KB HOME (KBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KBH - US48666K1097 - Common Stock
57.19 USD
-0.87 (-1.5%)
57.19 USD
0 (0%)
KBH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. KBH has only an average score on both its financial health and profitability. KBH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KBH had positive earnings in the past year.
KBH had a positive operating cash flow in the past year.
Of the past 5 years KBH 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: KBH reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of KBH (7.36%) is better than 68.33% of its industry peers.
The Return On Equity of KBH (13.18%) is better than 61.67% of its industry peers.
The Return On Invested Capital of KBH (8.28%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KBH is above the industry average of 9.69%.
| 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
With a decent Profit Margin value of 7.86%, KBH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of KBH has grown nicely.
KBH's Operating Margin of 9.71% is fine compared to the rest of the industry. KBH outperforms 63.33% of its industry peers.
KBH's Operating Margin has improved in the last couple of years.
The Gross Margin of KBH (19.96%) is worse than 75.00% of its industry peers.
In the last couple of years the Gross Margin of KBH has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KBH is still 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 3.62 indicates that KBH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.62, KBH is in line with its industry, outperforming 58.33% of the companies in the same 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.
KBH's Debt to FCF ratio of 5.56 is in line compared to the rest of the industry. KBH outperforms 51.67% of its industry peers.
KBH has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.62 |
ROIC/WACC0.97
WACC8.55%
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.
With a decent Current ratio value of 6.01, KBH is doing good in the industry, outperforming 78.33% of the companies in the same industry.
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.
With a Quick ratio value of 0.67, KBH is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.01 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
KBH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.02%.
Measured over the past years, KBH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.81% on average per year.
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.
KBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.39% yearly.
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
With a Price/Earnings ratio of 8.77, the valuation of KBH can be described as very reasonable.
Based on the Price/Earnings ratio, KBH is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of KBH to the average of the S&P500 Index (27.17), we can say KBH is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.99, the valuation of KBH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, KBH is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. KBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
KBH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, KBH is valued a bit cheaper than the industry average as 78.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.59 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
The decent profitability rating of KBH may justify a higher PE ratio.
KBH's earnings are expected to decrease with -2.68% in the coming years. This may justify a cheaper valuation.
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 1.77%.
Compared to an average industry Dividend Yield of 1.23, KBH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, KBH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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
13.77% of the earnings are spent on dividend by KBH. This is a low number and sustainable payout ratio.
DP13.77%
EPS Next 2Y-0.3%
EPS Next 3Y-2.68%
57.19
-0.87 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.02%
Inst Owner Change0%
Ins Owners3.71%
Ins Owner Change-0.53%
Market Cap3.70B
Revenue(TTM)N/A
Net Income(TTM)514.46M
Analysts64
Price Target65.38 (14.32%)
Short Float %10.36%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-4.21%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 10.99 | ||
| P/S | 0.57 | ||
| P/FCF | 10.59 | ||
| P/OCF | 9.39 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 8 |
EPS(TTM)6.52
EY11.4%
EPS(NY)5.21
Fwd EY9.1%
FCF(TTM)5.4
FCFY9.44%
OCF(TTM)6.09
OCFY10.65%
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 | 3.62 |
F-Score4
WACC8.55%
ROIC/WACC0.97
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.