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 63 industry peers in the Household Durables industry. KBH has an average financial health and profitability rating. KBH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KBH had positive earnings in the past year.
In the past year KBH had a positive cash flow from operations.
Each year in the past 5 years KBH has been profitable.
KBH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.00%, KBH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KBH's Return On Equity of 14.07% is fine compared to the rest of the industry. KBH outperforms 66.67% of its industry peers.
KBH has a Return On Invested Capital of 8.98%. This is in the better half of the industry: KBH outperforms 63.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBH is in line with the industry average of 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 14.07% | ||
| ROIC | 8.98% |
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 8.41%, KBH is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
KBH's Profit Margin has improved in the last couple of years.
KBH has a better Operating Margin (10.39%) than 61.90% of its industry peers.
In the last couple of years the Operating Margin of KBH has grown nicely.
KBH has a Gross Margin of 20.58%. This is in the lower half of the industry: KBH underperforms 76.19% of its industry peers.
In the last couple of years the Gross Margin of KBH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.39% | ||
| PM (TTM) | 8.41% | ||
| GM | 20.58% |
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.
The number of shares outstanding for KBH has been reduced compared to 1 year ago.
The number of shares outstanding for KBH has been reduced compared to 5 years ago.
KBH has a better debt/assets ratio than last year.
2.2 Solvency
KBH has an Altman-Z score of 3.68. This indicates that KBH is financially healthy and has little risk of bankruptcy at the moment.
KBH has a Altman-Z score of 3.68. This is in the better half of the industry: KBH outperforms 63.49% of its industry peers.
The Debt to FCF ratio of KBH is 29.32, which is on the high side as it means it would take KBH, 29.32 years of fcf income to pay off all of its debts.
KBH has a Debt to FCF ratio (29.32) which is in line with its industry peers.
A Debt/Equity ratio of 0.47 indicates that KBH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, KBH is in line with its industry, outperforming 41.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 29.32 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.22
WACC7.35%
2.3 Liquidity
A Current Ratio of 6.09 indicates that KBH has no problem at all paying its short term obligations.
KBH's Current ratio of 6.09 is amongst the best of the industry. KBH outperforms 80.95% of its industry peers.
A Quick Ratio of 0.65 indicates that KBH may have some problems paying its short term obligations.
KBH's Quick ratio of 0.65 is on the low side compared to the rest of the industry. KBH is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.09 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
KBH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.13%.
KBH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.25% yearly.
The Revenue has been growing slightly by 3.65% in the past year.
The Revenue has been growing by 8.77% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.13%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-30.23%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-10.54%
3.2 Future
Based on estimates for the next years, KBH will show a decrease in Earnings Per Share. The EPS will decrease by -3.30% on average per year.
Based on estimates for the next years, KBH will show a decrease in Revenue. The Revenue will decrease by -2.43% on average per year.
EPS Next Y-23.52%
EPS Next 2Y-12.44%
EPS Next 3Y-3.3%
EPS Next 5YN/A
Revenue Next Year-8.16%
Revenue Next 2Y-7.06%
Revenue Next 3Y-2.43%
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
The Price/Earnings ratio is 7.57, which indicates a rather cheap valuation of KBH.
KBH's Price/Earnings ratio is a bit cheaper when compared to the industry. KBH is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of KBH to the average of the S&P500 Index (26.82), we can say KBH is valued rather cheaply.
The Price/Forward Earnings ratio is 8.81, which indicates a very decent valuation of KBH.
Based on the Price/Forward Earnings ratio, KBH is valued a bit cheaper than 69.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KBH to the average of the S&P500 Index (36.21), we can say KBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBH is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as KBH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.28 | ||
| EV/EBITDA | 7.5 |
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 -3.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-12.44%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, KBH has a reasonable but not impressive dividend return.
KBH's Dividend Yield is a higher than the industry average which is at 3.35.
Compared to the average S&P500 Dividend Yield of 2.39, KBH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of KBH is nicely growing with an annual growth rate of 34.29%!
KBH has paid a dividend for at least 10 years, which is 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 12.99% of its income as dividend. This is a sustainable payout ratio.
DP12.99%
EPS Next 2Y-12.44%
EPS Next 3Y-3.3%
57.19
+1.93 (+3.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners102.85%
Inst Owner Change-0.39%
Ins Owners3.38%
Ins Owner Change7.25%
Market Cap3.89B
Analysts64.21
Price Target62.59 (9.44%)
Short Float %8.27%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.92
Dividend Growth(5Y)34.29%
DP12.99%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.58%
Min EPS beat(2)-6.73%
Max EPS beat(2)1.56%
EPS beat(4)2
Avg EPS beat(4)-1.23%
Min EPS beat(4)-6.73%
Max EPS beat(4)1.99%
EPS beat(8)6
Avg EPS beat(8)7.13%
EPS beat(12)9
Avg EPS beat(12)9.97%
EPS beat(16)11
Avg EPS beat(16)8.21%
Revenue beat(2)1
Avg Revenue beat(2)-3.75%
Min Revenue beat(2)-8.07%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)0.38%
Revenue beat(12)7
Avg Revenue beat(12)2.09%
Revenue beat(16)8
Avg Revenue beat(16)0.71%
PT rev (1m)-6.51%
PT rev (3m)-7.84%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-24.76%
EPS NY rev (1m)-8.54%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-15.51%
Revenue NY rev (1m)-3.18%
Revenue NY rev (3m)-4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.58 | ||
| P/FCF | 60.28 | ||
| P/OCF | 36.42 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)7.55
EY13.2%
EPS(NY)6.49
Fwd EY11.36%
FCF(TTM)0.95
FCFY1.66%
OCF(TTM)1.57
OCFY2.75%
SpS98.07
BVpS58.64
TBVpS58.64
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 14.07% | ||
| ROCE | 11.7% | ||
| ROIC | 8.98% | ||
| ROICexc | 9.47% | ||
| ROICexgc | 9.56% | ||
| OM | 10.39% | ||
| PM (TTM) | 8.41% | ||
| GM | 20.58% | ||
| FCFM | 0.97% |
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-Score5
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 29.32 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 115.98% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 14.63% | ||
| Profit Quality | 11.5% | ||
| Current Ratio | 6.09 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.68 |
F-Score5
WACC7.35%
ROIC/WACC1.22
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-23.52%
EPS Next 2Y-12.44%
EPS Next 3Y-3.3%
EPS Next 5YN/A
Revenue 1Y (TTM)3.65%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-10.54%
Revenue Next Year-8.16%
Revenue Next 2Y-7.06%
Revenue Next 3Y-2.43%
Revenue Next 5YN/A
EBIT growth 1Y-5.07%
EBIT growth 3Y5.13%
EBIT growth 5Y18.09%
EBIT Next Year0.49%
EBIT Next 3Y3.71%
EBIT Next 5YN/A
FCF growth 1Y-93.94%
FCF growth 3YN/A
FCF growth 5Y8.96%
OCF growth 1Y-90.35%
OCF growth 3YN/A
OCF growth 5Y7.64%