%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-10.54%
3.2 Future
KBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.36% yearly.
KBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.53% yearly.
EPS Next Y-16.38%
EPS Next 2Y-6.06%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue Next Year-5.14%
Revenue Next 2Y-3.47%
Revenue Next 3Y0.53%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.17, the valuation of KBH can be described as very cheap.
Based on the Price/Earnings ratio, KBH is valued cheaper than 82.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of KBH to the average of the S&P500 Index (27.45), we can say KBH is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.24, the valuation of KBH can be described as very cheap.
KBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBH is cheaper than 87.50% of the companies in the same industry.
KBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
KBH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KBH is cheaper than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
The decent profitability rating of KBH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-6.06%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
KBH has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
KBH's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to the average S&P500 Dividend Yield of 2.42, KBH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
On average, the dividend of KBH grows each year by 34.29%, which is quite nice.
KBH has been paying a dividend for at least 10 years, so it has a reliable track record.
KBH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)34.29%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
KBH pays out 11.99% of its income as dividend. This is a sustainable payout ratio.
KBH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.99%
EPS Next 2Y-6.06%
EPS Next 3Y1.36%
54.15
-1.59 (-2.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners102.85%
Inst Owner Change-4.7%
Ins Owners3.38%
Ins Owner Change7.46%
Market Cap3.88B
Analysts64.21
Price Target66.95 (23.64%)
Short Float %7.25%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend0.92
Dividend Growth(5Y)34.29%
DP11.99%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.37%
Min EPS beat(2)-6.73%
Max EPS beat(2)1.99%
EPS beat(4)2
Avg EPS beat(4)2.93%
Min EPS beat(4)-6.73%
Max EPS beat(4)18.2%
EPS beat(8)6
Avg EPS beat(8)12.49%
EPS beat(12)9
Avg EPS beat(12)10.95%
EPS beat(16)11
Avg EPS beat(16)8.92%
Revenue beat(2)0
Avg Revenue beat(2)-4.21%
Min Revenue beat(2)-8.07%
Max Revenue beat(2)-0.35%
Revenue beat(4)2
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)2.51%
Revenue beat(8)5
Avg Revenue beat(8)3.15%
Revenue beat(12)7
Avg Revenue beat(12)2.37%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)-0.28%
PT rev (3m)-12.39%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-8.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-8.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)7.55
EY13.94%
EPS(NY)7.47
Fwd EY13.8%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)0
OCFYN/A
SpS95.55
BVpS57.06
TBVpS57.06
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 15.18% | ||
| ROCE | 12.81% | ||
| ROIC | 9.83% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 10.49% | ||
| OM | 11% | ||
| PM (TTM) | 9.07% | ||
| GM | 21.03% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-0.18%
ROICexcg 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-Score3
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 111.77% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.99 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | N/A |
F-Score3
WACC9.34%
ROIC/WACC1.05
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)-0.13%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-30.23%
EPS Next Y-16.38%
EPS Next 2Y-6.06%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue 1Y (TTM)8.1%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-10.54%
Revenue Next Year-5.14%
Revenue Next 2Y-3.47%
Revenue Next 3Y0.53%
Revenue Next 5YN/A
EBIT growth 1Y1.36%
EBIT growth 3Y5.13%
EBIT growth 5Y18.09%
EBIT Next Year0.49%
EBIT Next 3Y3.71%
EBIT Next 5YN/A
FCF growth 1Y-108.5%
FCF growth 3YN/A
FCF growth 5Y8.96%
OCF growth 1Y-100.02%
OCF growth 3YN/A
OCF growth 5Y7.64%